The Automated Market Maker (AMM)

The Automated Market Maker (AMM) will provide an important function in PRISM, allowing users to buy or sell PTs and YTs or to provide liquidity and earn revenue from transaction fees and liquidity incentives.
In PRISM v1.0 where LUNA is the underlying collateral used to create perpetual YTs and PTs, PRISM will have the following Liquidity Pools (LPs):
Liquidity Pools (v1.0)
$aUST ↔ $UST
There are several benefits to using $PRISM as one side of each pool:
  1. 1.
    Users will always be able to switch between one asset and another in a maximum of two steps.
  2. 2.
    When stablecoins are one side of each pool it can result in capital inefficiency for liquidity providers who may only be 50% exposed to the assets they desire to hold at any given point in time.