AMM Engineering

AMM Development Services

We build custom automated market makers with advanced bonding curves, concentrated liquidity, and gas-optimized pool mechanics. Tailored trading infrastructure for your ecosystem.

Custom Automated Market Makers

Automated Market Makers have revolutionized on-chain trading by replacing traditional order books with algorithmic pricing functions. But not every AMM design is suitable for every trading pair or use case. Stablecoin pairs need flat curves around the peg. Volatile pairs need capital-efficient concentrated liquidity. Long-tail tokens need simple constant product pools with minimal overhead. Arthiq develops AMMs with the specific bonding curve and feature set your trading ecosystem requires.

Our AMM development goes beyond implementing existing designs. We work with your team to understand the assets being traded, the expected liquidity depth, the trading patterns of your users, and the LP incentive structure. From this analysis, we design a pool architecture that optimizes for your specific objectives — whether that is maximum capital efficiency, minimum slippage, or simplest LP experience.

We have built AMMs on Ethereum, Polygon, Arbitrum, Base, and Solana, each optimized for the chain's specific characteristics. Gas costs, block times, and execution environments vary significantly across chains, and these differences affect AMM design decisions in meaningful ways.

Bonding Curve Design and Implementation

The bonding curve defines how an AMM prices trades at different liquidity levels. We implement multiple curve types and customize them for your application. Constant product (x*y=k) curves provide simple, reliable pricing for general trading pairs. StableSwap curves minimize slippage for correlated assets like stablecoins or liquid staking derivatives.

Concentrated liquidity allows LPs to allocate their capital within specific price ranges, dramatically increasing capital efficiency. We implement concentrated liquidity with tick-based pricing, position management through NFT-based LP tokens, and fee accumulation that rewards active LPs based on the trading volume their liquidity supports.

For novel applications, we design custom curves — sigmoid curves for token launches with price discovery, weighted curves for index-like pool behavior, and dynamic curves that adjust based on oracle prices or volatility metrics. Each curve implementation includes mathematical verification and economic simulation to confirm correct behavior.

Pool Contract Architecture

Our AMM pool contracts are architected for gas efficiency, security, and composability. Factory contracts deploy new pools with minimal gas through CREATE2 or minimal proxy patterns. Pool contracts handle swaps, liquidity additions, and removals with optimized storage patterns and efficient mathematical operations.

We implement multi-pool routers that find optimal swap paths across multiple pools, including multi-hop trades through intermediate tokens. Router contracts aggregate liquidity from all pools to provide the best execution price for every trade. Flash swap functionality enables arbitrage and liquidation without requiring upfront capital.

Pool security includes reentrancy protection, manipulation-resistant pricing (TWAP for oracle consumers), minimum liquidity requirements to prevent donation attacks, and configurable fee structures with protocol fee collection for sustainable protocol economics.

LP Experience and Incentives

Liquidity providers are the backbone of any AMM. We build LP management interfaces that make it easy to add and remove liquidity, track earned fees, monitor impermanent loss, and manage concentrated liquidity positions. Clear visualizations show the LP's current position, historical returns, and projected earnings.

For concentrated liquidity AMMs, position management is more complex — LPs must choose price ranges, rebalance when markets move, and claim accumulated fees. We build tooling that helps LPs make informed range decisions based on historical volatility, provides alerts when positions go out of range, and enables automated rebalancing for passive LPs.

Liquidity mining programs incentivize early LP participation with token rewards. Our incentive contracts support time-weighted reward distribution, boosted rewards for tighter price ranges, and configurable emission schedules that taper toward sustainability.

AMM Analytics and Operations

We build analytics infrastructure that tracks AMM performance — trading volume, fee revenue, TVL, price impact for different trade sizes, and LP returns. These metrics are indexed through subgraphs and displayed in dashboards that serve both protocol operators and the broader community.

Operational tooling includes pool parameter governance (fee tier changes, protocol fee adjustments), pool creation and initialization workflows, and monitoring for abnormal trading patterns that might indicate manipulation.

Arthiq builds AMMs that drive real trading volume through thoughtful design and excellent LP tooling. Our Singapore-based team brings deep DeFi engineering expertise to every AMM project. Contact founders@arthiq.co to discuss your AMM development.

What We Deliver

  • Custom bonding curve design and implementation
  • Concentrated liquidity pool development
  • StableSwap curve optimization for correlated assets
  • Multi-pool router with optimal trade routing
  • LP position management and analytics
  • Flash swap and arbitrage support
  • Liquidity mining and incentive programs

Technologies We Use

SolidityRustFoundryHardhatAnchorOpenZeppelinThe Graphethers.jswagmiNext.js

Frequently Asked Questions

Constant product (x*y=k) for general trading pairs, StableSwap for correlated assets like stablecoins, and concentrated liquidity for capital-efficient professional trading. We help you choose based on your assets and user base.
Concentrated liquidity allows LPs to allocate capital within specific price ranges instead of across the full spectrum. This provides much deeper liquidity at relevant prices and higher fee returns per unit of capital.
We implement TWAP oracles for manipulation-resistant pricing, minimum liquidity requirements, and monitoring for abnormal trading patterns. Flash swap protections prevent single-block manipulation attacks.
Yes, we build AMMs on Solana using Rust and Anchor, leveraging Solana's parallel execution for high-throughput trading. The account model requires different architectural patterns than EVM AMMs.
LPs stake their liquidity tokens and earn reward emissions proportional to their share of the pool. We implement time-weighted distribution, range-based boosts for concentrated liquidity, and configurable emission schedules.

Need a Custom AMM?

We build automated market makers with the bonding curve, feature set, and LP experience your trading ecosystem needs.