> For the complete documentation index, see [llms.txt](https://obricxyz.gitbook.io/smart/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://obricxyz.gitbook.io/smart/obric-smart-liquidity-matters.md). # Obric: Smart Liquidity Matters Obric currently operates as a proprietary AMM and does not accept external liquidity. As we expand to more chains and validate our methodology, we may open up deposits to external LPs in the future. ## All Concentrated, Zero Compromise Obric gives liquidity providers all the upsides of concentrated liquidity, with none of the trouble in LP management. We are building a new type of AMM that gives our liquidity providers: * High Concentration * Zero Impermanent Loss * Market Neutrality ### Proactive pricing Obric is a proactive AMM. Unlike traditional constant-product AMMs or stableswap that uses a pool's token balance ratio to determine price, we use an external oracle to determine the "fair price" of a token, and then provide tight liquidity around that fair price. The advantage? Impermanent loss can be minimized (in Obric V1) or completely eliminated (in Obric V2 and V3). ### High Concentration Since liquidity is provided in a tight region centered around the fair price, liquidity becomes massively concentrated, so that: * Traders are able to get much smaller slippage * The pool can support much, much higher volume using significantly less TVL ### Zero Impermanent Loss In a constant-product AMM for a coin pair X-Y, when token X's price rises, the AMM has to sell certain amount of X, and when a token's price falls the AMM has to correspondingly buy some X. This is the primary cause of impermanent loss. In Obric V2 and V3, impermanent loss is completely eliminated by targeting a fixed amount of X when the pools are at balance. ### Market Neutrality To be documented. For now, you may watch our V3 APT-zUSDC pool's TVL for proof of neutrality. ### Passive rebalancing When our trading pools deviate significantly from their target balance, the pools automatically adjust their pricing so as to provide incentive for the market to trade the pool back to its target balance. This eliminates the trouble of manual rebalancing, and makes it easy for anyone to deploy their tokens with zero effort. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://obricxyz.gitbook.io/smart/obric-smart-liquidity-matters.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.