Liquidity Book
Last updated
Last updated
Bonzi Swap will use the Liquidity Book AMM mechanism to run the protocol. Liquidity Book is a novel, highly-capital efficient Automated Market Maker (AMM) protocol. Its features include:
Zero Slippage: Traders can swap tokens with zero slippage within bins.
Surge Pricing: Liquidity Providers earn additional dynamic fees during high market volatility.
High Capital Efficiency: Liquidity Book can support high-volume trading with low liquidity requirements.
Flexible Liquidity: Liquidity Providers can build flexible liquidity distributions according to their strategy.
Discrete Liquidity Bin
Unlike traditional AMM DEX, liquidity providers (LPs) for LB deposit liquidity into discrete price bins; each bin is assigned a specific price, and liquidity providers can provide liquidity to any amount of bin they want. The price of the bin they put their funds in is the price that they want to provide liquidity for trading.
Market Making Principle
Market-Making Principle, The formula for LB market making, is P*x+y=L; the pricing parameter of the bin and the total liquidity reserves stored in the bin ultimately determine the bin curve.
For more details please refer to: https://docs.traderjoexyz.com/
