What Is DODO?
DODO is the native token of DODOEx, which is a cross-chain decentralized exchange (DEX) and liquidity aggregator. Check out the DODO price chart above to see the live DODO price.
For traders, DODOEx provides a sufficient amount of liquidity, comparable to the amount provided by centralized exchanges (CEXs). The liquidity can be used for operations like liquidations and auctions. Besides, due to its unique PMM algorithm, DODOEx provides arbitrageurs with beneficial price differences in comparison to other exchanges.
What Is PMM? Instead of implementing the AMM technology, as most DEXs do, DODOEx utilizes the proactive market maker (PMM) algorithm. PMM features a pricing mechanism, which uses oracles that collect up-to-date information about crypto asset prices. The portfolios of liquidity providers are then stabilized by providing sufficient liquidity according to these prices. If the prices change, the liquidity is automatically adjusted.
Besides, since PMM allows arbitrage trading, it eliminates the risk of impermanent loss, as well as reduces price slippage and single-risk exposure.
It’s also worth mentioning that DODO provides new projects with a free-of-charge crowdfunding opportunity through its custom IDO called the Initial DODO Offering. It differs from traditional IDOs held by AMM-based DEXs in that projects just need to deposit their own tokens on DODOEx, as opposed to depositing both their project tokens and quote tokens to liquidity pools.
The DODO platform also offers the DODO Vending Machine, which essentially allows anyone to create their own trading platform. It simplifies the process of creating markets and distributing tokens, this way allowing users to easily establish their own liquidity markets for their assets.
Lastly, note that the liquidity providers (LPs) on the DODOEx have a lot of freedom of choice as well as other benefits. This is the case because there is no minimum liquidity deposit set, and there’s no restriction on the type of assets for liquidity provision. Also, to eliminate price risks, LPs can deposit their own tokens. In addition to that, they can establish new trading pairs. Besides, LPs are rewarded with DODO tokens for their contribution to the platform.
Who Founded DODO?
Since the founders of the DODO crypto project chose to remain anonymous, they go by the pseudonyms Dianne Dai and Radar Bear.
Use Cases of DODO Tokens
The primary use case of DODO tokens is governance. This means that DODO holders have the power to determine the future direction of the DODO crypto project. In order to participate in the governance process, users have to convert their tokens into vDODO tokens (1 vDODO is equal to 100 DODO). Apart from granting governance rights, vDODO also gives token holders other benefits. Besides, they are rewarded with dividends from trading fees.
vDODO can be converted back to DODO, however, there’s an exit fee that needs to be paid in order to do that. The fee is distributed among DODO holders.
In addition to governance, DODO tokens provide holders with discounts on trading fees and IDO allocations. Besides, they are also used to incentivize the community. For instance, the project has a referral program, which rewards users for inviting their friends to join the network. The invitees also receive rewards, so it's not just the ones who give the invitation who benefit from it. New users receive 12 DODO tokens as an incentive for each block created during the first week.
Don’t forget to take a look at the live DODO price featured on the DODO price chart.
Tokenomics of DODO
The max supply of DODO coins is 1 billion. The DODO token was released on Binance in February 2021. Traders were able to farm it by staking BNB, BUSD, and BETH tokens in Binance’s liquidity pools.
It’s also worth noting that DODO received a $600,000 seed investment in August 2020 when it was launched. Then, later, in September, it also received a massive $5 million investment from a group of venture capital funds led by Binance Labs, Three Arrows Capital, and Pantera Capital.
New DODO tokens are mined through the Trading Mining feature. Essentially, just like the name suggests, users mine DODO coins by trading digital assets on the platform. By activating this feature, traders are able to get 1% of DODO tokens from the prize pool dedicated to Trading Mining. Though DODO tokens can also be bought. If you’re planning to do that, make sure to analyze the aforementioned DODO price chart in order to see the current (and the previous) DODO price.
Talking about DODO distribution, 60% of the total supply was dedicated to community incentives. The remaining portion was distributed across the core team, advisors, investors, and future employees, as well as set aside for operation, marketing, and partnership purposes.