# Hybrid Orderbook Automatic Market Maker (AMM)

:arrow\_left:[Go Back](/ion-finance-doc/welcome-to-ion-finance.md)

The Hybrid Orderbook Automatic Market Maker (AMM) 📚🤖 is an evolved form of the traditional [AMM](/ion-finance-doc/faq/what-is-amm.md), distinguished by its incorporation of [concentrated liquidity](/ion-finance-doc/concepts/liquidity-concentration.md). 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.

{% hint style="info" %}
On ION Finance the <mark style="background-color:purple;">Hybrid Orderbook AMM</mark> pools are represented by what we call [Pro mode.](/ion-finance-doc/guidelines/for-liquidity-providers/how-to-use-less-than-less-than-earn-greater-than-greater-than.md)
{% endhint %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://ion-finance-1.gitbook.io/ion-finance-doc/welcome-to-ion-finance/hybrid-orderbook-automatic-market-maker-amm.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.