Liquidity Pools and Basket Assets

Liquidity is the backbone of Amara. The protocol uses two different models for liquidity, reflecting its hybrid nature. On the perpetual side, collateral is concentrated in vaults that back leveraged trading. On the spot side, liquidity is distributed across token pairs in automated market maker pools. Together, these models create a layered liquidity system that supports both speculation and stable trading.

Perpetual Vault Pools The perpetual DEX relies on vault-based liquidity, similar to GMX. Liquidity providers deposit assets into the Vault, which then serve as collateral for traders. Profits and losses from leveraged trades are paid out of, or accrued to, this pool.

• Composition: Vaults accept stablecoins like USDC, native assets such as DIONE and others as planned.

• Balance Management: The Vault tracks positions in real time, adjusting balances as trades are opened or closed.

• Risk Controls: Caps and weight limits can be applied to different assets to prevent overexposure to a single market.

• Revenue Generation: Vault participants earn fees from trading activity, including swap fees, funding fees, and liquidation penalties.

This design ensures that perpetual markets have deep, consistent liquidity and that traders always interact with a shared pool of collateral.

Spot AMM Pools AmaraSwap uses traditional AMM pairs to provide spot liquidity. Each pool consists of two tokens locked in a smart contract. Traders swap against the reserves, while liquidity providers earn fees proportional to their share of the pool.

• Pair Creation: Pools are deployed through the Factory contract, with each pool managed by its own Pair contract.

• LP Tokens: When liquidity is added, the pool mints LP tokens to represent ownership. When liquidity is removed, LP tokens are burned.

• Fee Accrual: Swap fees are distributed to liquidity providers, with an optional portion routed to protocol-controlled addresses for treasury purposes.

• Integration: Pool data, such as reserves, trading volume, and APR, is surfaced through subgraphs and displayed in the Amara frontend.

Initial pools may include Amara/DIONE and DIONE/USDC, providing the foundation for core trading activity. Over time, new pools will be introduced for synthetic sustainability assets, expanding market depth and diversity.

Green Basket Index (Future) A planned feature of Amara is the creation of a pooled token that represents a basket of synthetic carbon credits and offsets.

• Purpose: The Green Basket Index will give users one-click exposure to multiple sustainability assets, reducing the need to manage individual markets.

• Design: The index will be backed by a mix of synthetic carbon credits, each with assigned weights.

• Utility: Traders can speculate on the broader carbon market, while institutions gain a diversified entry point into DeFi sustainability assets.

By combining vault-based perps liquidity, AMM spot pools, and the future Green Basket Index, Amara builds a liquidity framework that is both flexible and forward-looking. It not only serves current DeFi needs but also sets the stage for scaling into institutional-grade sustainable finance.