What Is Duality?
Duality is a Cosmos app-chain exchange optimized for capital efficiency and composability. It is built using liquidity pools with constant prices, which allows any AMM (automated market maker) curve to be built on top of it while using the same liquidity.
Background
Nicholas Evans, Elijah Fox, and Ron Miasnik released Duality in 2022.
How It Works
Duality aims to create fair, open, and efficient markets. It implements an innovative design, merging the benefits of automated market makers (AMMs) and order books for optimal computational efficiency and flexibility. The hybrid AMM – order book design of Duality is predicated on the understanding that AMMs represent tokenized trading strategies layered over an order book. This design allows traders and liquidity providers more flexibility in expressing their preferences.
Duality allows traders to select from a variety of order types. Liquidity providers can approximate any feasible AMM curve, supporting diverse liquidity distributions. Shared liquidity is a crucial feature, reducing fragmentation and deterring price manipulation. Duality’s design is capital-efficient, enabling liquidity providers to focus on a single price and fee. There is zero slippage at a single price, but slippage can occur at other prices due to liquidity variation.
Key Takeaways
- Duality is a decentralized exchange built on the Cosmos app chain, optimized for capital efficiency and composability. It allows any automated market maker (AMM) curve to be built on top of it using the same liquidity.
- It was released in 2022 by Nicholas Evans, Elijah Fox, and Ron Miasnik.
- Duality merges the benefits of AMMs and order books for optimal computational efficiency and flexibility. This hybrid design allows traders and liquidity providers more flexibility.
- Traders can select from various order types, and liquidity providers can approximate any feasible AMM curve. Shared liquidity is a crucial feature of Duality.
- Duality’s design is capital-efficient, enabling liquidity providers to focus on a single price and fee. Zero slippage occurs at a single price, but slippage can occur at other prices due to liquidity variation.
