Dynamic AMM
DeFi · Deep
An automated market maker that adjusts its pricing curve parameters dynamically based on real-time market conditions such as volatility, volume, and asset correlation. Unlike static constant-product AMMs (x*y=k), dynamic AMMs optimize capital efficiency and reduce impermanent loss by adapting fees and liquidity concentration. Meteora's Dynamic AMM on Solana uses a virtual price curve with dynamic fees that increase during volatile periods.