Concentrated Liquidity Automated Market Maker

Interest Protocol CLAMM is a decentralized exchange with the following features:

  • Stable Curve: A bonding curve specially designed for correlated assets. It combines the constant product invariant (k = x * y) with the constant sum invariant (k = x + y) via an amplifier to flatten the curve in the middle. You can read more about it here.

  • Volatile Curve: These pools track the prices of the assets via internal oracles using an exponential moving average. It concentrates the liquidity around that price.

  • Hooks: Inspired by UniswapV4 hooks, Interest Protocol CLAMM implements pool policies. Deployers can customize their pools by implementing custom computation before or after a swap or liquidity position change. This extends the pools to support a myriad of applications such as ERC404, fee on swap, limit orders, custom oracles, etc...

  • Public Good: Interest Protocol does not have access to the swap fees. They are all in control of the deployer of the pool. This makes the CLAMM into a public good. It acts as a venue for projects to own the revenue from their protocol coin volume.

  • Passive Liquidity Management: UniswapV3 requires liquidity providers to actively manage their liquidity to capture fees and reduce impermanent loss. The Interest CLAMM moves the liquidity around automatically. This facilitates liquidity provision for everyone.

  • One Sided Liquidity: Liquidity providers are not required to provide or remove both coins in a CLAMM pool. They are free to provide their preferred coin.

  • LpCoins: Liquidity in the CLAMM is represed by Coins instead of NFTs. This make sit more composable in DeFi because of its fungibility. You can easily price them by checking the liquidity in the DEX and vistual price.

  • Multi-coin Pools: CLAMM pools support more than 2 coins. This allows for more exotic and concentrated pairs.

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