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ION Finance doc
  • ⚡WELCOME TO ION FINANCE
    • What is ION Finance?
    • What can I do on ION Finance?
    • Why is ION Finance Different?
    • Constant Product Market Maker (CPMM)
    • Hybrid Orderbook Automatic Market Maker (AMM)
  • ⁉️FAQ
    • What unique features does ION Finance offer to its users?
    • How does the <<Convert>> feature work on ION Finance?
    • Can you explain the concept of <<Bins>> on ION Finance?
    • What are the benefits for liquidity providers (LPs) on ION Finance?
    • How does ION work within the DeFi space?
    • What is AMM?
    • What is Slippage?
  • 💡Guidelines
    • Create a wallet!
    • For Traders
      • 🔄How to use <<Convert>>
      • 💹How to use <<Trade>>
    • For Liquidity Providers
      • 💰How to use <<Earn>>
      • 🖼️How to use <<Portfolio>>
    • Creating a liquidity pool
  • 📖Concepts
    • Order book
    • Bin
    • Liquidity Provider
    • Liquidity Concentration
    • LP Token
    • Implementing Limit Orders
  • 📜Whitepaper
    • ION Finance Whitepaper
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  1. WELCOME TO ION FINANCE

Hybrid Orderbook Automatic Market Maker (AMM)

PreviousConstant Product Market Maker (CPMM)NextWhat unique features does ION Finance offer to its users?

Last updated 1 year ago

The Hybrid Orderbook Automatic Market Maker (AMM) 📚🤖 is an evolved form of the traditional , distinguished by its incorporation of . This feature enables liquidity providers (LPs) to allocate their capital within predefined price ranges, enhancing the precision and efficiency of liquidity provision. The system is engineered to optimize LP returns by concentrating funds in areas of highest demand, as predicted by market activity trends.

This approach enhances trading depth and capital efficiency by allowing LPs to customize price ranges for maximum return potential and increases fee revenue from more frequent and significant trades within these targeted areas. Moreover, the hybrid system offers traders the flexibility of both market and limit orders, offering diverse trading strategies from immediate execution to precise market positioning. Particularly effective for assets with stable price relationships or sizable liquidity pools, such as major stablecoin pairs, the Hybrid Orderbook AMM on ION Finance provides a sophisticated platform for optimizing liquidity provision and trading in predictable market conditions.

On ION Finance the Hybrid Orderbook AMM pools are represented by what we call

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AMM
concentrated liquidity
Pro mode.