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Hybrid AMM

Definition

A Hybrid AMM, or Hybrid Automated Market Maker, is a type of decentralized exchange liquidity protocol that combines features from different AMM models to optimize capital efficiency and reduce impermanent loss. Unlike traditional constant product AMMs, hybrid versions may incorporate elements like concentrated liquidity or dynamic fee structures to better serve specific asset pairs or market conditions. This approach aims to provide more efficient trading and improved returns for liquidity providers. It represents an evolution in decentralized exchange design.