Tidal AMM

Tidal AMM

Tidal AMM is a Discrete Concentrated Liquidity Automated Market Maker (DCLAMM) built for the symToken/Token markets.

Similarities with Other CLAMMs

  • Liquidity on Tidal AMM is concentrated in discrete price bins

  • Swaps within the same bin have zero slippage

  • Liquidity Providers can provide liquidity in arbitrary price bins.

Key innovations of Tidal AMM

  • Single-asset-LP - Liquidity Providers only need to provide one type of asset to Tidal AMM. e.g., for the GLP-symGLP market, LPs only need to provide GLP.

  • One-way-fill - Unlike other AMMs, Tidal AMM doesn't replenish liquidity after fills. e.g., if an LP's 100 GLP got swapped by leverage buyers into 110 symGLP, he would find the 110 symGLP in his account and ready-to-withdraw, rather than put back to Tidal AMM. This creates a similar user experience as limit orders on orderbooks, and reduces LP loss from sandwich attacks.

  • Tidal Force - The embedded incentive layer of Tidal AMM that constantly pushes the symToken/Token price towards 1.

Tidal AMM is the first efficient price discovery mechanism for leveraged yield. While leveraged buyers sell symToken to leverage up, pushing its price lower against Token; Tidal Force is constantly driving symToken price higher with incentives. The equilibrium reached between these two competing forces is the market price of leverage.

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