Try   HackMD

AVS Screening - DODOchain MACH

DODOchain MACH

Contract address: 0xd50E0931703302B080880C45148F5D83ea66aE2a
Website: https://www.dodochain.com/
Twitter: https://x.com/DODO_chain
Docs: https://docs.dodochain.com/
Blog: https://medium.com/@DODOchain
AVS Category: "Secured Network" (Layer 3, Trading Omnichain, Defi)
ETH Restaked: 208,285.487
Total Operators: 35
Total restakers: 61,600
Competitors: Omnichain Trading protocols
Mainnet Date: Apr-23-2024
Economic Security wanted:
Operator limits: None
Points program: None

AVS Description

DODOchain AVS is an innovative Omni-Trading Layer 3 platform that serves as a liquidity layer connecting Ethereum rollups and Bitcoin networks. DODOchain implements MACH (Modular Authenticated Consensus Hybrid) as its fast finality Actively Validated Service (AVS), leveraging AltLayer's restaked rollup framework and EigenLayer's restaking mechanism. This architecture combines Arbitrum Orbit for scalability, EigenLayer for modular blockchain scaling and security, and AltLayer's Rollup-as-a-Service to create a robust, efficient, and highly secure environment for cross-chain trading and liquidity consolidation. DODOchain MACH AVS offers fast transaction confirmations, crypto-economic security to detect malicious actors, and decentralized rollup state validation, addressing historical challenges in cross-chain bridges while providing a seamless trading experience across different blockchain ecosystems.

DODOchain AVS is evolving from DODO's DEX based on PMM (Proactive Market Maker), expanding its capabilities from a decentralized exchange active on 14 chains to an Omni-Trading Layer 3 platform (still in process). While DODO DEX focused on providing innovative liquidity solutions through its PMM algorithm and user-friendly tools for token creation and trading, DODOchain takes this vision further by addressing the challenges of fragmented liquidity across multiple chains.

Categorization

DODOchain is a Layer3, omnichain trading "Secured Network".

Unique Selling Proposition

DODOchain stands out in the decentralized finance landscape by offering advanced and user-centric solutions for trading and liquidity management. Compared to other DEXs, DODO DEX always stands-out with high capital efficiency. DODOchain also provides innovative tools and features that improve traders and liquidity providers operations.

  • Proactive Market Maker (PMM) Algorithm - DODOchain employs a proprietary PMM algorithm that adjusts liquidity pools more dynamically than traditional Automated Market Makers (AMMs). This approach helps in reducing impermanent loss and slippage, thereby increasing capital efficiency.
  • SmartTrade Swap Aggregator: The SmartTrade engine aggregates liquidity from multiple decentralized exchanges (DEXs) and DODO's own pools to provide the best swap rates for any crypto asset pair. This ensures favorable trading conditions for users.
  • Crowdpooling: DODO's Crowdpooling feature combines crowdfunding with liquidity pools, allowing users to initiate token offerings backed by liquid capital pools. This method prevents front-running and bot interference, ensuring a fair distribution of tokens.
  • Flexible Pool Management Tools: DODO offers tools such as the DODO Vending Machine and DODO Private Pool for creating and managing liquidity pools. These tools feature smooth price curves, one-sided deposits, and customizable price adjustments, providing users with comprehensive control over their assets.
  • Combiner Harvest Mining: This program incentivizes integration with the DODO ecosystem by rewarding liquidity providers with DODO tokens and proof of membership tokens, promoting participation and liquidity provision.

These points outline the distinctive features of DODOchain in decentralized trading and liquidity management (source).

Economic Model

DODO DEX team is in process of launching DODOchain, an Omni-Trading Layer3 powered by Arbitrum Orbit. As the rollup-level liquidity layer, DODOchain unifies liquidity from various chains into one platform, supporting swaps and cross-chain transactions. To boost Total Value Locked (TVL), user growth, and to attract future partners and support ecosystem development, the DODO team proposed migrating 200M DODO tokens to DODOchain. Additionally, it is proposed that future protocol revenues of DODO DEX be directed entirely to the DODO community treasury until new tokenomics are launched, at which point their allocation will be determined through governance and voting.

From DODOchain AVS perspective there are dual-token system (multi-token):

  • DODOchain already has own native token, DODO, launched by DODO DEX. According to DIP-18 proposal, DODO token will have incentive and value accrual utilities.
  • Protocol will adopt AVS Eigen Layer concept using AltLayer technology and its expected to implement dual-token mechanism (Restaked ETH and Restaked ALT)

DODO token - Initial Token Allocation:

Image Not Showing Possible Reasons
  • The image was uploaded to a note which you don't have access to
  • The note which the image was originally uploaded to has been deleted
Learn More →

(source: CryptoRank)

Points Program

N/А

Other Product Information

DODOchain currently dont have other products (DODO DEX has)

Builders

According to IQ.wiki, "DODO was founded by Diane Dai, Mingda Lei, and Qi Wang who have influence in China's DeFi community".

