Grey Parrot Attack! Chinese DEX platform DODO launches a 21-day inaugural liquidity mining event.

The highly anticipated Chinese decentralized exchange platform DODO announced today (1st) the launch of the first phase of liquidity mining under the code name "Grey Parrot." The mining activity will last for 21 days, with an expected distribution of 1,050 DODO Tokens to liquidity providers.

DODO Launches Liquidity Mining

DODO, a decentralized exchange platform built on the Proactive Market Maker (PMM) algorithm, announced the launch of the first phase of a 21-day liquidity mining incentive program. According to the announcement by DODO, in the first phase of the mining activity, the platform will reward 1%-1.5% of the total DODO Token supply, starting from block 10,772,000 and continuing for 140,000 blocks (approximately 21 days, releasing 500,000 DODO Tokens daily).

Currently, DODO has opened five trading pairs: ETH/USDC, LINK/USDC, LEND/USDC, SNX/USDC, and COMP/USDC, each with two assets. DODO utilizes a single-sided liquidity mechanism, meaning participants have 10 DLP pools to choose from, with each pool receiving a fixed reward of 7.5 DODO Tokens per block. This implies that participants must choose pools with the least funds to maximize mining rewards.

New pools for upcoming trading pairs will receive new DODO Tokens as rewards. However, it is important to note that the tokens earned through mining will not be immediately released but will unlock after 14 days of IDO (Initial DEX Offer) and linearly unlock over a period of 6 months.

The total supply of DODO tokens is 1 billion, and the distribution of the tokens is as shown in the following diagram:

Highly Anticipated Chinese DEX

DODO initiated beta testing on August 15 and opened to the public on August 25, gradually adding new trading pairs. During this period, DODO has proven to have lower slippage compared to competitors like Uniswap.

Unlike many trading platforms using Automated Market Maker (AMM) protocols, one of DODO's distinctive features is its use of a new mechanism called Proactive Market Maker (PMM) protocol. In essence, the PMM protocol employs an algorithm that mimics the behavior of human market makers, effectively allocating funds based on market prices to enhance liquidity and reduce slippage. Diane Dai, co-founder of DODO, claims that data from the August 15 beta test shows that DODO's trading execution surpasses that of Uniswap, with a liquidity pool only one-tenth the size of Uniswap's, providing liquidity providers (LP) with a 40% APR return (without any liquidity mining rewards). Additionally, DODO's smart contracts have been audited by the well-known blockchain security firm PeckShield (audit report).

Notably, last week DODO secured a $600,000 seed round led by Framework Ventures, marking the first investment in China by the company. Other prominent investors include Compound founder Robert Leshner, Coingecko founder Bobby Ong, Spartan Capital's Jason Choi, and DTCCapital's Spencer Noon.

Framework Ventures is a reputable venture capital firm in the market, having previously invested in well-known projects such as Chainlink, Aave, and Synthetix.