Ebisu AMM Framework

Creating Liquidity for the Future

On-chain Limit Order Book 🔛⛓️

Create specialized limit orders for your favorite pools. Customize your order to your liking. All on-chain.

Limit Order time-in-force options:

• GTC (Good Till Cancelled) - Passive order. Keeps order active until filled. Default option.

• IOC (Immediate or Cancelled) - Aggressive order. Fill all immediate orders, cancel remaining.

• FOK (Fill or Kill) - Aggressive order. Fill entire order. If unable to be filled, cancel entire order.

Uncorrelated Swaps 🔀

Bentoswap will allow users to create liquidity pools with two tokens, the initial ratio of these tokens determines their starting prices relative to each other, with subsequent trades affecting the price of each token, governed by the Constant Function:

x + y = k

Where X and Y are the amounts of the two tokens, but k remains the same. This formula only holds true for uncorrelated swaps. Swaps involving stablecoins and other correlated assets require a different formula to execute with minimal slippage.

Liquidity Providers 👨‍💼👩‍💼

Liquidity providers create new pools and provide liquidity for them so that traders can swap between the two tokens. To redeem their liquidity positions they must burn the resultant LP token that they receive.

Traders 💹

Traders interact with the pools created by liquidity providers to swap between tokens.

Stable Swaps 🔂

Constant function stable swaps can have large changes in tokens relative prices despite the fact that these tokens should have highly correlated values - think USDC and USDT - both should be almost exactly $1 at all times.

To circumvent these large swings in correlated assets relative values, we will borrow from Andre Cronje’s work on Solidly

x^3*y + x*y^3 = k

NFT AMM 🐵🖼️

Ebisu pools can be created with Tokens or Coins, or both. It's a new way of thinking about liquidity.

Create highly customizable pools depending on your use case.

Selling? Ebisu will route you to the best buying pool to maximize your earnings, or create a selling pool for your desired price, and Ebisu will automatically route a buyer to you when the price is right.

Buying? Choose your desired purchase price and price adjustment curve, then put your offering tokens into a buying pool and Ebisu will automatically route sellers to you when the price is right.

Trader? Earn perpetual fees by adding both sides of the pair to a trading pool with a starting price and price adjustment curve and Ebisu will automatically route buyers and sellers to you when the price is right.

NFT Creator? Automate the price liquidity of in-game NFT assets. Optimize price discovery for your NFT drop by minting to the pool. Bootstrap your treasury by creating trading pools with your assets and build up fees and your war chest. Bring your imagination, the possibilities are endless.

By allowing anyone to create or join pools, leveled price floors can be created depending on NFT traits or metadata.

Possible pairs:

• Coin <> Coin - The tried and true AMM pair everyone knows and loves

• Token <> Coin - Tried and true liquidity meets NFT assets

• Token <> Token - Level up your NFT ecosystem with gamification-meets-DeFi mechanics

NFT AMM - Mechanics

Pool types:

• Buy only - A pool that automatically purchase assets on a bonding curve

• Sell only - A pool that automatically sells assets on a bonding curve

• Trading - A pool that automatically buys and sells assets on a bonding curve, collecting fees on each trade

Bonding curve types:

• Static - Price does not change after trades

• Additive - Price changes by a fixed amount after each trade

• Multiplicative - Price changes by a percentage after each trade