β¬οΈAsymmetric Liquidity Market Maker
Last updated
Last updated
The Asymmetric Concentrated Liquidity Market Maker (A-CLMM) is an advanced mechanism developed for WispSwap DEX that leverages the foundational concept of Uniswap V3βs CLMM. The A-CLMM model improves upon the conventional CLMM by allowing liquidity providers to select two distinct price ranges for two different directions of swap, as opposed to one range for both directions. With CLMM, liquidity providers are limited to the option of concentrating their liquidity on both sides of the swap, thereby limiting their ability to fully utilize their capital. In contrast, A-CLMM enables liquidity providers to optimize their capital allocation in either the buy or the sell direction, or even in both directions simultaneously, thereby offering greater flexibility and the potential for higher returns and overall capital efficiency. Additionally, the use of asymmetric ranges in A-CLMM allows for greater concentration of capital at desired prices and directions, which can improve the user experience by reducing slippage and enhancing execution prices.