Programmable liquidity

$0X's methodology empowers market makers and liquidity providers to operate with greater efficiency and precision in the market. They can now create strategies that closely resemble CeFi market-making operations, leading to more effective market management.

Current inefficient use of liquidity

Traditional Automatic Market Makers are symmetric and reversible, necessitating liquidity provision in both directions between assets and price movements. This results in a high cost and inefficiency in providing liquidity, as substantial amounts of capital must be placed in a liquidity pool for the trading pair. Additionally, having a large sum of capital concentrated in a single pool creates a tempting target for hackers.

While concentrated liquidity offers improvement by allowing users to provide liquidity in areas with high trade volumes, it still faces the same issues within the constant product liquidity model.

Programmable Liquidity

In contrast, $0X's Asymmetric Liquidity enables users to create personalized strategies consisting of two separate bonding curves, each executing irreversible trades. This enables liquidity providers to be highly precise in adding liquidity, representing a much more efficient utilization of capital. Consequently, markets can operate with less capital compared to current methods.

Moreover, this approach enhances security by eliminating the need for liquidity pools, removing the honey pot for potential hackers. Instead, funds remain in the wallet of the liquidity provider or trader and are only utilized when the strategy requires.

$0X's methodology introduces programmable liquidity, revolutionizing market-making operations in DeFi. This novel approach offers a more efficient and secure means for liquidity providers and traders to interact with the market, bringing significant benefits to the DeFi ecosystem.