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serai/docs/amm/index.md
Luke Parker 233164cefd
Flesh out docs more
2024-03-11 23:51:44 -04:00

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Automatic Market Makers default 2

Automatic Market Makers

text on how AMMs work

Serai uses a symmetric liquidity pool with the xy=k formula.

Concentrated liquidity would presumably offer less slippage on swaps, and there are discussions to evolve to a concentrated liquidity/order book environment. Unfortunately, it effectively requires active management of provided liquidity. This disenfranchises small liquidity providers who may not have the knowledge and resources necessary to perform such management. Since Serai is expected to have a community-bootstrapped start, starting with concentrated liquidity would accordingly be contradictory.