Why @BreederDodo is one of the best DEXs in the crypto ecosystem! 🔥
blog.li.finance/dodo-a-deep-dive-6ded3423716f
1/ DODO's DEX can address the issues generally associated with DEXs. Here’s how:
a) Lack of Liquidity — it is a meta aggregator, which aggregates liquidity sources across multiple DEXs and its own liquidity pools.
2/ b. Slippage — It is built on capital-efficient liquidity pools optimized to reduce impermanent loss and slippage.
c) Lack of Arbitrageurs — The Proactive Market Maker algorithm iterates on the AMM paradigm to adjust their liquidity pools to the needs of market makers.
3/ Let’s learn more about how it works!
DODO’s product suite includes the SmartTrade swap aggregator, Crowdpooling, a custom pool management interface, the Proactive Market Maker, and various forms of mining.
4/ Let’s look at these products in more detail:
a) SmartTrade — Enables them to offer decentralized liquidity aggregation with smart routing.
b) Crowdpooling — It is a unique liquidity-offering protocol
5/ c) Pool Management Tools — It has two tools for creating and managing liquidity pools: DODO Vending Machine and DODO Private Pool.
d) Combiner Harvest Mining — To incentivize projects to integrate with the DODO ecosystem and encourage LPs.
6/ e) Proactive Market Maker — DODO’s Proactive Market Maker algorithm is their proprietary iteration on the Automated Market Maker model. It is at the heart of their most innovative functionality.
To learn how their algorithm works, check out our deep dive!
7/ Those who stand to gain the most from using DODO’s protocol are as follows:
a) Investors — Investors on all sides of the asset-swapping equation will find using DODO highly beneficial.
b) LPs — They are incentivized to contribute to its pools thanks to the rewards.
8/ c) Market Makers — Market makers seeking to launch a new asset will find DODO’s tools invaluable.
d) Swappers — They get guaranteed liquidity and Oracle-based price adjustments that minimize slippage and keep markets highly liquid.
9/ e) Developers — Devs who want to enable cross-chain swaps via DODO can also pass these benefits on to their users.
There’s no easier way to enable DODO DEX in any dApp than with the LI.FI SDK.
docs.li.finance/official-documentation/
10/ Are there any risks of using DODO?
The liquidity pools can be controlled manually. Thus, there’s an element of centralization wrt to the market-making process. Be aware that the creators of the pools can withdraw value arbitrarily at any time.
dodoex.github.io/docs/docs/pmm/#use-case3
11/ DODO has grown tremendously since its launch, garnering a TVL of $358 million. Moreover, many dApps have shown tremendous interest in partnering with the protocol.
defillama.com/protocol/dodo
Partnering with DODO to bring the power of their algorithms to our userbase was a no-brainer for us, and we think that, once you use LI.FI to initiate swaps powered by DODO, you’ll agree with us.
Developers looking to take advantage of DODO’s growing reach without developing a custom integration with the protocol will find immense value in integrating our SDK.
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