The new stable token, worth “exactly $1 USD,” has been developed to serve as a new base asset for the DODO community that will “keep more value locked in the platform, while increasing liquidity and lowering transaction costs for users on the DODO Exchange.”
In order to launch Stable DODO, DODO is teaming up with ICHI, which is reportedly the first Decentralized Monetary Authority (DMA) protocol. DODO intends to establish new liquidity pools using Stable DODO.
Stable DODO, which may be minted with a “blend” of DODO and USDC, may be used by the DODO Exchange to “benefit its users.”
The update also mentioned that DODO will “offset transaction costs by providing large liquidity incentives, giving users the ability to provide liquidity and earn.”
These incentives will “drive further user adoption and help make DODO continue to grow as one of the leading Automated Market Makers (AMM) in DeFi,” the announcement explained.
Diane Dai, Chief Marketing Officer at DODO, stated:
“OneDODO provides users the ability to collect liquidity incentives, while also benefiting the entire community by creating a stable asset that locks more value in DODO as it is minted. This is the opposite effect of stablecoins that remove value from DODO as they are minted. OneDODO is the first stable asset that truly aligns the interests and incentives between the whole DODO community.”
Stable DODO offers all of the benefits of other stablecoins while “keeping value locked in the DODO community. Minting Stable DODO tokens increases demand for and value of $DODO,” the update noted.
Beyond offering liquidity for the DODO Exchange, Stable DODO may also be “used as a reliable unit of exchange to pay business expenses and for other DeFi transactions,” the announcement added.
As stated in the update:
“ICHI’s protocol, which is fully audited by Quantstamp, has already been utilized to create stable assets for numerous crypto projects including Filecoin, 1inch Network, Fuse Network, 88mph, PERL, and Wing Finance. To learn more and read ICHI’s whitepaper, visit docs.ichi.farm.”
As mentioned in the announcement, DODO is a decentralized exchange platform “powered by the Proactive Market Maker (PMM) algorithm.” It features “highly capital-efficient liquidity pools that support single-token provisions, reduce impermanent loss, and minimize slippage for traders.”
The trading platform provides Crowdpooling, which is “a permissionless, equal opportunity liquidity offering mechanic, as well as customizable technical solutions geared towards professional on-chain market makers.”
As noted in the update, ICHI aims to tap into “the full potential of the crypto economy by enabling any cryptocurrency project to create and control its own stable asset worth exactly $1 USD.”