We build custom liquidity pools with advanced bonding curves, incentive mechanisms, and LP management tools. The foundation of on-chain market making.
Liquidity pools are the foundation of decentralized trading and DeFi composability. They determine how assets are priced, how trades are executed, and how liquidity providers earn returns. While standard AMM pools serve many use cases, innovative protocols often need custom pool designs with unique bonding curves, fee structures, or liquidity concentration mechanisms. Arthiq builds these custom liquidity solutions.
Our liquidity pool development covers the full spectrum — from standard constant product pools to specialized implementations like stable pools for correlated assets, weighted pools for index-like exposure, and oracle-based pools that use external price feeds to minimize impermanent loss for LPs.
Each pool design involves careful analysis of the assets being traded, the expected trading patterns, and the incentives needed to attract sufficient liquidity. We model pool economics quantitatively, testing fee revenue against impermanent loss under various volatility scenarios to ensure LPs are fairly compensated for the risks they take.
The bonding curve determines how a pool prices assets at different liquidity ratios. We implement and customize multiple curve types — constant product (x*y=k) for general trading pairs, StableSwap curves for tightly correlated assets like stablecoins, concentrated liquidity curves that focus capital around the current price, and custom mathematical functions for specific pricing behaviors.
For protocol-owned liquidity, we design bonding curves that serve the protocol's specific needs. Tokens sold through bonding curves can follow linear, exponential, sigmoid, or step-function pricing. We model how different curve shapes affect price discovery, slippage, and value extraction for different market participants.
We also build multi-asset pools that support more than two tokens in a single pool. These pools can provide balanced index exposure, reduce the number of required pools, and enable efficient routing for multi-hop trades. The mathematical complexity increases significantly with additional assets, and our engineering team handles this with rigor.
Attracting initial liquidity is one of the biggest challenges for new DeFi protocols. We build liquidity mining programs that incentivize early LPs with token rewards while designing emission schedules that taper toward sustainability. Our incentive contracts support configurable reward rates, boost mechanisms for long-term LPs, and multi-token reward distribution.
Beyond simple reward distribution, we design incentive structures that attract the right type of liquidity. For concentrated liquidity pools, we reward LPs based on the tightness of their price ranges and the proportion of active trading that their liquidity supports. For stable pools, we incentivize depth at the peg rather than wide-range positions.
We also help protocols transition from incentivized liquidity to organic liquidity. This involves designing protocol fee structures that make LP positions profitable without subsidies, building protocol-owned liquidity through bonding mechanisms, and creating utility for LP tokens that provides additional value beyond trading fees.
Liquidity providers need tools to manage their positions effectively. We build LP management interfaces that display current position value, accrued fees, impermanent loss, reward earnings, and the net return on their liquidity. For concentrated liquidity positions, we show range utilization and provide recommendations for range adjustment based on recent price action.
Analytics infrastructure tracks pool performance metrics — trading volume, fee revenue, total value locked, liquidity depth at key price points, and utilization rates. These metrics are indexed using The Graph and displayed through real-time dashboards that serve both LPs and protocol operators.
We also build position management automation — auto-compounding of earned fees back into LP positions, range rebalancing for concentrated liquidity, and alert systems that notify LPs when their positions go out of range or when impermanent loss exceeds specified thresholds.
Protocol-owned liquidity (POL) provides a permanent liquidity base that does not rely on mercenary capital. We build POL mechanisms including bonding contracts where users exchange tokens for discounted protocol tokens, treasury liquidity management systems, and liquidity direction through governance.
Our POL implementations include revenue distribution from protocol-owned LP positions, automated rebalancing to maintain target pool compositions, and governance controls that allow the community to direct liquidity allocation across multiple pools and chains.
Arthiq builds liquidity infrastructure that serves both your protocol's needs and your LPs' interests. Our Singapore-based team combines DeFi engineering with economic modeling to create liquidity systems that sustain themselves. Contact founders@arthiq.co to discuss your liquidity pool project.
We build liquidity pools with advanced bonding curves, incentive programs, and LP management tools. The foundation of your DeFi protocol.