Hybrid Orderbook Automatic Market Maker (AMM)
The Hybrid Orderbook Automatic Market Maker (AMM) 📚🤖 is an evolved form of the traditional AMM, distinguished by its incorporation of concentrated liquidity. 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 Pro mode.
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