• Can it support unilateral deposit and withdrawal?

• Can the price curve be changed at any time;

• Can the price be distributed from zero to infinity.

Then DODO Private Pool is the most suitable product for you. It's an extremely flexible product that meets the needs of professionals, yet is easy to use.

As we mentioned before, the PMM algorithm is a compressed version of Orderbook, which retains the flexibility of Orderbook to the greatest extent while being easy to understand, lightweight and cheap.

Specific reference article "Five minutes to understand the PMM algorithm behind DODO: a general liquidity framework and multiple use cases". DODO Private Pool is the product that demonstrates the flexibility of PMM. We use a depth map to show the status of DODO Private Pool and which Use Cases it can realize.

Use Case 1 to avoid downside risk:

• Buy it yourself - a lot of money is required;

• Reduce the size of the capital pool - liquidity becomes poor.

Neither option is satisfactory. This is because, within the AMM framework, you do not have the power to actively discover prices. But DODO Private Pool allows you to directly adjust the market median price. Let your professional ability get its due return, and it is also a more efficient price discovery.

Use Case 3 Constant Price Market:

Set k=0, that is, it can be exchanged at a constant price. For example, you issued a new stable currency X, anchored to USDT. A certain amount of USDT can be prepared as a reserve, and a large number of tokens X can be provided to establish a stable currency 1:1 exchange market. You can also set k to a very small value, such as k=0.001, so that you can get a curve-like "approximately constant" price curve.

Use Case 4 degenerates to AMM:

Set k=1, and recharge the two tokens at the ratio of price i, you can get a market with the same performance as AMM.

Use Case 5 Market Value Management Requirements:

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the math behind

DODO Private Pool uses the PMM algorithm, but all parameters in it can be manually modified by the owner. This algorithm does not require any proportional relationship between the two stocks (BaseToken and QuoteToken) and has very strong flexibility:

• If k=0, it degenerates into a constant price model;

• If k=1, it degenerates into AMM;

• If k is a small amount close to 0, it degenerates into a curve.

PMM Pricing Formula

This PMM price curve is drawn according to the following pricing formula:

The value of R is derived according to the following formula:

Here, B and Q are token balances in the contract; k, i, B0, and Q0 can all be set by the pool creator.