V2.1 adds Gas Optimization, Factory Presets, and new Router and Quoter support. See Key Changes for details.
Liquidity Book is a novel, highly-capital efficient Automated Market Maker (AMM) protocol. Its features include:
- Zero Slippage: Traders can swap tokens with zero slippage within bins.
- Surge Pricing: Liquidity Providers earn additional dynamic fees during high market volatility.
- High Capital Efficiency: Liquidity Book can support high volume trading with low liquidity requirements.
- Flexible Liquidity: Liquidity Providers can build flexible liquidity distributions according to their strategy.
Liquidity Book vs Uniswap V3
Both Liquidity Book and Uniswap V3 are concentrated liquidity AMMs with some subtle differences:
- Price ranges are discretized into bins instead of ticks
- Bins use constant sum invariant instead of constant product
- Bin steps (or tick sizes) can be more than 1 basis point
- Liquidity is aggregated vertically instead of horizontally
- Liquidity positions are fungible
- Liquidity positions are not restricted to uniform distribution across its price range; they can be distributed in any shape desired
- Swap fees have fixed + variable pricing, which allows the AMM to charge more fees when the market experiences high volatility.