- DODO has always aimed to be the most efficient on-chain liquidity provider
- It is a platform that allows for standard asset trading, pricing, asset issuance, liquidity pools, and Crowdfunding fundraising
- DODO NFT, market discovery, and liquidity protocol for non-standard properties, are being introduced by the DODO team
- It represents a brand new pricing and liquidity approach for the non-fungible token (NFT) marketplace
- Driven by the Proactive Market Maker (PMM) algorithm
Effective Market Liquidity and NFT Fragmentation
A highly active and effective secondary market may be created by splitting NFT, a group of NFTs (e.g. a collection of works by one creator), or even several groups of NFTs (e.g. numerous NFTs belonging to various genres and categories) into smaller parts as fungible tokens, similar to how company securities are distributed.
This principle of NFT fractionalization has been discussed before; but it has never been implemented to any significant degree, owing to the difficulties in obtaining and retaining adequate liquidity for the NFT secondary market. Skilled market makers, alternative market makers, and pool 2 yield farming have both failed to provide sufficiently cost-effective liquidity to keep such a market afloat in the long run. That is until DODO’s pool function is released! You can get a lot of liquidity without investing a dime with DODO pools.
This is in distinction to other liquidity systems, which either base prices on the amount of capital provided by liquidity suppliers or only endorse a single, primitive price curve. You can set the starting price for a fragmented token for free and without investing any capital with DODO NFT. You will have complete leverage over business depth and the ability to customize and change the price curve.
The DODO NFT Design’s Highlights
The DODO NFT Vault, which is essentially a repository for storing various NFT artifacts and collections on the blockchain, is at the heart of the DODO NFT architecture. This Vault has been split to give you access to all of the advantages of fractional ownership.
1. The DODO NFT Vault can store a variety of assets- including Any type of NFT, such as a vlog video, a collection of rare game pieces, a singer’s albums in chronological order, or even a series of photo albums, can be stored in a DODO NFT Vault. By constantly adding assets to the DODO NFT Vault, the overall value of the DODO NFT Vault would increase as well, and it can also be used as a fund for an investor or an entity.
2. Zero-cost liquidity markets: DODO NFT provides a low-barrier-to-entry way for you to create liquidity markets for tokens that reflect fractional ownership of NFTs, enabling market participants and speculators to participate directly in the price and value discovery process.
3. Flexible trading fee-sharing: DODO NFT takes advantage of DODO pools’ customizability, which allows for a wide range of trading fee collection, sharing, and distribution options. The widely available version of DODO NFT would implement an equal fee-sharing model, ensuring that both the maker of the Vault and traders profit from being a part of DODO NFT.
4. Highly flexible and composable: On the one hand, the DODO NFT Vault has been fragmented into fungible tokens (FTs), which can now be openly exchanged on centralized and decentralized cryptocurrency exchanges (e.g. DODO). Lending protocols, derivatives trading, and a variety of other situations may all benefit from these FTs. On the other hand, the DODO NFT protocol is highly extensible, and more financial use cases for these FTs will be added in the near future.
DODO NFT will go live in Q2 2021, giving everyone the chance to start a business on the blockchain. The DODO team is excited about the prospect of enabling users to issue all sorts of tokenized assets and transform their business concepts into practice on-chain, and smart contract creation is already well underway.