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Version: V2.1

Introduction

info

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‚Äč

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.