Atlantis AMM
Last updated
Last updated
One of the core features of Atlantis' protocol is the AMM ( Automated Market Maker ).
Our goal is to empower and accelerate the growth of innovative Sonic-native blockchain projects by providing a robust and secure platform for token launches and token listings. In fact, after hosting their token sale on our Launchpad, on top of providing between 1% and 5% of their total supply to the Trident Vaults, the project will seed their liquidity on our DEX, de-facto launching on Atlantis. Initially, every project launching on our AMM and willing to work with us will have its LPs configured with specific swap rates which will suit its own strategy. This will result in a win/win situation in which all actors are adequately rewarded, fostering a fair and sustainable ecosystem. Initially, Artlantis' AMM will support 2 types of pools.
The Classic Pool utilizes the constant product algorithm, also known as x*y=k.
Classic Pool supports virtually any assets and maintains 50%-50% balanced reserves.
However, it is not optimized for stable assets, and the Stable Pool is a better choice for assets like USDC/USDT.
The Stable Pool is optimized for stablecoin tradings and utilizes a hybrid algorithm of both the constant product and the constant sum.
The pool model performs as a constant sum AMM when the price is pegged around 1:1 to support highly efficient tradings.
And fallback to perform as the constant product AMM when the price is de-pegged.
Stable Pool is optimized for assets like USDC/USDT that are pegged tightly around 1:1.
The pool will is highly efficient when two tokens are pegged at 1:1, but it is inefficient for uncorrelated assets like ETH/USDC.
Concentrated liquidity is an innovative approach that allows far more efficient use of liquidity by concentrating funds in areas of high trading volume, reducing slippage, and increasing trading efficiency. Concentrated pools will be implemented during Q2 2025.
