An automated market maker (AMM) is a fully automated decentralized exchange (DEX) where trades are made against a pool of tokens called a liquidity pool without the need for a third-party intermediary. An algorithm determines the prices at which buyers and sellers can trade assets and regulates the values of the tokens in the liquidity pools. Examples of AMM include Uniswap, Curve, and MantisSwap.


An annual percentage rate (APR) is the % interest a user earns on their investment. Users can earn this by staking their assets in the protocol.



Net Liquidity Ratio. It is the sum of all the assets divided by the total liabilities of the protocol.

NLR denotes the health of the protocol.

NLR >= 1 - Healthy

NLR < 1 - Stressed. Protocol fees are updated to return back to health.


Risk Tolerance Variable. RTV determines the amount of risk the protocol is willing to take in case of a peg deviation for a token and prevents the liquidity ratio of a volatile token from going beyond a certain threshold. More info in RTV


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