The crypto collectible hype is showing no signs of slowing down. The latest to jump aboard the non-fungible token (NFT) bandwagon is the DODO decentralized exchange.
The Chinese-based DODO exchange is one of the first to launch novel NFT collecting and trading features. In addition to the NFT vaults, announced on March 24, is a Raptor Program which provides additional “trade mining” rewards.
Powered by its Proactive Market Maker (PMM) algorithm, the DODO NFT represents a new pricing and liquidity solution for the NFT marketplace.
Fragmenting NFTs
According to the announcement, DODO’s pools will enable NFT fragmentation. This involves breaking down an artwork or a collectible into a number of smaller pieces to allow shared ownership. After all, not everyone can afford a $69 million Beeple.
In contrast to current liquidity models that require collateral to get them started, the DODO NFT pricing curve can be set for free;
“With DODO NFT, you can proactively set the starting price for a fragmented token for free (well, except for the gas fee) and without committing any capital.”
The system uses the DODO NFT Vault. It can store a variety of assets such as video, images, art, music, or game items. The vault value increases as more NFTs are added and the fractions are represented as regular fungible tokens.
The team added that the NFT will be launched in the second quarter and smart contracts are already under development.
The Raptor Program, announced on March 26, is a trade mining incentive program specifically targeting new, popular tokens. Just like rival BSC exchange PancakeSwap, DODO has a large number of mostly useless tokens listed purely for liquidity provision.
The first DODO Raptor Program will go live with Tidal Finance’s TIDAL tokens. This will be a 14-day trade mining campaign, it added. As opposed to liquidity mining, trade mining earns rewards by simply trading the tokens, there is no need to deposit collateral into liquidity pools.
The rewards for this incentive will be 16,666 BEP-20 DODO tokens.
DODO Price Update
At the time of press, DODO was trading up 5.6% on the day at $4.27 according to CoinGecko. The DEX governance token gained 35% since opening at $3.18 on March 26.
Token prices spiked to an all-time high of $8 on Feb. 20 but have lost around half of that since. In terms of TVL, DeFi Pulse reports a figure of $63 million.
The DODO DEX was exploited for almost $2 million in early March.
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