AMM on CLOB

Overview

The "AMM on CLOB" Market Making strategy employs an innovative algorithm that combines the liquidity provisioning mechanisms of Automated Market Makers (AMM) with the advantages of Central Limit Order Book (CLOB) exchanges. It enables continuous liquidity provision in accordance with a predefined AMM curve, supports both infinite and bounded price ranges, and offers additional customizability for diverse trading needs.

Features

1. Liquidity Provision on CLOB

The "AMM on CLOB" strategy is specifically designed to offer consistent liquidity on Central Limit Order Book (CLOB) exchanges, marrying the distinct benefits of AMM-style liquidity provision with traditional CLOB-based trading platforms.

2. AMM Curve Adherence

The strategy operates dynamically in line with a predefined AMM curve, thereby facilitating precise and effective management of liquidity provision.

3. Dynamic Order Placement

The algorithm calculates limit buy and sell orders based on the potential position changes according to the AMM curve if the orders are filled. This responsive approach ensures positions remain attuned to the AMM curve, optimizing liquidity provision and risk management.

4. Support for Spot and Perpetual Trading

The "AMM on CLOB" strategy caters to different trading types, including Spot and Perpetual trading. For Spot trading, it allows the provision of both base and quote assets, while for Perpetual trading, users can supply just the collateral asset.

5. Single-Side Liquidity Provision

For users who prefer to place orders on only one side of the book, the strategy provides support for single-side liquidity. This feature adds an additional layer of flexibility to suit various trading preferences.

6. Infinite and Bounded Price Range Support

With the ability to support both infinite (Uniswap V2 style) and bounded price ranges (Uniswap V3 style), the strategy offers the flexibility to cover all potential prices or concentrate liquidity within a specific price range.

7. Automatic Price Range Adjustment

For bounded price range support, the "AMM on CLOB" strategy includes an automatic adjustment feature. When the current price moves out of the predefined range, the strategy automatically adjusts the range to keep liquidity provision effective and in line with market movements.

With its robust combination of dynamic order placements, flexible price range support, and customizable features for different trading types, the "AMM on CLOB" Market Making strategy is a comprehensive tool aimed at providing optimal, curve-based liquidity provision on CLOB exchanges.