DODO is a liquidity protocol powered by the Proactive Market Maker (PMM) algorithm and built for capital efficiency
DODO’s contract-fillable liquidity is comparable to centralized exchanges (CEXs)
DODO offers a low barrier-to-entry, pain-free token issuance mechanic for long tail assets
Developed by the DODO DEX team, Proactive Market Maker (PMM) is an oracle-aided algorithm with an advanced pricing formula that provides contract-fillable liquidity. Traders get lower slippage with PMM than AMMs.
Short answer: there is reduced impermanent loss on DODO DEX compared to other AMM platforms. Long answer: On DODO DEX, there is no AMM-specific impermanent loss caused by asset reallocation. LPs do need to beware of market/inventory risk associated with market making.
No. DODO DEX allows liquidity providers to deposit any amount of base or quote tokens. You deposit what you have, nothing more. Unlocking single-token deposit gives LPs the flexibility to choose how they want to market-make.