What follows from one invariant
01
Predictable market impact
The displayed liquidity L determines exact price impact, so what
you see is what you get: log-price slippage is Δx = ΔQ / L.
02
Explicit liquidity
Liquidity L remains constant across prices above the floor.
Risk is constant in the dimensions that matter: exposure — Δ — and
the LVR risk — Γ — are both equal to L, making exposure
hedgeable and P&L quantifiable.
03
Capital efficiency
For the same reserves, displayed liquidity is roughly four times that of the
xy = k invariant — the same capital, four times the depth.
04
Simple liquidity workflows
Positions are fungible and liquidity is algebraic. Portfolios can be
combined, split, rebalanced or resized without rebuilding fragmented ranges and positions.
05
Institutional infrastructure
At the core, the protocol provides the foundations for compliant liquidity
infrastructure: protocol-owned liquidity, and private pools with controlled access.
SLAs and KPIs are contract-enforced parameters, under the sponsor's full control.