App spotlight: DODO
An interview with 0x integrator DODO, an on-chain decentralized exchange and liquidity provider for everyone.
Welcome to the 0x spotlight series, where we highlight some of the exciting and novel projects built on 0x. Next up is DODO! DODO is an on-chain decentralized exchange that leverages Swap API to provide traders with the best prices. We chatted with the DODO team about the importance of multi-chain development, what they are currently working on, and why they decided to integrate Swap API.
Enjoy the interview!
What is DODO?
DODO is a decentralized exchange platform that provides an alternative both to the classic and convenient centralized exchange and to other DEXes, which usually suffer from low liquidity, high volatility, and confusing user interfaces.
With the help of our innovative Proactive Marker Maker (PMM), DODO uses oracles to dynamically determine the actual price of a crypto asset, which results in lower slippage and reduced impermanent loss compared to AMM platforms. DODO is also a liquidity source aggregator, using the SmartTrade feature to intelligently find the best order routing from those sources to give traders the best prices.
In January of 2021, DODO launched its unique Crowdpooling feature, which is a liquidity offering mechanic that allows issuers to be able to offer assets at a low cost and to provide highly liquid capital pools for investors. Investors also benefit from Crowdpooling, as they are reassured by its guaranteed liquidity protection period and resistance to bot interference and frontrunning. Crowdpooling represents the next step in DODO’s mission to provide a platform where anyone can participate, without hesitation, in the nascent DeFi ecosystem.
DODO recently launched on Polygon in a major step toward the multi-chain future. Why is multi-chain development an important part of DODO’s mission and what has the response been so far?
Multi-chain development really gets to the heart of what DODO is all about. In a crypto economy where users want both great DeFi services on multiple blockchains and scaling solution platforms simultaneously, we must be proactive in making our innovative technology available to as many people as possible. This strategy involves integrating our infrastructure with both L1 and L2 chains, as well as with sidechains.
On the L1 front, DODO is already integrated with Ethereum, Binance Smart Chain, and the Huobi ECO, and, as of May of 2021, has been deployed to Moonbeam’s Moonbase Alpha testnet. DODO’s V1 and V2 smart contracts are also fully deployed on Arbitrum, a major L2 chain designed to make Ethereum-based transactions fast and affordable. More recently, DODO announced its deployment on Polygon’s PoS sidechain, which is a framework for building and connecting Ethereum-compatible blockchain networks.
DODO has seen an overall upward trend in trading volume since we began implementing our multi-chain strategy in February, with dramatic jumps in volume after deploying on BSC and Polygon and a generally steady rise throughout. In recent weeks, our approximately 1,700 trades per day have been split around 60:40 between the ETH and BSC mainnets, respectively, with Polygon accounting for the remaining volume. Our TVL has also been on the rise during this period, and it’s almost evenly split between the ETH and BSC mainnets.
Why did you choose to integrate Swap API?
The most beneficial feature of Swap API for us has been how remarkably easy it is to integrate with DODO. Since 0x has integrated nearly all the mainstream liquidity sources in DeFi, including Sushiswap and Uniswap, it already supports the three major networks that DODO is deployed on, namely Ethereum, Binance Smart Chain, and Polygon.
As a result, our devs have a lot of work already done for them and are able to direct more of their efforts to developing what makes DODO unique.
It’s also critical for us that Swap API is very stable and responsive - qualities that are essential for any financial service. Both DODO’s frontend trading portal and DODO’s trading API use Swap API extensively. DODO's trading API is also an aggregator, which sources liquidity from several APIs, one of which is the Swap API, as well as DODO's own routing algorithm. The ability to compare prices from various liquidity sources at the same time gives DODO the ability to provide the best price quote to traders.
Do you have any advice for anyone considering building a DeFi app using Swap API?
The DODO team recommends going through Swap API’s official API specification documentation. It is an excellent resource and a great starting point for DeFi builders looking to leverage Swap API.
What’s next for DODO?
DODO is closely monitoring market trends and focusing on innovations that can help improve the quality of life for DeFi natives and provide access to financial services for all. Currently, we are working on optimizing our trading API and SDK, deploying onto more blockchain networks, researching the potential for limit orders, and developing the DODO NFT platform. Our team is actively hiring developers, marketing professionals, and community ambassadors.
Where can people go to learn more about DODO?
All the information you need can be found on the DODO website. It features a technical documentation section called ‘DODO Docs’ and a guide for beginners called the ‘DODO Dojo’. Everyone is welcome to join the DODO Discord and community forum to participate in discussions about the platform and to get involved with our social media presence on sites such as Twitter and Medium.
Thanks to the DODO team for chatting!