Biswap V3 AMM Protocol Design
This paper presents Biswap V3, an innovative decentralized exchange protocol that employs a novel discretized concentrated liquidity mechanism as the Automated Market Maker (AMM) on the BNB Smart Chain.
The primary objective of this research is to design and implement a new version of the AMM that enables more efficient utilization of liquidity, leading to enhanced trading volumes and augmented liquidity provider (LP) profit.
Biswap V3 is specifically designed to run on the Ethereum Virtual Machine and ensures a stable Annual Percentage Rate (APR) by boosting trading volumes and LP profit. This mechanism combines concentrated liquidity from liquidity providers with one-off liquidity from limit orders, allowing for minimal price slippage on trades and the flexibility of limit orders.
The introduction of Biswap V3 aims to advance the DeFi ecosystem by offering liquidity providers greater capital efficiency, control, and flexibility and implementing new functionalities not achievable with the existing AMM solution. This innovative approach will create a more efficient and profitable trading environment for Biswap users.