DODO community leader: v2.0 version recently launched, operations around the issuance of new assets and playing new
The DEX track is entering the second half, and all major projects are catching up with each other. Among them, DODO is one of the few domestic outstanding DEX. for this reason, we invited the head of DODO community, Mr. Sun, to decode the charm of active market maker DODO protocol today.
Sun Xiaohu, the head of DODO Asia Pacific community operations, was previously in charge of project operations at CypherJump and in charge of operations and marketing at DOS Network.
The following is the full text of the public interview, enjoy~
First question: Recently, there is a lot of news about DODO, for example, we reached a cooperation with Token Pocket yesterday. What is the significant impact of the cooperation with Token Pocket to DODO? Also, can you tell us the main results of DODO’s overall external cooperation so far?
Sun Xiaohu: After DeFi has entered the public eye, we can see that the wallet has become the main transaction portal, and if you want to trade on the cell phone, you have to enter through the wallet. Firstly, DODO will provide users with a more convenient USDC-USDT stablecoin exchange portal in TokenPocket, and realize single-coin market making and lossless mining of stablecoins. More in-depth cooperation is also under discussion and design, and we believe we will see you soon.
We have already established cooperation with Chainlink, a prophecy machine, to introduce prophecy machine quotes into the active market maker algorithm (PMM). Given an external market price, DODO’s PMM algorithm will dynamically adjust the price curve to ensure the best liquidity around the market price.
Another partner is Wootrade, a professional market maker. DODO’s PMM-based algorithm allows market makers to implement more flexible market making strategies in the chain; in fact, AMM’s market making strategy is too conservative or even rigid to meet the dynamic needs of different market makers. Our cooperation with Wootrade will make it possible for professional market makers to achieve flexible market making on the chain.
Second question: The success of a DEFI project cannot be achieved without a good community governance. What is the current state of DODO community governance and what measures does DODO take to improve the efficiency of community governance and enhance the activity of community participants?
Sun Xiaohu: DeFi is inseparable from governance, which is the reason why the public is more willing to participate in the project. We are also very concerned about governance, which we have discussed and advanced within the team, though it has not been made public yet. We will allow people who hold DODO token to vote and propose governance to decide on the percentage of fees and dividends, and even some design of the product.
Because DODO is a team that has just been established for a few months, we will first ensure that the transactions are better and more complete, and then we will advance the governance in parallel. Forum is the first section we put online, this will meet with the community soon, voting is under development.
The third question: most users of DODO’s perception is that the active market maker program is adopted. It is said that with price guidance expectations, 10 times the liquidity and capital utilization can be achieved. Can you give us a brief description of how that is achieved?
Sun Xiaohu: The active market maker algorithm provides sufficient liquidity by introducing a prognostic machine to guide prices and gather capital around the market price.
As you can see, PMM has a different curve than AMM, although both provide liquidity in the price range from zero to positive infinity, the PMM price curve is significantly flatter in the area around the prophecy machine price (market price), which means PMM has higher capital utilization and lower slippage, while PMM offers better prices.
This chart is a contrast chart when the price changes. when the market price changes, AMM is passively relying on arbitrage trading to change the price. instead of passively waiting for arbitrageurs to trade, PMM actively changes the position of the price curve so that the price curve is always smooth around the market price, i.e. providing sufficient liquidity.
Q4: DODO’s approach of using a prognostic machine to mitigate the risk of impermanent losses is ingenious. However, we have seen some challenges in actual operation, such as arbitrageurs who will update faster than the feeder pool.
What are the main challenges of DODO in our actual operation? And how do we start to solve them?
Sun Xiaohu: The main challenge of DODO is that there are not enough natural trading users, and there are not many tradable assets on DODO, so trading is not sufficient. Because the ideal situation of PMM we propose is based on the assumption of the frequency of Uniswap’s turnover rate, but DODO has just started a few months, while Uniswap has been developed for two years, so our next main goal is to do user growth.
