DIP-21: Migration of 20 Million DODO Tokens to Base Mainnet for Future Incentives

Abstract

DIP-21 proposes migrating and allocating 20 million DODO tokens to the Base Mainnet to be used for future trading incentives. These tokens aim to attract more users to DODO as an aggregator and boost protocol revenue.

Motivation

DODO has been deployed on 15 public chains to date. However, deployment alone is insufficient to capture potential users and their trading volume. To better harness the value within these networks’ ecosystems, we propose migrating tokens and launching incentive campaigns.

Among Layer 2 solutions, Base distinguishes itself with EVM compatibility, low gas fees, scalability, and integration with the Coinbase ecosystem. The Total Value Locked (TVL) on the Base Mainnet has surpassed $1.6 billion, with daily trading volumes exceeding $600 million.

Integrating DODO into the Base ecosystem will allow users to benefit from DODO’s innovative Proactive Market Maker (PMM), offering highly capital-efficient liquidity pools, SmartTrade, and other features.

Token incentives effectively attract liquidity providers (LPs) and boost trading volumes for protocols in the growth phase. Providing DODO tokens as incentives on Base would significantly increase the number of DODO token holders, fostering substantial growth for the DODO community.

Summary

If DIP-21 is approved, the DODO protocol will migrate 20 million DODO tokens to the Base Mainnet and launch a new trading campaign with DODO rewards.