The AVOCADO project aims at establishing firm conclusions on the formation and evolution of dwarf galaxies by constructing a homogeneous, multiwavelength dataset for a statistically significant sample of ~6500 nearby dwarfs (-18 < Mi < -14). We make use of optical spectra and UV-to-NIR imaging to derive star formation rates, stellar masses, ages and metallicities â€“ which are further supplemented with structural parameters that are used to classify them morphologically. This unique dataset, coupled with a detailed characterisation of each dwarfâ€™s environment, allows for a fully comprehensive investigation of their origins and to track the (potential) evolutionary paths between the different dwarf types. I will present an overview of the project and analysis tools, and an environmental study of star-forming and quiescent dwarf galaxies. We find a strong trend for the latter, in the sense that all quiescent dwarfs are found in the vicinity (< 1.5 Mpc) of > Lstar companions. I will discuss the implications of this finding in terms of the different roles of internal and external mechanisms in building up the low-mass end of the red sequence.