Our idea is to make DODO a better platform for issuing new assets from the product, giving more flexible tools to motivate more project parties to come to DODO to issue their assets, while traders are following the assets.
This month v1.5 will be online, you can buy and sell any currency, improve the experience of trading optimization, to solve the situation of few tradable assets.
From an operational perspective, our means is the issuance of new assets. It will be similar to the form of IEO, which will all be implemented in version 2.0 and is expected to be available to everyone at the beginning of the first quarter. We can’t reveal too much yet, welcome your continuous attention.
In addition, because DODO is a brand new product, we are also actively exploring and researching, and are willing to stand at the forefront to explore more advanced on-chain market making methods, including institutional market makers to provide prophecy machines, on-chain quantitative strategies, etc.
Fifth question: If you open the list of DODO’s investors, it is a long list, which basically includes most of the active institutions and investors, such as Framework Ventures, Three Arrows Capital, Pantera Capital, Binance Labs, Robert Leshner (ComPound founder), Bobby Ong (Coingecko founder) and so on.
What do most investment groups look for in DODO? What role do these investor groups play in the operation of the DODO agreement, and how does DODO align its interests with those of the community and investor groups?
Sun Xiaohu: We are very grateful to the investment institutions and investors for supporting DODO and PMM, and I think the main reasons why DODO is favored by everyone are these: 1.
1. the founding team of DODO has been working in the DeFi field for a long time, and the team composition is more complete. The founder, Radar Bear, has been working in DDEX, the earliest DEX team in China, since 17 years as a technical developer and responsible for the liquidity business of the exchange, so he knows the whole Dex market and liquidity very well. Partner Daidai was in charge of marketing and branding at DDEX, and was the first KOL to popularize and preach DeFi in China, as well as the initiator of DeFi labs. Partner Qi Wang was the co-founder of DOS Network and an Oracle engineer, with technical background and rich experience in entrepreneurship.
2. is DODO’s original PMM mechanism, which is very innovative. PMM can achieve the best liquidity and lower slippage on the chain by introducing prophecy machine price, supporting unilateral coin flush and cost-free issuance of new assets. Many of our investors are more researched and involved in the crypto space and DeFi space.
They have a deeper understanding of what DODO is doing and see the DODO mechanism as a next generation solution that is closer to the future of DEX. Our investors actually pay a lot of attention to our progress and provide us with professional advice at key points, as well as support in terms of resources, such as on community governance, Framework gives us a lot of new ideas.
We are relatively neutral about how to coordinate these relationships, we will not interfere too much, and every interest or stakeholder can be involved in the governance in the future to express their opinions and vote on the decisions. That’s what community governance is all about.
Q6: Mark said at the Babbitt conference the other day that DODO is hiring for relevant positions. Can you tell us about the kinds of positions that are currently being hired? Also, what is DODO’s current team structure and team atmosphere? What are the future plans for the team?
Sun Xiaohu: DODO team currently has more than 20 people, including product and development staff, operation and marketing staff, as well as a few designers and administrative staff, and is currently a distributed office, distributed around the world, including Beijing, Shanghai, Hangzhou, Australia, North America. The working atmosphere is good, everyone is working in one direction to achieve better DEX, the team is also all relatively young and the management is flat.
In the future, we still hope to have more excellent developers join us, and if you have friends around you who want to come over for internship, you are welcome to recommend them. We also welcome the community to contact us, there will be a lot of opportunities for in-depth cooperation. We are looking for smart contract engineers and front-end engineers
Q7: It is known that DODO will focus on three things next: smart routing, we will bring professional market makers to the chain, and new asset issuance. What is the specific progress of these three lines so far? What are the biggest challenges in the process of implementing each line?
Sun Xiaohu: Indeed these are all things we are focusing on. For smart routing, we have developed and implemented it, and it is currently in the internal testing stage, and it is a very good trading tool. When you find a token you want to buy and it’s already on the DEX, you no longer need to go to many websites to see which DEX it’s on, or compare which depth is better between each DEX, you can go directly to DODO to trade here and we will choose the optimal trading path for you. This feature is similar to other aggregators and will be online soon.
