Hybrid Liquidity DEX
MovEX combines the best of AMM and order book and delivers the ultimate trading and liquidity provision experience for everyone by creating a hybrid liquidity pool. Internally, MovEX has a settlement engine that distributes orders between AMM and order book, guaranteeing both minimal slippages for traders and fairness for liquidity providers.
Retail liquidity providers enjoy the convenience of providing single-sided liquidity at a custom price range and efficiently manage the impermanent loss.
Professional traders and liquidity providers enjoy the advanced features provided by the order book. Moreover, traders can also earn commissions if their limit order is filled. This is because limit orders are considered makers and, therefore, can receive commissions like liquidity providers, similar to centralized exchanges.
In addition to market orders supported in traditional AMM-based DEX, MovEX also supports advanced orders, including but not limited to limit orders, stop-loss orders, and take-profit orders.
We leveraged an on-chain order book that allows users to submit limit orders on MovEX. By submitting a limit order, the user essentially serves as a liquidity provider, and they will earn LP rewards when their orders are filled.
The AMM part of MovEX is implemented through a concentrated liquidity way. Unlike traditional constant product AMM, while liquidity is distributed uniformly along the price range between (0, \infinity), the concentrated liquidity AMM allocates liquidity within custom price ranges. With concentrated liquidity AMM, LPs can customize their liquidity to this range, and traders are offered deeper liquidity around this range, and LPs would earn more trading commissions.
We leveraged a settlement engine to settle market orders. Consider the following example, the tick size of the order book is 0.1, and the spot price of the token is 100. When it market order arrives, it will first consume the AMM liquidity between 100 and 100.1, then it will consume the order book liquidity at 100.1. Afterward, it will continue consuming the AMM liquidity between 100.1 and 100.2, and then the order book liquidity at 100.2, until the market order is completely filled.