Cryptocurrency derivatives exchange Binance Futures has announced the launch of a new perpetual contract for DODO, a decentralized finance (DeFi) protocol and on-chain liquidity provider. The DODO/USDⓈ perpetual contract will be able to be traded with a maximum leverage of 20x as of 15:00 on August 8, 2023.
DODO is a DeFi protocol that aims to offer better liquidity and price stability than automated market makers (AMMs) using a unique proactive market maker (PMM) algorithm. The PMM algorithm mimics human trading behavior and uses oracles to collect accurate market prices for assets.
It then provides sufficient liquidity near these prices to stabilize the liquidity providers' (LP) portfolios, reduce price drift, and eliminate temporary losses by allowing arbitrage trading as a reward.
DODO also caters to new crypto projects with a free initial DODO offer (IDO) protocol that requires issuers to deposit only their own tokens. DODO's smart contract runs on the Ethereum network as an ERC20 token.
After the development, the DODO price started to move and a sudden increase was observed.
*Not investment advice.