DIP-19: Migration of DODO Liquidity Pool on Ethereum to DODOchain

Summary

Following the launch of the DODOchain mainnet, DODO DEX will leverage DODOchain and DODO Trade Hub to evolve into an Omni Trading DEX. To facilitate this growth and meet the demand for exchanging DODO tokens with multi-chain assets, we propose to close the DODO liquidity pool on Ethereum and migrate it entirely to DODOchain. This migration will enable users to contribute liquidity to the DODO pool on DODOchain and earn token incentives as liquidity providers.

Motivation

DODO DEX currently boasts a trading volume exceeding $143 billion and a user base of over 3.4 million. The deployment of DODO DEX on the DODOchain mainnet will introduce liquidity incentives aimed at increasing the Total Value Locked (TVL) and expanding our user community. Our goal is to attract TVL and users from DODO DEX across various chains to DODOchain by offering incentives and other benefits, thereby stimulating its growth. Ensuring sufficient liquidity for trading post-migration, especially after the allocation of DODO token incentives, is essential.

The primary liquidity pool for DODO tokens on the Ethereum network is the DODO-USDT pool, established on September 29, 2020. It has generated over $600 million in trading volume and accrued more than $1.91 million in fees. Managed by a DODO team’s multi-signature address, this pool will be transferred to DODOchain upon approval of this proposal and the subsequent launch of DODOchain.

The migration of the DODO liquidity pool from Ethereum to DODOchain offers several advantages:

  • Meets the exchange needs of DODO holders on DODOchain.
  • Facilitates the exchange of DODO tokens with assets across multiple chains, such as the direct trades of DODO for BTC ecosystem assets.
  • Provides liquidity providers the opportunity to earn additional token incentives and capture increased fee income.
  • Potentially increases DODO holders’ share of platform fee revenue (contingent upon future governance votes and the adoption of a new tokenomics and fee distribution mechanism within DODO DEX).

Rules

We recommend migrating the DODO liquidity pool from Ethereum to DODOchain to better serve the trading needs of DODO holders on DODOchain, enhance the ability to trade DODO tokens with multi-chain assets, and increase income opportunities for DODO liquidity providers and holders.