# Overview Automated Market Makers (AMMs) have been a major innovation in decentralised finance (DeFi), enabling traders to swap tokens on-chain in a decentralised manner while allowing liquidity providers to earn a yield on their tokens and accruing trading fees in return. However, traditional AMMs share similar shortcomings in their design, specifically around impermanent loss risk and capital inefficiencies. ## **Problems with existing AMM design** * **Fragmented Liquidity -** The liquidity of different pools cannot be shared with one another due to the closed liquidity pool design in first-generation stableswaps, resulting in less-than-ideal slippages and indirect trades. * **Impermanent Loss -** Providing 50/50 paired liquidity is expensive for an individual and has the looming risk of impermanent loss. * **Complex Pool Design** **-** The design of other stableswaps requires multiple tokens of equal value within a pool, complicating pool compositions and hindering the scalability of the protocol. * **Insufficient Risk Management** - Liquidity providers suffer the maximum loss in the event of depegging of an asset as there is no mechanism to prevent or minimise losses. ## MantisSwap - Redefining the StableSwap AMM MantisSwap has four core features that makes it stand out from other AMMs: * **Single-Sided Liquidity -** Instead of having to deposit both tokens like in a classic liquidity pool, liquidity providers only need to deposit one token and receive a receipt token (called the LP token) for the deposited token. * **Open Pool Design -** While other AMMs have fragmented liquidity amongst pools, on MantisSwap liquidity is shared between tokens, allowing token swapping from different pools and enabling higher capital efficiency of the system. * **Flexible Architecture -** The pool design of Mantis allows multiple tokens of the same kind to be accommodated in a single liquidity pool, enabling deeper liquidity for each asset. * **Autonomous Loss Protection -** MantisSwap design features a novel mechanism to minimise losses due to the volatility risk associated with various pegged assets using internal pool metrics rather than depending fully on oracles.