What is HODLMM?
HODLMM (High-throughput, Orderbook-style, Decentralized Liquidity Market Maker) is a concentrated liquidity AMM on Stacks that allows liquidity providers to allocate capital within custom price ranges.
Core Components
Price Bins
HODLMM partitions the price space into discrete bins. Each bin represents a specific price level where liquidity can be allocated. When trades occur within a bin containing liquidity, they execute at the exact bin price with zero slippage.
Concentrated Liquidity
Instead of distributing liquidity from 0 to ∞, LPs concentrate capital within selected price ranges. This increases capital efficiency as all deposited funds remain active within the chosen range.
Liquidity Shapes/Strategies
HODLMM provides three pre-configured distribution patterns:
SPOT: Uniform distribution across selected range
CURVE: Bell-shaped concentration around current price
BID-ASK: V-shaped with liquidity at range boundaries
*LPs may also create custom bin layouts beyond these templates.
Active Liquidity
When price moves outside an LP's selected range, the position becomes inactive and stops earning fees. The position reactivates when price returns to the range.
Bitflow Keepers
Automated contracts that manage liquidity positions by:
Rebalancing positions when price exits range
Harvesting accrued fees
Compounding returns
Adjusting ranges based on configured parameters
Dynamic Fees
Fee tiers adjust based on market volatility. Higher volatility triggers higher fees, compensating LPs for increased risk.
Zero price impact within active bin
Within a single bin: Price is fixed. Trades execute at that exact price until the bin's liquidity is exhausted. This means zero price impact for trades that stay within the active bin.Across multiple bins: When a trade is large enough to exhaust the active bin, it crosses into the next bin at a slightly different price. This creates some price impact — which is expected and normal.