AnyAMM
An "automated market maker" (AMM) is a type of decentralized smart contract that uses mathematical formulas to facilitate trades, rather than the traditional order matching used in centralized order books. The AnyAMM, Any.trade's version of an AMM, has been tailored from the Uniswap model (X*Y=k) to incorporate market volatility and the open interest of all positions within a market.
Each market on Any.trade starts with an initial liquidity, currently set at 10,000 AnyUSD, ensuring that the liquidity level never drops below this value. In the AnyAMM system, every position a trader enters automatically contributes a portion to the market's liquidity, which is then withdrawn when the position is closed. This design ensures that liquidity in popular markets increases proportionally to their demand, leading to reduced slippage for traders. This is a substantial improvement over the traditional Uniswap AMMs because liquidity is 1. flexibly adjusted based on demand, and 2. bolstered by every open position, effectively eliminating the risk of "rug pulls" by a small number of liquidity providers.
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