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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