mirror of
https://github.com/serai-dex/serai.git
synced 2024-12-23 03:59:22 +00:00
19 lines
739 B
Markdown
19 lines
739 B
Markdown
---
|
|
title: Automatic Market Makers
|
|
layout: default
|
|
nav_order: 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](https://github.com/serai-dex/serai/issues/420).
|
|
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.
|