Chinese decentralized exchange, DODO announced the completion of two funding rounds on the 12th of October. The private sale funding round was worth $5 million and was led by Binance Labs, Pantera Capital, and Three Arrows Capital and followed by Coinbase Ventures and Galaxy Digital.
The announcement read,
“Prior to DODO’s initial DODO offering (IDO), we mentioned two funding rounds we completed. Today, the team is pleased to share more details about our investors with the DODO community.”
Delighted to announce the $5M round (closed before the $DODO IDO) led by @PanteraCapital, Three Arrows Capital, @BinanceLabs, joined by Coinbase Ventures and Galaxy Digital. This round also includes seed investors @hiFramework and @DeFianceCapital.https://t.co/dLkvjwG7rH
— DODO DEX (@BreederDodo) October 12, 2020
According to the official blog post, other institutional investors include trading firms CMS Holdings and Alameda Research, and VCs Distributed Global, Primitive Ventures, D1 Ventures, IOSG Ventures, and LongHash Ventures.
The DeFi project is less than a year old and was reportedly developing a market-making algorithm dubbed “Proactive Market Making” [PMM]. This essentially incorporates elements from both Automated Market Making [AMM] and the centralized exchange’s order book and further seeks to offer lower slippage and cheaper gas fees.
The DODO team further revealed that the top priorities for the next six months are price oracle optimizations, on-chain institutional market-making strategies, trading experience, and efficiency, and self-serve and permissionless products for IDO projects.
Daina Dai, the Co-Founder of DODO, asserted that the capital inflow will be used to recruit, and develop products in the next 3 years.
Previously in August this year, the on-chain liquidity provider announced a $600,000 seed round which was led by Framework Ventures, a venture capital firm focused on blockchain-based technology solutions. DeFiance Capital, SevenX Ventures, Alexander Pack, Compound founder Robert Leshner, and CoinGecko founder Bobby Ong were other investors previously involved in the fund round.
According to DeFi Pulse, the total value locked in DODO was currently at $94.16 million, at the time of writing, while its trading volume over the last 24-hours stood at $15.824 million.
Despite the recent sluggish action in the DeFi space and the decline in traction of the once hyped yield farming space, many industry experts were optimistic about DODO’s future. Arthur Cheong, the Founder of DeFiance Capital, for one had earlier said,
I know it’s very cliche to say this. but the fundamentals are indeed improving daily for DeFi.
“Case in point, DODO’s TVL and volume been increasing despite the market condition and the muted yield farming environment.”