AMM V3

The AMM functions akin to Univ3, incorporating a variety of tailored features that boost efficiency and performance. In addition to general performance enhancements over the standard Univ3 codebase, notable improvements have been integrated:

Customizable Tickspacing

The V3 AMM offers users the capability to personalize tick spacing settings for individual liquidity pools, providing unparalleled flexibility with tailored tick parameters. This feature ensures optimal efficiency for each pool by allowing adjustments to tick spacing. Such enhanced efficiency leads to improved volume and fee generation.

Dynamic Volatility Fees

V3 introduces a fee structure that dynamically adapts to market volatility, resulting in significant efficiency gains. The protocol adjusts fees for each liquidity pool based on prevailing volatility levels, enhancing fee generation and trade volume.

A notable aspect of this feature is the ability to set distinct volatility-based fee ranges for both buy and sell directions. This allows each liquidity pool to offer highly customized fee structures tailored to specific market conditions, leading to increased fees and trading volume as fees better reflect the market's risk profile.

During periods of low trading volume, fees automatically adjust downwards to prevent users from facing high fees in quieter market conditions. Conversely, when the market experiences heightened volatility, fees proportionally increase to address the increased risk.