Lesson 2.2 - What is the HODLMM?

HODLMM – High-throughput, Orderbook-style, Decentralized Liquidity Market Maker.

It’s a concentrated liquidity engine with institutional-grade orderbook precision, designed for assets you want to HODL. You can focus your capital in specific price ranges instead of spreading it everywhere.

What does this mean?

For Traders

• Zero price impact within the active bin: Designed to minimize price impact and deliver best rates
• Deep Liquidity: High utilization of capital means tighter spreads.
• Aggregator Friendly: Smart routing finds optimal bins across pool types.

For Liquidity Providers

• High Capital Efficiency: Earn more fees per $ of liquidity provided.
• Custom Strategies: Deploy liquidity based on volatility profile, trend predictions, or custom fee logic.
• Keeper Automation: Bitflow repositions LP ranges when prices move, making it easier to manage positions. (Coming soon).

More Control = More Yield

Bitflow’s HODLMM is an orderbook-style AMM, a concentrated liquidity engine designed for assets you want to HODL in the expanding Bitcoin capital markets.

• It enables liquidity providers (LPs) to allocate capital within defined price bins, delivering zero price impact within the active bin, dynamic fees, and Bitflow Keeper automation, delivering more YIELD, and more CONTROL over your assets.
• The HODLMM allows you to shape that liquidity into even more capital efficient ways.
• It has additional features too:
• Single sided liquidity deployment – you can deposit only one of the tokens instead of both if you wish. More flexibility.
• Dynamic Fees – The fee you earn on swaps can increase, dynamically, based on how volatile the token is, which helps to overcome losses.
• Zero price impact within the active bin– Unlike classic AMMs where every trade moves the price, HODLMM's bin system lets trades execute at a fixed price within the active range.
• Implementation of different strategies – mix them up to shape it your way!
• Select from: SPOT, CURVE, and BID-ASK.