As the crypto industry is maturing, new solutions are coming to light, emerging on the market in an effort to solve existing problems or improve on existing solutions. This can include anything, from high gas costs to resolving scalability issues, liquidity issues, providing new services, and more.
Projects that can increase liquidity in decentralized finance are considered very important, as liquidity used to be one of the biggest issues for DeFi sector. For years, DEX couldn’t stop and make its own because it didn’t have the appropriate liquidity. Then, Uniswap appeared on the Ethereum network, introduced AMM (Automated Market Maker), and other industries copied the solution.
However, now we have a project called Dodo that challenges AMM solutions and offers its own, saying it is more efficient. We were interested in seeing how it works, so if you want to know as well, here’s Dodo it’s all about.
What Problems Does Dodo Solve (DODO)?
Dodo is a decentralized trading platform that relies on the new concept of PMM (Proactive Market Maker), rather than AMM. This suggests that this allows to solve certain problems, such as:
Liquidity is better than regular AMM
The first thing to note is that Dodo claims that it can offer more liquidity than AMMs, including even Uniswap. According to Dodo, PMM’s price mechanism mimics human trading, and uses oracle to collect very accurate market prices for assets. Next, provide a certain amount of liquidity to match potential orders. In other words, it doesn’t create unnecessary liquidity, which makes it more precise and less wasteful.
Greater price stability
Furthermore, Dodo also claims that it offers more price stability than any other existing solution. When providing liquidity to users, the goal is to provide liquidity that is close to the market price, in order to stabilize the liquidity provider’s portfolio. And the price is low slippage. At the same time, these efforts can help eliminate non -permanent losses by allowing arbitrage trading as well.
Benefits of Dodo (DODO)
But that’s not all. Dodo claims to be able to offer some quite interesting benefits to those who stick with the project. Examples:
Highly accurate market prices
Thanks to its unique technology, the project is able to provide a very accurate market price. In fact, he claims that he is the most accurate, and certainly better than what a project like Uniswap and others can offer. The project says that PMM raises funds near the market price to determine liquidity, and the more the value moves away from the market price, the lower the liquidity, so DODO automatically adjusts the price so that liquidity remains stable.
Free ICO registration
Next, DODO said it also wants to take care of a new cryptocurrency project. He believes that everyone should have the same opportunity when it comes to exposure, so he offers a free ICO list through the Initial DODO Offer (IDO). Basically, all the issuer of securities has to do is deposit their own tokens, and they will be eligible to register for free, and get as much exposure as the platform can offer.
Transaction fees are very low
While DODO has a position as one of the most competitive liquidity providers, it can also make other aspects the best. For example, the transaction costs of the project are very low, and it could be called a price slippage. It’s all thanks to the PMM algorithm, which is very important to note, because DODO is based on the Ethereum network. While Ethereum is notorious for its very high gas costs, DODO is able to offer a better deal because of the protocol.
There is no minimum deposit for Liquidity Providers
Finally, it should be noted that liquidity providers do not have a minimum deposit that must be adjusted in order to become a liquidity provider and start earning passive income in exchange for contributions. This means anyone can join, deposit what they can, and start earning time. This is a more inclusive approach and allows everyone who is interested to join, which is a fun change.
How does Dodo (DODO) work?
DODO is a decentralized trading platform that relies on a new algorithm called Proactive Market Maker. DODO’s development product, PMM is said to be better than AMM-based solutions such as Uniswap and others. It can provide a very accurate market price, along with a very low cost, improving the liquidity efficiency of the chain for Web3 assets.
In other words, the project aims to make it easy for everyone to issue and sell the donkeys, as well as help the assets by providing a free ICO list to people who use the IDO service.
DODO uses the PMM price mechanism, which mimics human trafficking. At the same time, use oracle to collect a very accurate market price for an asset. Next, provide liquidity close to price so that the liquidity provider’s portfolio will be stable, as liquidity gradually decreases at a price that deviates from the actual market price. This is DODO’s way of ensuring that the valuation is always accurate, otherwise the whole project will suffer.
How to Buy Dodo (DODO)
Currently, Dodo (DODO) is available for purchase on the following exchanges.
Binance – Best for Australia, Canada, Singapore, UK and most in the world. U.S. citizens are prohibited from buying Dodo (DODO). Use Discount Code: EE59L0QP for 10% cashback of all trading costs.
Gate.io -This exchange was founded in 2013, and is one of the more popular & well-known exchanges. Gate.io now accept USA citizens (excluding New York & Washington State).
KuCoin – This exchange now offers cryptocurrency trading of more than 300 other popular tokens. Often the first one offers a purchase opportunity for a new token. This is an exchange now accepts International & United States citizens.
WazirX – This exchange is part of the Binance Group, which guarantees a high standard of quality. It’s the best exchange for an Indian citizen.
Dodo (DODO) – A decentralized trading protocol for Web3
Projects like DODO can be overlooked because they’re trying to solve problems, rather than trying to trend, and with big names like Uniswap as competitors, almost no one pays attention to underdogs who claim to offer better service. However, in the case of DODO, the claim is true, which is quite interesting and fun to look at.
We believe that DOOD may have a major role in shaping the future of crypto. Once all of these systems are connected and Web3 is live, DODO can be THE project with an accurate price and high liquidity.