TWMM enables liquidity pools that are significantly
more capital-efficient and secure than traditional
AMMs. By utilizing oracles and a novel fee mechanism
it ensures the best execution for large trades and
gives liquidity providers maximum capital control
A New Era
for On-Chain Liquidity
Arcanum introduces a new crypto
primitive for a decentralized
on-chain liquidity provision: the Target-Weight Market Maker
TWMM enables liquidity pools that are significantly more capital-efficient and secure
than traditional AMMs.
By utilizing oracles and a novel fee mechanism
it ensures the best execution for large trades and
gives liquidity providers maximum capital control
Target Weight
Market Maker
The Target-Weight Market Maker (TWMM) manages multi-asset liquidity in a vault structure . A manager sets a "Target Weight" for each asset to define the pool's ideal balance
A dynamic fee system then penalizes
trades that increase imbalance and rewards trades that correct
it. This mechanism mitigates Loss-Versus- Rebalancing
(LVR) and reframes
Impermanent Loss into a manageable
part of a portfolio strategy
Arcanum redesigned tokenomics from the ground up . The protocol revenue token, $AAA, captures 100% of protocol revenue, which is used to build its intrinsic value and create a permanent price floor
This creates a sustainable ecosystem . Liquidity is of the treasury's assets. This directly links the token's value to the protocol's performance, ensuring our goals are always aligned with our token holders