Another aspect, professional market makers on the chain is a unique feature of DODO, it allows market makers to customize their market making strategy on the chain, we are continuously promoting it, Wootrade is the first professional market maker we cooperate with, I believe that after version 2.0 is launched, it will attract more professional market makers to come to DODO to make market voluntarily.
New asset issuance is the focus of all trading platforms, it is the biggest competitive point of differentiation, we can go back to the rise and success of Coinan at the end of 17, relying on new assets, now DEX is the same, which platform has more high-quality new assets, where you can get more traffic.
At the end of last month, the Swiss compliant blockchain project wCRES launched DODO, which rose 700% in a week, and we will continue to attract more new assets in the future.
Question 8: Since Yearn Vaults v2, Yearn.Finance has announced synergistic cooperation with 10 projects one after another, including Hegic, Alpha, Pickle, Cream, PowerPool, Cover, Bounce, Akropolis, Sushiswap and Chainlink, to improve capital efficiency, share development resources and build the DeFi ecosystem together.
Some people believe that the future competition of DEFI is ecosystem to ecosystem, and the advantage of single project combat is not obvious. Being on the front line of the industry, how do you feel about this? How do you think about this matter?
Sun Xiaohu: We think there will be two main routes for DeFi in the future, one is Yearn’s community alliance route and the other is the VC-backed route; although they look different, they actually share the same path, both are supported by institutions and cannot be separated from the community consensus.
In fact, DeFi is very combinable, for example, why aggregators can be implemented, while the traditional CEX and order book DEX can not, is because AMM and PMM this kind of liquidity on the chain can be shared.
A single project is not a feature of DeFi, and more projects will stand together in the future to achieve a new play of composability. Also from the product development level, the real growth layer explosion is the result of community consensus, such as Chainlink and AAVE, although they are both VC routes, the product was able to explode through deep community involvement.
DODO is a brand that is both top VC-backed and popular with the community, and community governance is also in our discussion plan. We are excited about the combinability of DeFi and are looking forward to it, because there are many combinable ways to play with DODO in the future.
Community Questions
- What is Dodo’s model for issuing new assets? Is it an incubation model like a traditional exchange, or is it a screening model?
Sun Xiaohu: DODO allows anyone to issue new assets on it, which is similar to Uniswap, but it is more flexible and customizable, as a project party can top up any percentage of tokens on DODO. ETH.
Customizable means that the market making strategy can be set flexibly. For example, in Uniswap market making, only coins can be recharged, it will spread the coins evenly to 0 to positive infinity, in DODO is possible to set your own, for example, you can set a better buy order sell order around the price.
2. About the original PMM mechanism of DODO?
The core of AMM algorithm is the formula X×Y=K. This function determines the price range of two tokens according to the available quantity of each token. When the supply of tokens X increases, the supply of tokens Y decreases to maintain a constant product K
Mathematical model of AMM’s formula
It is a change in the proportion of assets that can be considered a constant product.
This is the algorithm of PMM, and a simple understanding is that it separates the asset ratios.
The details can be viewed here
https://dodoex.github.io/cn/docs/
3. the story of DODO mascot and the origin of the name of the logo?
Sun Xiaohu: DODO is a kind of bird, also called Mauritius DODO bird, is also a cute character in the game DODO, DODO bird in this game operates DODO airlines, help trade between the islands DODO, equivalent to as a middleman to provide liquidity, this and we do DEX properties similar. Our name DODO also means the same thing, we are the infrastructure that provides liquidity for the DeFi market, and the image is also very cute
END.
Statement:
Token Damo (Token Damo Institute) strives to be objective and fair in the content and opinions contained in this article (report), but does not guarantee its accuracy, completeness, timeliness, etc.; the information or opinions expressed in this article (report) do not constitute any investment advice, and Token Damo (Token Damo Institute) does not assume any responsibility for any actions taken as a result of using this article, so please be careful when participating in the cryptocurrency market.
