What is Dodo?
DODO Exchange is a capital-efficient, low-slippage on-chain liquidity provider built on Ethereum and powered by the Proactive Market Maker (PMM) algorithm. Featuring single-asset liquidity and working to solve impermanent loss, DODO offers a smooth trading experience and lucrative liquidity provision opportunities.
PMM leverages price oracles and mimics the behaviors of human market makers, and the pricing formula efficiently allocates funds near the market price. This translates to a high level of liquidity on par with centralized exchanges. LPs can provide single-sided liquidity for mainstream trading pairs. When a trade takes place, PMM dynamically adjusts the price by encouraging arbitrage trading in order to rebalance LPs’ portfolios and minimize price risks and counterparty risks for LPs. This is an attempt to mitigate the notorious issue of impermanent loss inherent to AMMs.
DODO was launched in August 2020 and has been audited by PeckShield and Trail of Bits. The DODO protocol is governed by the DODO token, which is distributed through a series of community incentive programs called “DODO Carnival”.
