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A spotlight article on DODO including its feature, financials, and cyber security records
Cover policies are available for the DODO community on the DODO V2 cover product on the Popular DeFi Apps in the Neptune Mutual Marketplace on the BNB Smart Chain. Additionally, users can provide liquidity to the same pool and earn rewards.
DODO is a decentralized trading protocol that lets users swap cryptocurrencies at the best prices. It’s provided with a user-friendly interface for easy and hassle-free transactions.
The protocol has employed a robust way of determining the price of assets: proactive Market Maker (PMM). It helps achieve efficiency in on-chain liquidity for Web3 assets and maintain price stability.
DODO has recently introduced DODO X, a cross-chain aggregator that allows exchanging tokens between any two chains at the best price. With DODO X, you get access to several other features, like limit order and developer toolkits.
DODO was initially built on Ethereum, then later launched on Arbitrum, BNB Smart Chain, Polygon, Avalanche, Aurora, OKTC, and many more chains.
Besides exchanges, DODO also lets users deposit their assets into liquidity pools to receive yields. On top of having its own liquidity, DODO aggregates prices from liquidity pools from other DEXes, resulting in the protocol offering competitive trading prices and lower slippage.
DODO has its own native token, $DODO, which is used for governance. The team distributes $DODO tokens to their loyal community members as incentives, and $DODO token holders can take part in governance by voting on proposals.
DODO stands out from other protocols due to several unique features. Let’s see them in detail.
Proactive Market Maker: DODO sets itself apart from other DEXes by implementing the proactive market maker (PMM) rather than the commonly used automated market maker (AMM). This results in accurate market prices, price stability, and lower gas fees than other DEXes.
Limit Order Trading: Besides letting users swap currencies in default mode, DODO X also offers limit order trading. This means you can specify a minimum price (limit price) you want to receive for a token. And if the price reaches the specified limit price, then only the trade will be executed.
Cross-Chain Trading: A unique feature of DODO X is that it allows users to trade digital assets from different chains using a cross-chain token bridge. With that, you can aggregate multiple platforms and exchange several tokens from different chains quickly and easily.
Liquidity Mining: DODO provides two different types of liquidity mining: single-coin mining and LP market-making mining. In single-coin mining, users only need to stake tokens in the mining contract to participate, and there’s no loss of principal investment. Whereas, in the latter one, users should also provide market-making funds to the liquidity pools and receive LP tokens to participate in mining. It also carries a risk of principal loss.
Crowdpooling: Crowdpooling is a mechanism that enables anyone to participate in providing liquidity without having to compete against insiders or bots. It was introduced to fairly distribute tokens and initiate liquidity markets. Projects can supply a number of tokens and set an initial offering price. Of all the tokens, a portion will be available for Crowdpooling, meaning users can participate in the liquidity pools by staking their capital.
Tokenomics: The total $DODO supply is $1 billion, out of which 60% is said to be used for community incentives. The remaining 40% is distributed to core teams, investors, marketers, partners, and IDO. vDODO works as the membership token of the DODO ecosystem, which is achieved by pledging a certain number of DODO tokens. vDODO holders can receive $DODO as membership rewards as well as get the access to submit governance proposals.
DODO X has raised over $5 million from 18 investors, including four lead investors. The protocol's most successful funding round was held in October 2020, when they raised $5 million through 16 investors with the lead investors being Binance Labs, Pantera Capitals, and Three Arrows Capital. They raised $100K in their recent funding round in January 2022.
The trading fees collected from the exchanges are the source of DODO’s revenue. However, its total business and revenue collected have not been publicly available.
According to DeFiLlama, DODO has a market cap of nearly $73 million as of August 2023. Whereas its total value locked (TVL) is around $33 million. This demonstrates that the protocol is in a strong financial position.
DODO has been connecting with their global users, providing a social media presence on Twitter (X), Telegram, Discord, and Medium. The platform utilizes these platforms and channels to announce new updates, inform users about the latest developments, answer questions, provide educational content, and guide newcomers to use their platform.
The protocol has done a good job of offering its social media channels in different languages. You can find DODO sharing updates and insights on three different Twitter (X) accounts in three different languages: English, Chinese, and Japanese. It has nine Telegram channels in different languages to facilitate efficient communication with users from different parts of the world.
Since the launch, DODO has been consistent in checking for security issues and working on fixing them. The protocol is transparent about its audit reports and has made its code publicly available on GitHub.
It has gone through multiple security audits since its launch from credible audit firms like Trail of Bits, PeckShield, SlowMist, Certik, Beosin, and Sherlock.
However, DODO suffered a smart contract vulnerability in March 2021, resulting in the attackers stealing funds worth $3.8 million. Fortunately, the DODO team was able to return $3.1 million out of the total stolen.
DODO is always looking to solidify their protocol’s security and has created a bug bounty program. The program allows anyone to track bugs and vulnerabilities in the project and report them to receive rewards up to $100,000.
Overall, DODO stands out as a user-friendly DEX with unique and innovative approaches to maintaining stable token prices and lowering gas fees. Besides, it offers diverse ways for its users to yield and earn rewards, so it has gained a lot of traction.
Regarding security, although the protocol has gone through multiple bug fixes and audits, there was a smart contract vulnerability, resulting in the loss of some funds.
That's where Neptune Mutual comes in. If you're a DODO user and looking to protect your funds, then you can purchase a cover in our cover marketplace. DODO V2 coverage is available on the BNB Smart Chain. You can also find coverage for other CeFi and DeFi projects in our marketplace on the Ethereum and Arbitrum chains as well.
Or if you have a project and are looking to protect your community, you can get in touch with us. We'll help you create a cover pool for your project.