DODO, an on-chain liquidity provider, announced its strategic partnership with Steer Protocol, a decentralized compute protocol. This collaboration brings together two crucial components for the development and efficiency of DeFi, integrating DODO’s proactive market maker (PMM) technology into Steer’s automated liquidity management infrastructure.
This partnership is set to advance liquidity management in DeFi, creating smarter, AI-focused strategies that enhance capital efficiency and improve profits for liquidity providers across multi-chain ecosystems.
Collaborating for smarter liquidity management
Steer Protocol, a major decentralized off-chain compute protocol, streamlines the development and scaling of data-driven, omni-chain applications on Web3 networks. Its strong infrastructure provides developers with the ability to automate smart contracts using real-world data and develop data-driven automation. Using this technology, Steer helps to efficiently create new DeFi applications, including liquidity renting, trading, lending, perpetuals, options, liquidity management, and many more.
On the other hand, DODO is a decentralized network and on-chain liquidity provider that leverages a PPM (proactive market maker) algorithm to provide better liquidity and price stability than conventional AMMs (automated market makers).
By integrating Steer Protocol’s ALM infrastructure and AI-driven automation, DODO brings the precision and adaptability required for sustainable market-making to its ecosystem. This integration empowers DODO to optimize liquidity across multi-chain deployments. Also, through this approach, DODO improves its abilities with real-time, AI-integrated liquidity management, offering innovative tools to liquidity providers to enhance capital efficiency and maneuver volatile markets.
Paradigm shift
This partnership brings a paradigm shift enabling AI-driven liquidity management. Traditional liquidity management normally depends on rigid strategies that are often ineffective and labor-intensive.
This collaboration brings a new approach that unites Steer’s ALM infrastructure with AI-driven automation with DODO’s proactive market maker (PMM) infrastructure to deliver advanced, automated liquidity management. Using DODO’s advanced market maker technology, Steer’s AI technology reorganizes liquidity automatically and intelligently, enabling consistent fee generation, improving capital efficiency, and reducing risks.
Through this approach, AI can predict when prices may change massively and modify liquidity bands correctly. AI can narrow ranges to take advantage of expected trading activity or widen them to minimize risks during volatile moments. This technology ensures that liquidity providers remain well-positioned without interruptions.
In other words, Steer’s AI technology automatically readjusts liquidity positions and ensures that they are always active and profitable. This integration supports DODO’s objective of reducing slippage and creating bigger, more efficient trades across multi-chain deployments while providing liquidity providers with a more effective approach to earning.
