DeFi Project DODO Closes $5M Funding Round Led By Binance Labs
- The DODO DeFi project is developing a new market-making algorithm, said to incorporate elements from both AMM and the centralized exchange’s order book.
- With the newly-acquired funds, the firm will focus on increasing its organic trading volume, optimizing its price oracles, and other developments.
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Chinese-based DeFi project DODO has closed a $5 million funding round led by the venture arm of Binance, Binance Labs, the cryptocurrency exchange said in a blog post on 15 October.
According to the announcement, Binance supported the fundraising round as it was in line with its ongoing initiative to foster innovative DeFi and crypto infrastructure projects and startups. The $5 million funding round was co-led by Pantera Capital and Three Arrows Capital, and also saw participation from Galaxy Digital and Coinbase Ventures.
The co-founder of DODO, Diane Dai, said in a statement:
“We are delighted to be supported by our investors, who believe in the DODO vision of building an on-chain liquidity provider for everyone. Binance has been determined in its effort to bring DeFi to a much wider audience and we see a huge potential market emerging from the advent of the Binance Smart Chain (BSC).”
The decentralized project was unveiled back in August, when it successfully completed a $600,000 seed round with major venture capital firm Framework Ventures. The popularity of DODO could be accredited to its development of a new market-making algorithm called “Proactive Market Making”, or PMM. The new algorithm is said to incorporate elements from both the centralized exchange’s order book and Automated Market Making (AMM), which is used by protocols such as Uniswap, Curve and Balancer.
The newly-acquired $5 million will be used to expand the DODO team, and to further develop new products over the course of 3 years. The firm will now also focus on increasing its organic trading volume, optimizing its price oracles, and on other crucial developments such as enhancing its market making strategies and more.
Similarly to other DEXs, DODO also launched a native exchange governance token, dubbed DODO, which were put on the DODO Exchange through an Initial DODO Offering (IDO). At the time of its launch, 29 September, 1% of the total DODO token supply was locked so the firm could provide initial liquidity. The firm also promised not to deposit or withdraw any additional DODO or USDT from the liquidity pools.
- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
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- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.