Decentralized exchange platforms are a virtual platform that connects buyers and sellers directly without any intermediary. The platform is based on blockchain and the Ethereum network.
The buyers and sellers need to have cryptocurrency for trading on these platforms. DODO and PancakeSwap are the two latest decentralized exchange platforms that compete successfully in the trading market.
Key Takeaways
- Dodo is a decentralized exchange platform that offers users a customizable trading environment. At the same time, Pancakeswap is a decentralized exchange platform built on the Binance Smart Chain that allows users to trade cryptocurrency tokens.
- Dodo’s liquidity pools use the Proactive Market Maker algorithm to ensure that trading pairs remain balanced, while Pancakeswap uses an automated market maker (AMM) algorithm.
- Pancakeswap has lower transaction fees than Dodo, but Dodo offers a more customizable trading experience.
DODO vs PancakeSwap
The difference between DODO and PancakeSwap is that the Proactive Market Maker algorithm powers DODO, while the PancakeSwap is powered by Binance Smart-Chain using the Automated Market Maker model. DODO runs on Ethereum and Binance smart-chain, while PancakeSwap runs on PancakeSwap and Binance smart-chain. DODO reduces the risk of impermanent loss, but PancakeSwap has a risk of impermanent loss in some situations.
DODO is an open-source, decentralized exchange platform where digital assets are traded directly between buyers and sellers. The platform is a leading on-chain liquidity platform powered by the Proactive Market Maker (PMM) algorithm.
The algorithm provides accurate market prices of assets to reduce spillage and temporary losses in trading.
On the other hand, PancakeSwap is a decentralized platform based on a food theme where digital assets and CAKE tokens are traded to win profits and rewards and participate in other lottery events.
It is based on an automated market maker algorithm (AMM) to exchange BEP-20 tokens. It provides facilities like low trading fees, fast transactions, lotteries, and rewards and supports various wallet applications to ease trading initiation.
Comparison Table
| Parameters of Comparison | DODO | PancakeSwap |
|---|---|---|
| Launched on | DODO platform entered the market in August 2020. | PancakeSwap platform entered the market in September 2020. |
| Powered by | Proactive Market Maker (PMM) algorithm | Binance smart-chain using automated market maker (AMM) |
| Token name | ERC-20 | BEP-20 or CAKE token |
| Benefits | Capital efficient, reduce spillages, minimize impermanent losses, and supports single token distribution | Easy to use, faster and cheaper transactions, interconnectivity, privacy, and security. |
| Features | DODO private pool, crowd pooling, mining, and NFT vault. | Syrup pool, yield farming pool, lottery, and NFTs. |
What is DODO?
DODO is one of the decentralized exchange platforms launched in August 2020 by an anonymous team; two of them are Diane Dai and Radar Bear. It is run by the Proactive Market Maker (PMM) algorithm.
It is a trading platform based on on-chain liquidity exchange that increases capital efficiency.
Some of this platform’s features are capital-efficient liquidity pools, support single token distribution, and reduce the occurrence of spillage in trading and temporary losses to the traders.
The other facilities provided to the traders are contract-fillable liquidity and discovering the prices by comparing other trading sources.
The Proactive Market Maker (PMM) algorithm retrieves accurate market prices of each digital asset for the traders to bid on assets effectively. The DODO charges minimum fees on each transaction but then returns them to the traders as rewards.
It is an open-source smart contract where traders can offer assets for free to begin trading. The user has to deposit tokens without the need to quote tokens. The more the user deposits tokens, the more will be the liquidity.
The platform has various wallet applications integrated to help users interact and earn tokens from other platforms.
The gained tokens can be distributed through crowd pooling, manage marketing strategies through DODO vending machines or private pools, participate in mining projects, and gather prices of assets in the market.
What is PancakeSwap?
PancakeSwap is another leading decentralized exchange platform that was started by Binance smart chain in September 2020. It is developed by an anonymous developer’s team and based on an automated market maker algorithm (AMM).
The platform is based on food themes like UniSwap, and SushiSwap liquidity protocols built on the Ethereum network. It is mainly developed to swap or exchange BEP-20 tokens.
The users are individual traders, and no intermediary or order book will be maintained on the platform. The user has to deposit the funds in the liquidity pool and receive liquidity tokens that can be used to reclaim the shares and trading fees in return.
The platform also gives rewards to the traders under the farming section, where the users can earn CAKE tokens. The CAKE tokens can be used to stake in the SYRUP pool to earn more rewards.
Many other rewarding events are available on the platform, such as lottery events, NFTs, and CAKE pools. The Initial Farm Offering (IFO) helps the users to get newly launched tokens using yield farming.
PancakeSwap has become a tough competitor to the existing decentralized exchange platforms like UniSwap, and SushiSwap. It is safe, easy to use, gives users access to new tokens, and is more cost-effective than other digital trading platforms.
It does not require users to fill in their data and maintain privacy. It supports various wallets such as Trust Wallet, MathWallet, TokenPocket, WalletConnect, and others.
Main Differences Between DODO and PancakeSwap
- DODO is a decentralized platform launched in August 2020. PancakeSwap is also an online platform launched in September 2020.
- The DODO trading platform exchanges digital assets by converting them to ERC-20 tokens, while the PancakeSwap is built specially to swap BEP-20 tokens.
- DODO is powered by the Proactive Market Maker (PMM) algorithm, but PancakeSwap is powered by the Binance smart chain using Automated Market Maker (AMM).
- DODO reduces impermanent losses and spillages in trading, but PancakeSwap users incur impermanent losses in some situations.
- DODO is cost-effective and provides accurate prices of assets in the market. On the other hand, PancakeSwap is easy to use and provides a chance to earn more rewards through the SYRUP pool and lottery events.
Last Updated : 17 August, 2023
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Sandeep Bhandari holds a Bachelor of Engineering in Computers from Thapar University (2006). He has 20 years of experience in the technology field. He has a keen interest in various technical fields, including database systems, computer networks, and programming. You can read more about him on his bio page.
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