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Dodo: Decentralized Trading Protocol for Web3

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DODO is a decentralized exchange platform that works based on a unique protocol named Proactive Market Maker (PMM). It has extremely capital-efficient liquidity pools that support single-token provision, eliminate slippage, and minimize temporary loss for traders.

SmartTrade, a decentralized liquidity aggregation service, routes to and compares numerous liquidity sources in order to provide the best swap rate between any two tokens. DODO DEX also removed all impediments to the construction of a liquidity pool for the issuing of new assets, allowing asset ratios, liquidity depths, fee rates, and other factors to be freely adjusted and configured in real-time. DODO has built Crowdpooling, a permissionless, equal opportunity liquidity offering mechanic, as well as configurable technical solutions for professional on-chain market makers, based on this breakthrough.

What is DODO?

SmartTrade trading and aggregation, Crowdpooling/IDO, pools, and mining are all part of DODO’s decentralized exchange product package (which includes liquidity mining, for example). It’s integrated with a variety of wallet apps that allow users to engage with the platform.

Custom token

DODO makes it simple for users to design their own tokens. When generating a custom token in DODO DEX, you can choose the token symbol and supply. There are also some unique features accessible. When you choose the burn option, for example, a proportion of tokens are sent to the burn address for each on-chain transfer. In the platform, you can also enable trading fees and supply increases.

Liquidity Pools

In DODO DEX, there are two ways to create liquidity pools. You can create a public pool where anyone can add liquidity, and the parameters can’t be changed after they’ve been created. Furthermore, a regular version with a 50/50 value liquidity provision is available. In these pools, more parameters can be set.

Liquidity Mining

DODO DEX makes it simple to construct liquidity mining programs. Single-Token mining, where the amount of token rewards increases the longer single-sided tokens are deposited, and Multi-Token Mining, where the amount of token rewards increases the longer the multi-sided tokens are submitted. And LP Mining, in which the quantity of token rewards increases as the amount of LP tokens deposited increases.

Fractionalized NFT

Fractionalization is the process of converting a single or a group of nonfungible tokens into fungible tokens (ERC-20 tokens). The fractionalization of NFTs lowers the entry barrier for retail investors while simultaneously allowing for collective ownership of high-end NFTs.

With DODO NFT, a project that fractionalizes NFTs, DODO has launched a solution to this challenge. To create ownership of the vault, this approach entails storing the NFT in a vault and fractionalizing it into fungible tokens (by issuing ERC20). Users can use DODO’s Proactive Market Maker (PMM) algorithm to exchange their fungible ‘shares’ of the vault. This procedure will enable anyone to purchase a share of such NFTs based on their financial means.

How do decentralized exchange platforms work?

Decentralized exchanges adopt an alternative way to buying and selling digital assets, relying instead on self-executing smart contracts to support trading rather than an intermediary organization for clearing transactions. This dynamic allows for quick trades at a lesser cost than CEXs (Centralized Exchanges).

DEXs adopt a non-custodial framework because of the absence of middlemen. This means you have full control over your cryptocurrencies and are in charge of managing your wallets and private keys. For traders, investors, and every user who wants complete control over their assets, keeping their private keys is very attractive.

What is Web3 used for?

The main concept behind Web3 is to take the world wide web as we know it and add blockchains to it. Blockchains have the potential to give everyone equal ownership of their online presence. Distributed applications (or dApps) developed on the Ethereum or other similar blockchains, which pays out to users who assist keep the network operational, are at the heart of Web3.

Conclusion

DODO DEX is one of the few exchanges that have the potential to take over the DEX sector by addressing some of the most basic issues. DODO DEX promises to eliminate impermanent loss, boost liquidity, and react to dynamic market conditions during price volatility with its original and novel market maker algorithm.

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