Backers

Investors: Binance Labs, Coinbase Ventures, SevenX, Framework, IOSG, Folium, Galaxy and Panthera. (source)

Partnerships: EigenLayer, Babylon, Arbitrum Orbit and AltLayer.

Centralization

Mainnet AVS Contract: 0xd50E0931703302B080880C45148F5D83ea66aE2a - address owner: 0x4e9bB2be300005A6dFd80645afa6be58c4F0A41B - 2/3 multi-sig
Multi-sig signers:

  • 0x834F78E947Aafbcb970087bD2acDd2476Bc3f216
  • 0x065A171B5812a31BDDb1c011273CadEda36fA81C
  • 0x5f17Ea23387fBAc3E939302D8Beee48f02c28dF7

Security

At the moment exist only security audits separately for:

  1. AltLayer MACH - PeckShield-Audit-Report-AltLayer-MACH-AVS-v1.0 and AltLayer-Mach-AVS-M2-Final-by-n-var
  2. DODO DEX - security page

Maturity

Mainnet date: Apr-23-2024

Operators Opt-Out

Documentation does not indicate a mandatory waiting period for operators who wish to opt-out.

Regulatory Complexity

Trading and liquidity management activities may subject DODOchain to heightened regulatory scrutiny. This could include increased oversight from regulatory bodies and potential complex compliance requirements.

Risk Considerations

Multisig, comprised of non-doxxed individuals, controls the AVS contract;

Last changed by 
 
YieldNestRisk
The YieldNest Risk Team, an independent risk service provider operated by Llama Risk.
0
90

Read more

BNB Chain Restaking Overview

1. About BNB Chain Binance Smart Chain was officially launched on September 1, 2020 as the public blockchain of Binance CEX. BNB Chain is a blockchain ecosystem designed to facilitate the adoption of Web3 technology by reducing barriers for users and developers. It provides a secure and efficient environment for decentralized finance (DeFi) and decentralized applications (dApps). As part of its ecosystem, BNB Chain offers several key components that enhance scalability, decentralization, and usability. Its low transaction fees and robust infrastructure make it an attractive platform for those looking to engage in blockchain-based activities. There are three core BNB Chain components: BNB Chain - is an EVM-compatible layer-1 blockchain known for its fast processing speeds and low transaction costs. It supports DeFi applications and smart contracts, providing users with a cost-effective alternative to other blockchain platforms. BNB Greenfield - is a decentralized storage network that focuses on providing decentralized data management and access and EVM programmability, to revolutionize the data economy by simplifying the process of storing and managing data. opBNB - is a high-performance optimistic rollup, layer-2 scaling solution for BNB built with Optimism OP Stack. opBNB has extremely cheap transaction cost around ~0.0001BNB. Together, these components create a blockchain ecosystem that addresses needs from DeFi and smart contract deployment to storage and scalability positioning BNB Chain as a comprehensive platform for Web3 development.

Nov 5, 2024
wOETH - Yield Nest Collateral Risk Brief

OETH on-chain liquidity is predominantly in Curve pools, to maintain its peg OETH utilizes an Automated Market Operations strategy (AMO) which expands and contracts supply of ETH and OETH depending on market conditions. Additionally the algorithmic market controller is used to optimize yield for OETH holders from LP reward. This creates a significant dependence on a single DEX. 2 centralized exchanges improve market depth (via MEXC and Poloniex) with both markets consistently facilitating a large proportion of daily OETH volumes.

Aug 30, 2024
sfrxETH - Yield Nest Collateral Risk Brief

Note: frxETH is exchangeable for sfrxETH by depositing into the sfrxETH vault. The exchange rate of frxETH per sfrxETH increases over time as staking rewards accrue.

Aug 30, 2024
wstETH - Yield Nest Collateral Risk Brief

As the market leader in the LST market, stETH and wsETH are widely available across DEXes such as Curve, Uniswap, Balancer, Pancake swap and Sushiswap. Liquidity on CEXes is equally diverse with availability on MEXC, Binance, Huobi, Crypto[dot]com, Coinbase and HitBTC among others. Multiple pools exist for liquidation on and off chain, according to DexGuru over a 30 day period (7/28/2024 - 8/28/2024) 7 DEX pools have had over $1M in liquidity. A >1% slippage would require an estimated swap size of $143.75M (47.3K stETH).

Aug 30, 2024
Read more from YieldNestRisk
Published on HackMD