Since the inception of DODO v2.0, DODO’s trading volume and trader numbers have grown rapidly. Built on the flexible Proactive Market Maker algorithm (PMM), the DODO platform now supports a variety of use cases and features, including DODO Vending Machine, DODO Private Pool, DODO Classic Pool, and Crowdpooling, among others.
The DODO team is proposing the implementation of the DODO Booster program with the aim of attracting more high-quality projects to establish liquidity pools on the platform, as well as increasing user activity and trading volume to help build a sustainable community ecosystem going forward.
DODO Booster is a liquidity incentive program that rewards liquidity providers (LPs) with DODO tokens for project token pools that meet certain criteria.
The DODO Booster program provides well-defined incentives that encourage project teams to launch their project tokens on, or to migrate liquidity for their tokens to the DODO platform. This directly translates to a sustainable increase in DODO’s total value locked (TVL) and improved trading experience for existing users. At the same time, the Booster program can also allow and attract more people to learn about DODO’s innovative products and features and eventually become frequent DODO users.
1. Incentive Program
For each qualified project, its DODO Booster program shall run for four (4) weeks. Each week, the DODO team will allocate the equivalent of $7,500-$45,000 in DODO tokens as mining rewards.
The DODO team shall determine each week’s mining reward amount for the project token’s liquidity pool based on the pool’s trading volume for the week prior. These weekly reward adjustments are instituted to incentivize LPs to continue liquidity provision throughout the program period. More concretely, during the 4-week program period, the higher the trading volume for the liquidity pool for the current week, the more the liquidity mining rewards for the following week.
There are four (4) tiers of liquidity pools differentiated by their weekly/7-day trading volumes:
(a) Liquidity pool with a 7-day trading volume of < $5,000,000 will be allocated the equivalent of $7,500 in DODO tokens as the base reward the following week.
(b) If $5,000,000 ≤ liquidity pool’s 7-day volume < $10,000,000, the equivalent of $15,000 in DODO tokens will be allocated the following week.
(c) $10,000,000 ≤ liquidity pool’s 7-day volume < $15,000,000, the equivalent of $30,000 in DODO tokens will be allocated the following week.
(d) Liquidity pool with a 7-day trading volume of ≥ $15,000,000 will be allocated the equivalent of $45,000 in DODO tokens the following week.
Under normal circumstances, each project’s liquidity pool enters the DODO Booster incentive program with an initial mining reward of $7,500 in DODO tokens for the first week.
If a project token’s 7-day weekly volume remains below $5,000,000 throughout the 4-week incentive period, then the project’s liquidity mining bonus will remain at $7,500 in DODO tokens each week.
Example: A project (whose token is XYZ) establishes a XYZ/DODO liquidity pool on the DODO platform. In the first week, $7,500 worth of DODO tokens are distributed to the pool’s LPs based on the LP’s share. If the cumulative volume of the liquidity pool reaches $12 million in the first week, we will allocate the equivalent of $30,000 in DODO reward tokens in the second week. If the cumulative volume of the liquidity pool drops to $8 million in the second week, we will allocate the equivalent of $15,000 in DODO bonus tokens in the third week. If the cumulative volume of the liquidity pool reaches $15 million in the third week, we will allocate the equivalent of $45,000 in DODO bonus tokens in the fourth week.
Assuming LPs are contributing a total of $800,000 to the XYZ/DODO pool during the second week, the APY is [($30,000 / 7) * 365] / $800,000 ≈ 195.54%.
2. “Super Booster” Mode
Depending on the new project’s liquidity pool performance and contribution to ecosystem growth on DODO, an additional 2x to 3x liquidity mining bonus via the “Super Booster” mode may be applied during the incentive period. This added bonus will become effective the following week and last for one (1) week.
For new projects that debuted on the DODO platform with either a Crowdpooling campaign or DODO Vending Machine, it is possible for the Super Booster mode to be applied from the very first week of the incentive period. That is, up to $22,500 (3x $7,500) worth of DODO tokens may be allocated to LPs as initial rewards during the first week.
For projects that did not debut on DODO, the Super Booster mode may be flexibly applied on a case-by-case basis, based on the project’s trading data on DODO and its marketing proposals.
3. Joint Mining
The project team may also opt to provide tokens for liquidity mining. If the project’s application for DODO Booster has been approved, a joint mining campaign will be set up and LPs will be able to receive both reward tokens (DODO and the project token) when providing liquidity.
4. Applying for DODO Booster
The primary objective of DODO Booster is to encourage projects to establish their main liquidity pool on the DODO platform (i.e. its liquidity pool on DODO has the largest share of the token’s aggregate liquidity across all platforms). During its initial phase, DODO Booster shall lower the entry threshold appropriately to make onboarding projects easier. The DODO team will adjust the threshold as the program progresses.
If a project team has not yet issued its project token, it needs to meet any 2 of the following 3 conditions to be eligible to apply for DODO Booster:
- The project conducts an exclusive IDO on the DODO platform, or uses DODO as one of its initial IDO platforms (simultaneously with other platforms with the same start time).
- The project establishes its main liquidity pool (largest liquidity pool for the project token across all platforms) on either DODO Ethereum or DODO Binance Smart Chain (BSC).
- The project uses DODO as the fundraising token of choice when launching its Crowdpooling campaign on the DODO platform.
If a project team has already issued its project token elsewhere, it needs to meet any 2 of the following 3 conditions to be eligible to apply for DODO Booster:
- The project migrates its main liquidity pool (largest liquidity pool for the project token across all platforms) to either DODO Ethereum or DODO Binance Smart Chain (BSC).
- The project provides tokens for liquidity mining and allocates the majority of token rewards for LPs on the DODO platform.
- The project establishes a liquidity pool that pairs its token with the DODO token as a trading pair, i.e. a XYZ/DODO pool if the project token is XYZ.
DODO Booster’s list of basic application requirements is not exhaustive. During the initial phase of DODO Booster, the DODO team shall review and conduct due diligence on projects applying to enter the program. As the program matures and more projects onboard, new project applications will be reviewed and approved/rejected collectively by the community with a vDODO-based decentralized governance structure.
After a project has been approved for DODO Booster, the aforementioned four-week liquidity mining incentive program will be set up for the liquidity pool designated by the project team.
This concludes the DODO team’s proposal for the DODO Booster program. It is our hope and belief that it will help bring more projects and users to the DODO platform. Suggestions and comments from community members are always welcome and a governance vote on the proposal has been created on Snapshot. See below for more details on the vote.
Voting Period: 2 days, from April 17, 2021 at 11:00AM to April 19, 2021 11:00AM UTC+8 (Singapore time)
Voting Method: Users with both DODO tokens and vDODO tokens can vote via Snapshot (DIP-1: DODO Booster). 1 DODO represents 1 vote and 1 vDODO represents 100 votes. If you approve of the proposal, click “Approve”. If you disprove of the proposal, click “Reject” and consider posting your thoughts and alternative proposals to DODO’s community forum.
If the total number of votes reaches at least 2 million and “Approve” receives a majority of the votes, the DODO team will implement the proposal.