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Hello Dai Dai! To begin the AMA, Please tell us about yourself and DODO.
🐥 DODO is a multichain decentralized trading protocol launched in August 2020. DODO has since accumulated a $50B trading volume and 1.4M users; the Indian market is one of our largest markets! I have been in the crypto space since 2017 and I am known for running a blog called DeFi labs. I was also recently named in the Wirex’s 2021 Rising Woman in the Crypto Power List and Hurun China’s Under 30s to Watch.
1. Starting with the very fun name: Why did you name this project DODO? Any special meaning behind this?
Have you heard of the game Animal Crossing? There is a Dodo bird working for the airlines, moving vegetables among different islands. Just like that, we provide liquidity for different markets. Also, Dodo is cute so we make it our brand. We want our product to be fun, enjoyable and useful to users.
2. So one thing that differentiates you guys is the PMM algorithm. How is the DODO PMM algorithm different from the AMM algorithms of Uniswap, Sushiswap? What advantages does PMM have in creating a mechanism that is more conducive to users?
Traditional Automated Market Maker (AMM) DEXes automate the process of market making by pooling liquidity for two assets and replacing the order books with a simple fixed curve to determine the current price based on the current amount of each asset held.
As the name implies, DODO’s Proactive Market Making algorithm is capable of proactively adjusting parameters such as asset ratio and curve slope in anticipation of market conditions, resulting in DODO pools that are adaptable and flexible for all sorts of use cases. DODO’s PMM pools can even be configured to utilize external price oracles to minimize impermanent loss and achieve higher capital efficiency. This configuration makes DODO’s PMM suitable for use cases varying from single-sided liquidity for bootstrapping pools to fully customizable market making strategies that adapt to market conditions in real-time 🙌
3. Getting into the functionality in PMM, how can you set the assets ratio if both assets have huge differences between them. Also, on which formula does Oracle machine work and how accurate is it?
Simply speaking, the pools on DODO are decoupled. As a pool creator, you can deploy any kind of market-making (MM) strategy. An oracle is an MM strategy and all parameters of public pools are transparent in public 😀
You can read more here.
4. Going back to AMM vs PMM question, our users wanted to know why should they use DODO if they can easily make a transaction with Uniswap and avoid the 2.5% commission? What advantage does DODO offer that they cannot get with Uniswap Liquidity Pool?
Good question! Actually, traders on DODO can always get lower trading costs compared to Uniswap because we have the smart router working as an aggregator. So we compose liquidity from different pools on each DEX for the best trading price.
5. Your website says that you have NFT fractionalization as an offering to users. This is a new segment so can you tell in detail about it.
Pledging NFT (or multiple NFTs) into the DODO NFT Vault will automatically generate an ERC20 token contract. Owners of the DODO NFT Vault can set the percentage of tokens going into the secondary market, and set aside token distributions to the primary market/creative teams/community incentives.
The DODO NFT Vault automatically creates a DODO Trading Pool and pledges in all FRAG tokens that enter the market. The initial price is defined by the owner of the DODO NFT Vault to start selling FRAG. as traders buy, the FRAG price will automatically increase. The market value of FRAG is the valuation of NFT.
Since the pieces of DODO NFT Vault are already circulating in the market, regular users can enjoy the benefits of the NFT price increase by purchasing only the FRAG. You can read more here.
6. Adding to this, does DODO have any plans to make NFT breeding system?
We do have plans to launch NFTs regularly which will be the DODO Minions series. But what we want to focus on in the long run is to mould our brand culture with interesting background stories.
7. One of the biggest plus points I have read about DODO is the ability to reduce impermanent loss in LPs. How is it possible for DODO to reduce the loss, how it can maintain the same aspect ratio of coins when it’s a volatile market?
The magic is that DODO algorithm opens market-making parameters. Market makers can use advanced market-making strategies just like they do on CEXs. We partnered with Kronos, an institutional MM and they’ve put 7M capital in private pools and from over 1 year, they make 7M in revenue.
For retail LPs, I don’t suggest they do MM themselves but they can simply choose public pools and earn a good APR.
8. Lastly, the community wanted to know about oneDODO. What’s the plan with this? What can we do with oneDODO?
🤝 oneDODO is our stable dollar developed together with Ichi. You could mint oneDODO on Ichi by providing a dynamically determined ratio of $DODO and $USDC or exchange it on DODOEx. Then You can add liquidity & stake on oneDODO-USDC pair and earn returns. You can find details here.
9. More info on DODO Private Pools.
DODO Private Pools (DPP) put the full power of DODO’s PMM configuration at your fingertips empowering anyone to be a professional market maker. DPP allows market makers to do the following:
🔸 Make one-sided deposits/withdrawals
🔸 Change the pricing curve at any time
🔸 Have liquidity everywhere in the price range from zero to infinity
💬 Imagine you want to be a market maker for ETH/USDC but you’re worried about ETH popping off and selling all your ETH to traders on the way up. With a DPP, you can perform a one-sided withdrawal to withdraw some of your ETH from the pool for safekeeping. This one-sided reduction of liquidity causes traders to go through the remaining ETH liquidity quickly driving up the price curve quicker than before. This sort of one-sided withdrawal can protect market makers against excessive risk. You can also do the opposite: withdraw USDC in anticipation of ETH’s price falling thus protecting you against the downside risk.
1. Now the NFT theme is very popular and everyone wants to make a quick profit. I would like to know how far you have come in this and what plans do you have?
NFT is not only used for PFP or art in the future, financial NFT is also a big market. We will stick to our strategy on the NFT fragmentation market which we think has big potential. For vDODO stickers, we have benefits with our NFTs such as airdrop with NFTs or tokens. In the future, we will have more functional NFTs for vDODO holders.
2. Is DODO planning to go for blockchain gaming?
We are keeping our focus on DeFi. You will see more products on derivatives this year.
3. Are you planning to promote your project in countries / regions where English is not good? Do you have a local community for them to better understand your project?
DODO is globally developing. Our biggest markets are in South and East Asia, USA, Turkey, and South America. Quite a diversity! You’re welcome to join 👉 https://t.me/DODOIndiaofficial
4. Many artists/users still don’t understand how to create NFT. Do you have plans to educate about NFT and what measures will you take to increase awareness of your project in non-crypto space?
We offer tools to create NFTs in one click 🖱
5. Is there an upcoming DODO token burn?
We do regular token burn for DODO 🔥Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.