![]() PMM, like AMMs, provides liquidity in the price range of zero to positive infinity, but the PMM price curve is significantly flattered in the area near the oracle (market) price. That is, most of the funds are gathered near the market price, which allows for more active, frequent trading, increasing fund utilization. This ensures the constant provision of sufficient liquidity. On the other hand, PMM proactively shifts the price curve in the same direction to ensure that the section in the vicinity of the market price remains flat. Īs the market price changes, AMM passively relies on arbitrage trading to change prices. With everything else fixed, the PMM curve is significantly flatter than the Automated Market Maker (AMM) curve near the market price, indicating higher fund utilization and lower slippage. PMM leverages price oracles to retrieve accurate market prices of assets as input. It then aims to provide sufficient liquidity near the market price for every asset. The result is that liquidity decreases rapidly when far away from the market price. The following graphs compare the price curves of DODO (PMM) and Uniswap (AMM). Īround late September of 2020, DODO raised $5 million through the private sale of a new DODO exchange token. The valuation came out to $50 million. ![]() Other notable investors include Robert Leshner, Bobby Ong, founder of CoinGecko Jason Choi, and Spencer Noon. Investorsįramework Ventures led a $600,000 seed investment in DODO. Wang, is the founder of DOS network, China’s first oracle project. He was one of the core developers of DDEX, another China-based DeFi project. Lei designed the PMM algorithm and was a Physics Ph.D. History TeamĭODO was founded by Diane Dai, Mingda Lei, and Qi Wang who have influence in China's DeFi community. It launched publicly on August 25, 2020. Dai started the first DeFi Community in China, running a WeChat subscription channel called DeFi Labs, and numerous other WeChat groups such as “DeFi The World,” the oldest of China-focused DeFi WeChat groups. DODO launched on the 25th of August, 2020. PMM is designed to combine the best of AMM and centralized exchange’s order book for better liquidity and lower Slippage (finance). In order to minimize different counterparty risks for Liquidity providers, DODO dynamically adjusts market prices to encourage arbitrageurs to step in and stabilize Liquidity providers' portfolios. It gathers funds near Market prices to provide sufficient liquidity. DODO is governed by the DODO governanceĭODO accepts various liquidity providers’ assets. DODO is a Decentralized Exchange (DEX) and cryptocurrency that aims to be a Next Generation on-chain liquidity provider, leveraging the Proactive Market Maker Algorithm (PMM) to provide pure on-chain and contract-fillable liquidity for everyone.
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