Other investors in the China-based firm include DeFiance Capital, SevenX Ventures, Alexander Pack, Compound founder Robert Leshner and CoinGecko founder Bobby Ong among others.
DODO said it's been moving quickly to release a solution it believes could "revolutionize" on-chain liquidity by using an alternative to automated market-making (AMM). The Proactive Market Marker (PMM) algorithm, originally conceived in April, uses a formula that mimics human market makers. Co-founder Diane Dai told Decrypt that this is more efficient than AMM since it allocates funds near market price. The team iterated on a proof of concept for PMM across May before completing the smart contract development and auditing the project in July, according to the startup.
The exchange touts lower slippage than competitors due to its use of PMM. On August 15, it rolled out a pilot and has since claimed that initial data from the campaign shows that its project can provide better trade execution than Uniswap with 1/10th the pooled capital, sustaining a 40% APR return for liquidity providers.
The firm plans to use the funding to further iterate on the project and help DODO on its road to true decentralization. In the coming quarter, it plans to list additional trading pairs, integrate with wallets and aggregators, support Binance Smart Chain and issue its own DODO tokens.