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What is Dodo Crypto and How Does it Work?

Dodo crypto is a project that tries to tackle decentralized exchange restrictions by utilizing a proactive market maker (PMM) – a one-of-a-kind solution that provides an alternative to automated market maker (AMM) technology.

Entrepreneurs and theoreticians throughout the world sought to come up with a viable alternative to both central banking and organized stock markets before the financial crisis of 2008. Bitcoin, a decentralized cryptocurrency, was on the scene a year later. However, the financial revolution did not fully begin until Ethereum was released in July 2015.

Ethereum, as a generalist programmable blockchain, allowed for the reconstruction of financial infrastructure, including exchanges, market makers, lending, borrowing, and banking. Defi protocols, which operate on the Ethereum blockchain, are the name given to these automated smart contracts.

DODO crypto is a brand-new Defi technology that adds to an existing innovative environment. Find out what makes it unique in the next sections.

What is Dodo Crypto?

Dodo crypto is a decentralized exchange based on Ethereum and Binance Smart Chain that attempts to increase the availability of Defi liquidity. DODO utilizes its proactive market maker algorithm, unlike many other DEXs that use an automated market maker algorithm. The DODO PMM methodology, according to the company, delivers superior pricing stability and liquidity than AMM DEXs.

Read More: Cryptocurrency Hack Results in the Seizure of $3.6 Billion in Bitcoin by the Justice Department

SmartTrade, a feature of DODO’s product, permits exchanges across tokens on the same network. It also finds the optimum order routing from pooled liquidity sources to give traders the best pricing.

Without the possibility of frontrunning or bot meddling, the Crowdpooling functionality allows projects to kick-start liquidity markets and distribute tokens in an equal opportunity manner. The platform’s first DODO offering feature lets new projects raise funding for free. Meanwhile, owing to DODO’s Pools feature, liquidity providers may establish and run their own market-making methods. Finally, mining may be used to obtain prizes. Traders can engage in trading mining in addition to traditional liquidity mining, while pool builders and liquidity providers can participate in Combiner Harvest mining.

Dodo Crypto

 

DODO is the platform’s BEP-20 and ERC-20 utility coin. It’s utilized for platform governance, staking, Crowdpooling, and IDO participation, as well as compensating stackers and miners. DODO may also be used to the mint dodo, which gives additional membership perks and income from trading fees, and it can be used to reduce trading expenses.

How Does Dodo Crypto Work?

Large swaths of data in the market indicate buyer and seller emotion, and changes to this data drive the market to react dynamically. Compression allows the most significant pieces of data to be removed, and in the case of crypto trading, liquidity is the most crucial aspect. According to the standard market-making formula, the price of the base token climbs linearly with the increase in the price of the base token. The linear model, on the other hand, has its limits. To begin with, it is overly simplistic since it ignores the unequal distribution of liquidity generated by the concentration near the midpoint price. Second, the linear model returns liquidity of zero after the price crosses specific thresholds, even though there is still liquidity at that price.

The DODO team built its own nonlinear proactive market-making algorithm to give better pricing using a method that simulates human trading, is very adaptable and is optimized for on-chain transactions. The PMM may be customized for a variety of scenarios. The PMM algorithm can gather mid prices from external marketplaces with bigger volumes and change them proactively to achieve higher capital efficiency and decrease temporary loss than AMM platforms. This also means that instead of depositing both tokens in the trading pair, as they do on AMMs such as Uniswap, liquidity providers can contribute only one token. The DODO Classic Pool is created by using the PMM.

The PMM also lowers the entrance hurdle for smaller enterprises by requiring less capital to combine with newly generated assets with little sell-side liquidity. This is because when a team issues a token; they can establish liquidity with 100% of their tokens and 0% stablecoins or ETH. The DODO Vending Machine is created via this application of the PMM.

The PMM algorithm may also be fully customized with free-market trading to create the DODO Private Pool, and the asset issuance mechanics can be changed to make Crowdpooling possible.

What Makes Dodo Crypto Unique?

The DODO crypto team’s Oracle-Aided Proactive Market Maker algorithm, which simulates human trading and delivers more favorable pricing, is the project’s key innovation. This model may be adjusted to cover a variety of pool and trade scenarios. When compared to AMMs, the PMM algorithm results in less price slippage and less temporary loss for traders. DEXs also have contract-fillable liquidity, which is on par with centralized exchanges, thanks to the pricing formula.

