2024-03-12 00:00:01 +00:00
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---
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title: Automatic Market Makers
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layout: default
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nav_order: 2
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---
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2024-03-12 03:51:44 +00:00
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# Automatic Market Makers
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2024-03-12 00:00:01 +00:00
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*text on how AMMs work*
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Serai uses a symmetric liquidity pool with the `xy=k` formula.
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Concentrated liquidity would presumably offer less slippage on swaps, and there are
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[discussions to evolve to a concentrated liquidity/order book environment](https://github.com/serai-dex/serai/issues/420).
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Unfortunately, it effectively requires active management of provided liquidity.
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This disenfranchises small liquidity providers who may not have the knowledge
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and resources necessary to perform such management. Since Serai is expected to
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have a community-bootstrapped start, starting with concentrated liquidity would
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accordingly be contradictory.
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