/biz/ - Business & Finance

>>56661014
Liquidity Book is a novel, highly-capital efficient Automated Market Maker (AMM) protocol. Its features include:

>Zero Slippage: Traders can swap tokens with zero slippage within bins.
>Surge Pricing: Liquidity Providers earn additional dynamic fees during high market volatility.
>High Capital Efficiency: Liquidity Book can support high volume trading with low liquidity requirements.
>Flexible Liquidity: Liquidity Providers can build flexible liquidity distributions according to their strategy.

Both Liquidity Book and Uniswap V3 are concentrated liquidity AMMs with some subtle differences:

>Price ranges are discretized into bins instead of ticks
>Bins use constant sum invariant instead of constant product
>Bin steps (or tick sizes) can be more than 1 basis point
>Liquidity is aggregated vertically instead of horizontally
>Liquidity positions are fungible
>Liquidity positions are not restricted to uniform distribution across its price range; they can be distributed in any shape desired
>Swap fees have fixed + variable pricing, which allows the AMM to charge more fees when the market experiences high volatility.

source: trader joe docs