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Liquidity providers can also deposit any quantity of base or quote tokens, including single token deposits, on the DODO DEX. This distinguishes it from most AMMs, which need that both tokens to be deposited in a certain ratio.

What Gives Dodo Value?

The DODO crypto platform is a noteworthy project because of its unique PMM algorithm, which offers a number of benefits over other DEXs. The platform, which delivers market-leading liquidity, may benefit traders, investors, liquidity providers, and token issuers.

The value of the DODO cryptocurrency derives from several features of the platform. DODO token holders can suggest and vote on platform updates, as well as engage in crowd pooling and IDO campaigns, earn trading fee refunds, stake their tokens, and more Mint can obtain vDODO tokens.

Dodo Crypto

DODO is a worthwhile token to possess for DODO platform users because of all of these advantages. Because of its limited quantity, the coin is not vulnerable to inflationary devaluation and may thus be an excellent long-term store of value. The DODO platform and community’s future expansion may increase the project’s and cryptocurrency’s value.

How Many Dodo (DODO) Coins Are There In Circulation

Out of a total of 1,000,000,000 DODO tokens, there are presently 283,873,391 in circulation. 60 percent of DODO’s entire supply is set aside for community rewards, 15 percent for the team and advisors, 16 percent for investors, 1% for early liquidity, and 8% for partnerships, operations, and marketing. The seed round and private sale rounds each raised $5.6 million, with tokens selling for $0.01 and $0.05 apiece.

How To a Choose a Dodo Wallet?

You may store your DODO crypto in a variety of ways, and the wallet you pick will likely be determined by what you want to use it for and how much you need to keep.

Hardware wallets, also known as cold wallets, like Ledger or Trezor, are the safest way to store and backup cryptocurrency. They do, however, need more technical expertise and are a more costly alternative. As a result, more experienced users may be better suited to storing bigger volumes of DODO crypto.

Read More: How to Buy Cryptocurrency? Buying Guide 2022

Software wallets offer a different solution that is both free and simple to use. They might be custodial or non-custodial and can be downloaded as smartphone or desktop apps. With custodial wallets, the service provider manages and backs up your private keys on your behalf. Non-custodial wallets hold private keys on your device using security components. While handy, they are considered less secure than hardware wallets and may be better suited to individuals with lower quantities of DODO or those who are more inexperienced.

Online wallets, often known as online wallets, are likewise free and simple to use and can be accessed from a variety of devices using a web browser. On the other hand, are considered riskier and may be less secure than hardware or software options. Because you’ll be entrusting the platform with the management of your DODO, be sure it’s a reliable service with a proven track record in security and custody. As a result, they’re best for those who have a modest number of cryptocurrencies or who trade often.

Kriptomat provides a secure storage solution that allows you to easily store and exchange your DODO tokens. When you save your DODO with Cryptomat, you get enterprise-grade security and easy-to-use functionality.

When you use our safe platform as your storage option, you may buy and sell DODO in seconds, or trade it for any other cryptocurrency.

How To Use Dodo?

Traders may utilize the DODO platform to discover the best trading pricing by aggregating liquidity sources and using optimal order routing. Because of the proactive market maker, liquidity providers can earn fees by contributing to liquidity pools with minimized price slippage and temporary loss. New businesses can utilize the Crowdpooling feature to distribute tokens without the need for frontrunning or bots.

DODO tokens can be kept indefinitely to get trading fee refunds and allocations for Crowd pooling and IDOs. DODO may also be used to create and vote on ideas as a governance token. Tokens can be staked to earn additional DODOs or create vDODOs.

Conclusion

It’s debatable if DODO is worth purchasing. To mention a few enhancements, Uniswap’s V3 upgrade enhanced capital efficiency and fee customization for yield farming, to name a few. While DODO’s PMM strategy appears promising, it did fall victim to the same exploit it was designed to avoid: front running.

On the other hand, it’s hard to think of a DeFi protocol that hasn’t been abused in some way. Given DODO’s low price, which is in the January range, and its rising TVL (total value locked), diversifying your DeFi portfolio to take advantage of the anticipated growth surge, later on, may be useful.

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