Automated Market Making for Perpetuals

Explain how AMM mechanisms work specifically for perpetual swaps and your experience implementing them.

Introduction to AMM Perpetuals

What to write about:

• How AMMs differ from traditional order book perpetuals
• Benefits and drawbacks of AMM-based perpetuals
• Key protocols using this approach
• Your experience at Opyn with AMM integration

Core Mechanics

What to write about:

• Virtual AMM (vAMM) concepts
• Funding rate calculations in AMM systems
• Liquidity provision and LP incentives
• Slippage and price impact considerations

Implementation Challenges

What to write about:

• Smart contract complexity
• Gas optimization for AMM operations
• Handling large position sizes
• Integration with external price oracles

Code Examples

Include:

• Virtual AMM pricing formulas
• Funding rate calculation logic
• Liquidity provision mechanisms

Share your technical insights on building AMM-based perpetual systems.
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