Binance Labs Leads $5 Million Investment Round in DeFi Startup DODO
Continuing our commitment to supporting blockchain solutions that advance the freedom of money, Binance Labs recently provided financial backing for liquidity provider platform DODO.
DODO is based on a nascent protocol that leverages the Proactive Market Maker (PMM) algorithm to provide a pure on-chain and contract-fillable liquidity for everyone. The DODO Exchange is a capital-efficient, low-slippage decentralized exchange platform capable of adopting flexible market-making strategies on-chain. DODO is the first Chinese-based decentralized finance (DeFi) startup backed by Binance Labs.
“Via its innovative PMM algorithm, DODO is bringing a more sustainable and user-friendly DeFi product to the market by increasing capital utilization and mitigating the impermanent loss,” said Binance CFO Wei Zhou. “DODO has been one of the early active supporters of Binance Smart Chain (BSC). With the DODO’s efforts on BSC, we are looking forward to their developments in bringing better decentralized exchange (DEX) experiences and its DeFi product offering on BSC, which will help to lower the entry barrier for more CeFi users into a broader liquidity market.”
This round of funding is part of Binance Labs’ ongoing initiative to support and foster innovations in DeFi and crypto infrastructure projects and startups. This funding round is co-led by Pantera Capital and Three Arrows Capital and joined by Coinbase Ventures and Galaxy Digital.
“We are delighted to be supported by our investors, who believe in the DODO vision of building an on-chain liquidity provider for everyone,” said Diane Dai, co-founder of DODO. “Binance has been determined in its effort to bring DeFi to a much wider audience and we see a huge potential market emerging from the advent of the Binance Smart Chain (BSC).”
The DODO team has been learning from other DEXs and looking to forge its own path. Diane believes that while liquidity mining was an incidental experiment that surprisingly brought DeFi to a much wider audience, they must also understand the necessity of algorithmic liquidity to DEXs. “The DODO mission statement is to make fully permissionless and flexible trading and market-making on-chain a reality,” said Diane.
As one of the first DeFi projects deployed on BSC, the DODO team sees a large potential demand from new asset issuers looking for a highly efficient, low-cost marketplace. The DODO team hopes its collaboration with BSC will empower them to explore and expand into larger markets. “The permissionless Initial DODOEX Offerings (IDO) product we will be building is expected to deploy to BSC in order to organically bring more volume and users into the ecosystem,” said Diane.
Learn more about DODO by visiting https://dodoex.io/.