🌐┃AMM V3
Last updated
Last updated
The AMM operates similarly to Univ3, with a range of custom features that enhance efficiency and performance. Among its general performance improvements on the vanilla Univ3 codebase, some major enhancements have been implemented, such as:
V3 AMM empowers users with the ability to customize tick spacing settings for each liquidity pool. This feature unlocks unparalleled flexibility by allowing tailored tick parameters. By providing the flexibility to adjust tick spacing, V3 AMM ensures optimal efficiency for each liquidity pool. This enhanced efficiency translates to improved volume and fee generation
V3 introduces a fee structure that adapts to the underlying market volatility, resulting in significant efficiency gains. The protocol dynamically adjusts the fees for each liquidity pool based on the prevailing volatility, enhancing fee generation and trade volume
One of the notable aspects of this feature is the ability to set distinct volatility-based fee ranges for both buy and sell directions. As a result, each liquidity pool can offer highly tailored fee structures that cater to specific market conditions
During periods of low trading volume, the fees automatically adjust downwards, ensuring that users are not overburdened with high fees in quieter market conditions. Conversely, when the market experiences heightened volatility, the fees proportionally increase to account for the increased risk