Fusion AMM (FAMM)

nftperp v2 introduces a hybrid liquidity protocol that combines constant liquidity AMM with decentralized limit orderbook (DLOB).

Every positions taken against the AMM and/ or DLOB as a direct counterparty on the other side, which fixes the counterparty issue nftperp v1 faced.

We call this - Fusion AMM.

The benefits of having an AMM as the base source layer of liquidity are:

• There’s always liquidity available for takers to enter or exit positions
• Isolated and customizable pool parameters for individual market risks
• Easy bootstrap for new pair
• Allows anyone to be a maker on the protocol with automated bid/ ask strategy

Combining with nftperp’s DLOB, the Fusion AMM inherits the benefits of limit orderbook liquidity:

• Independent and ease of price discovery
• Scaling - increase market depth and reduce price impact on significant orders
• Direct counter parties for takers and makers
• Minimal price impact on markets when order conditions are matched