- DODO is about to launch on Arbitrum, and believes that Arbitrum will surpass folks’s expectations.
- Whereas initially, liquidity shall be unfold between layer 2’s and sidechains like Polygon or BSC, if layer 2 delivers it would ultimately prevail.
- The current droop in DeFi costs hasn’t affected most initiatives as all of them have greater than sufficient funds to proceed constructing the way forward for finance.
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In an interview with Crypto Briefing, the founder and CEO of DODO change Lei Mingda talks Arbitrum, scaling Ethereum, Polygon, BSC, Three Arrows Capital, concentrated capital, and the way forward for DODO in a multichain world.
Onboarding Hundreds of thousands to Layer 2
DODO is a decentralized change that pioneered concentrated liquidity, the important thing characteristic of Uniswap v3, again in August 2020. The change achieves concentrated liquidity by a proactive market maker algorithm that mechanically allocates funds to a sure vary dynamically, attaining a lower cost influence on transactions with much less vital liquidity in DODO’s swimming pools.
The twist of the proactive market maker is arguably among the best benefits DODO has over the cut-throat competitors for liquidity between decentralized exchanges. Whereas Uniswap‘s v3 concentrated liquidity characteristic will depend on customers shifting their liquidity, DODO does it mechanically across the related worth vary. As shifting liquidity may be costly, DODO’s computerized system favors smaller customers.
Whereas this characteristic has been built-in into the change since its launch, future updates for DODO inform us rather a lot in regards to the basic path of DeFi for the second a part of 2021. Excessive on the agenda for many DeFi protocols, together with DODO, is bringing their protocol to layer 2 scaling options like Arbitrum. The change’s CEO Lei Mingda has loads of optimistic issues to say about Arbitrum.
“Layer 2 works even higher than I anticipated. Arbitrum is a superb venture and a group with a stable background. That doesn’t imply there received’t be points at launch although, however the product is prepared and works properly,” stated Lei. “The rationale why they haven’t opened it to the general public is that they need every little thing to be prepared and examined earlier than Arbitrum turns into out there to the general public.”
DODO’s Multichain Future
DODO was additionally one of many first exchanges to port their protocol on Binance Good Chain. BSC has been having an advanced few months because it first introduced tens of millions of customers to the community, utilizing DeFi and Ethereum Digital Machine. In relation to layer 1, DODO is chain agnostic. Its technique has been following the person exercise, which has led to the implementation of the protocol on ETH, BSC, and Polygon.
“Binance Good Chain is a crucial accomplice of DODO, however its fame has taken successful just lately. The largest downside is Binance’s “transfer quick break issues” type, which has led to nice progress when the chain wasn’t actually prepared and battle-tested,” says Mingda. “Now they’re paying for that.”
One of many key reveals of energy for DeFi within the coming months would be the duel for liquidity between sidechains like Polygon or BSC and true layer 2 like Optimism or Abritrum. Whereas the primary two have already got established person bases, true layer 2 will profit from higher safety by straight leveraging Ethereum’s fundamental chain safety.
“Sidechains have developed robust userbases so brief/mid-term there’s going to be a break up between these two options. Ultimately, if L2 delivers, that’s the place the cash will go,” predicts DODO’s CEO. “Splitting capital round completely different chains is an issue, however that is one thing DODO’s market maker algorithm is completely suited to, because it makes up for decrease liquidity.”
State of DeFi
Mingda additionally had attention-grabbing phrases of knowledge relating to the current downward worth trajectory of DeFi tokens. Between February and Might, DODO’s token traded round $4. In the present day, the token adjustments hand barely above $1. When requested about it, Mingda appeared extra amused than frightened.
“We don’t care about that, and we are able to inform you different initiatives don’t care both. We’re too busy constructing to care about secondary market costs. DeFi tokens crashing is a really regular phenomenon that has occurred many instances earlier than,” he assured. “All of the DeFi groups have greater than sufficient money to proceed constructing and we shouldn’t fear in regards to the business.”
Certainly, the change has the posh of being backed by Three Arrows Capital, one of many foremost funding funds within the crypto area. The change enjoys biweekly calls with founding companions Su Zhu and Kyle Davies, two veterans of the crypto area who can correctly advise DODO’s progress.
Disclaimer: The writer held ETH and a number of other different cryptocurrencies on the time of writing.
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Onboarding Millions on Layer 2 Solutions: Interview with DODO Founder | Crypto Briefing