A standard AMM can be capital inefficient because it spreads liquidity across ALL possible prices — from $0 to infinity. Most of that range never sees a single trade. – It has the advantage of not requiring any maintenance, but you may earn less fees per swap.
Bitflow’s HODLMM – Concentrated Liquidity Engine – allows the Liquidity Provider (LP) to concentrate their liquidity within a specific price range. You are focusing your liquidity where the trading action is happening, thus earning more fees per swap.
Like watering an entire football field to grow only a few flowers.
This inefficiency exists because traditional AMMs spread liquidity across ALL possible prices — from $0 to infinity. Most of that range never sees a single trade.
HODLMM: (High-throughput, Orderbook-style, Decentralized Liquidity Market Maker)
Like using a precision irrigation system that only waters the flowerbeds where you know growth is happening.
Instead of spreading liquidity everywhere, HODLMM solves this by concentrating liquidity where trades actually happen.
The result: More yield with less capital, and less slippage around the market price.