[Research Note] DODO’s IDO and Cresco
Note：This is an info doc and does not relate to our investments.
DODO is a new DEX which offers an algorithmic improvement on AMM, called Proactive Market Making, PMM.
The key ideas are:
The maths behind it is explained here: https://medium.com/dodoex/dodo-a-revolution-in-on-chain-liquidity-7bc339b9d391
One of the applications is for projects to raise funds, by offering ONLY its tokens and not any other funds in the DODO DEX, called IDO. Part of it is to set a fixed price for the token instead of reading a price from an oracle.
There’s a live case of IDO on 30 Nov 2020, https://crescofin.ch/ CreSco Finance. CreSco claims it’s the first Swiss regulated token that legally represents shares in a company. CreSco offers investors (of its products) better-than-bank returns, and it does so by discounting invoices from credible companies. The description of the business is here. The business itself is no innovation.
It offers its shares, in a wrapped version, wCRES, at $1, via DODO. Its blog and discord channels host a lot of information. Most are marketing hype. But the key messages are here:
The token offer’s details.
And how tokens are created legally and on chain:
The etherScan detail of the wCRES contract:
The underlying of wCRES is CRES, for owning which, one has to initiate a KYC process. The token address is: https://etherscan.io/token/0x81df9efb1e970517ff5b32c2f485f791f3410164
The top 10 holders of CRES, as of 2pm UTC+8, 30 Nov 2020. The 2nd one is the wCRES, which will be deposited to DODO, Balancer, and Uniwap soon.
In the discord, the team gave the DODO contract for its offering: https://etherscan.io/address/0x85f9569b69083c3e6aeffd301bb2c65606b5d575#code
And other key messages:
By looking at the graph above, the k for the IDO is above 0.9 .
Plus, we also found that Balancer team has made an official calculator:
Plus, the IDO is front-run by a bot: https://etherscan.io/address/0x1af03aea38c7f9059f1388905fd4f789e5ce6e20#tokentxns but it did not hurt people from making some money if they got in early enough. The model of IDO is very prone to front-run and how to deal with it is still a major DODO area of improvement.
(Serenity Team, 1 Dec 2020)