Constant Function Market Maker
Last updated
Last updated
Unlike all other AMMs on SUI, which only allow pools of two assets, Aftermath offers a Constant Function Market Maker with up to 8 assets per pool. Why does this matter? For a nascent ecosystem like Sui, most liquidity will arrive via bridge.
Unfortunately, assets which arrive from different chains and/or different bridges, are not fungible. This means if you bridge a coin like ETH from Arbitrum, you can not trade it in a pool which consists of the same coin but was bridged from Solana. Or which arrived via a different bridge.
Our answer to this problem is to pool all of these similar coins together, using a stable swap invariant which pegs their value to be roughly the same, and allows for easy and low slippage trades between coins.
Our CFMM also supports uncorrelated assets, for pools such as ETH, BTC, SUI, USDC, or any other combination at whichever relative weights the user wants. In addition to facilitating efficient swaps between the multiple coins in the pool, these uncorrelated pools also allow for the creation of different types of baskets. For instance, you can create a bluechip index, or a meme coin index, with each individual coin representing any percentage of the total pool so long as they all add up to 100.
Creating pools is completely permissionless, providing complete creative freedom to the community to deploy the pools they are most interested in.