Benefits of Möbius Exchange’s ALM Approach
Möbius’s innovative ALM model unlocks a range of benefits:
1.Single-Sided Liquidity Provision
LPs can deposit a single token without needing to maintain exposure to multiple assets.
This simplifies liquidity provisioning, lowers barriers to participation, and improves user experience.
2.Dynamic Token Growth
Tokens can expand their liquidity based on organic demand and supply.
The system is not constrained by fixed liquidity ratios. This flexibility allows the protocol to adapt to changing conditions without creating inefficiencies.
3. Extendable Pools
Möbius supports pools with more than two assets, where all tokens can be seamlessly exchanged. This enhances capital efficiency by reducing liquidity fragmentation.
Additionally, new assets can also be added to existing pools dynamically later without affecting the equilibrium, enhancing scalability.
4. Competitive exchange rate increases volume, liquidity utilization and APY
The extendable pool design enables capital efficiency while maintaining stable and competitive exchange rates. This leads to higher trading volume, improved liquidity utilization, ultimately driving greater revenue generation compared to other AMM designs with the same amount of liquidity. As a result, both APY and protocol revenue increase, while also enhancing overall user experience.
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