AMM vs AVMM
Here are some key fundamental differences between AMMs and AVMM:
Parameters
AMMs
AVMM
Price Discovery
Price Curves
Price Oracles
Liquidity Pool Type
Symmetric/Asymmetric Dual-Sided Public Pools
Asymmetric Single-Sided Private Pools
Fee Sharing
Percentage holding of the TVL in the Liquidity Pool
Percentage of the Trading Volume Settled
Fee Structure
Multiple Fee Tiers
No Fee Tiers; Dynamic Fee Discounts
Order Routing
Routed via smart contracts based on liquidity and slippage
Routed via Dextr AVS based on price and LP rank
Design & Architecture
Single-Chain Architecture
Multi-Chain Architecture
Price Ranges
Concentrated liquidity ranges in token pairs
Adaptive liquidity ranges in USD with stop-loss and take profit
Liquidity Management
Dynamic Pool Rebalancing driven by arbitrageurs
Dynamic Liquidity Rotation driven by order routing
LVR Protection
Leadsearcher auctions redistribute value, but do not fully eliminate
LVR doesn’t exist due to single-sided pools that dont require rebalancing
MEV Protection
TWAP/Batch Auctions, doesn’t fully eliminate MEV
ZK Proofs-based slashing and compensation for comprehensive MEV protection
Token Listing Mechanism
Requires separate pools for each trading pair
Unified; Enables shared liquidity across pairs
Token Utility
Governance, Payments, and Settlements
Indemnity, Underwriting, and Governance
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