💧 AMM & Liquidity
V3-style DEX
Concentrated liquidity
Lower fees, tighter spreads
Dynamic APRs based on TVL and trading activity
KaspaFinance features a next-generation Automated Market Maker (AMM) based on the Uniswap V3 model — enhanced by the speed and parallelism of the Kaspa DAG Layer 1. The AMM is at the heart of KaspaFinance's trading engine, enabling fast, permissionless swaps and efficient price discovery across key pairs like $KAS, $KFC, $USDC, and $ETH.
🔁 How Our AMM Works
Unlike traditional DEXs where liquidity is distributed evenly across all price ranges, our concentrated liquidity model allows liquidity providers (LPs) to select specific price ranges in which to deploy capital.
This approach offers:
Tighter price curves
Lower slippage for traders
Higher capital efficiency for LPs
Each pool on KaspaFinance acts as a liquidity bin, and trades are routed across bins that best match a user’s price range.
💰 Fee Tiers
Each liquidity pool may offer different fee tiers, enabling LPs to choose a strategy that matches their risk profile and expected volatility:
Low fee (0.05%) – Ideal for stable pairs like KFC/USDC
Medium fee (0.3%) – Balanced risk/reward, typical for KAS/ETH
High fee (1.0%) – Suitable for exotic or volatile token pairs
These fees are:
Paid directly to LPs based on usage of their capital within the selected range
Collected automatically into the pool and claimable at any time
🧮 Capital Efficiency
Thanks to concentrated liquidity, LPs can:
Deploy capital within tighter bands where price action is likely to occur
Reduce idle liquidity
Earn higher fee income with less total value deposited
For example, instead of providing $10,000 across the entire price spectrum, a user could provide $2,000 between $0.35–$0.50 for the KFC/USDC pair — earning more fees if trades stay in that zone.
📊 Dynamic Liquidity Management
KaspaFinance’s AMM system includes:
Liquidity Mining Incentives – Earn additional $KFC for LP positions
Auto Rebalancing Tools (coming soon) – Recenter your range automatically
Liquidity Analytics Dashboard – Visualize where your liquidity sits and how it's performing
🔗 Interoperable Pools
All liquidity pools are:
Permissionless (anyone can create a pair)
Token-agnostic (as long as verified via KFC governance or whitelisted UI)
Composable with other modules (e.g., LP tokens can be staked in farms or used as lending collateral)
🧠 AMM Benefits on Kaspa DAG
Kaspa’s blockDAG enables an unmatched trading experience:
Parallel block production = faster pool updates and transaction confirmations
Reduced latency during volatile markets
No MEV congestion or reorg-induced slippage
Enhanced UX for arbitrage, routing, and real-time arbitrage opportunities
🌐 Key Liquidity Pairs
KaspaFinance supports a growing list of popular and ecosystem-native pairs, such as:
KFC / KAS
KFC / USDT
KAS / ETH
KAS / BTC
KFC / Partner Tokens
Projects can also launch their own incentivized pools with single, dual, or triple emission farming.
🛠 Coming Soon
Dynamic Range Pools (recentered automatically)
Fee Optimization Bots for LPs
Layered liquidity with external integrations (KaspaBridge, L2 support)
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