What It Is
HODLMM (High-throughput Orderbook-style Decentralized Liquidity Market Maker) is a concentrated liquidity engine built on Bitcoin via Stacks. It replaces the capital-inefficient constant-product AMM model with discrete price bins that deliver orderbook-style precision.
How It's Different
Feature | Legacy AMMs | HODLMM |
Capital efficiency | 1x (liquidity spread $0 → infinity) | 800x (concentrated in active bins) |
Slippage | Varies by trade size | Zero inside active bins |
LP management | Manual, constant monitoring | Strategy Vaults for hands-off earning |
Strategy options | One size fits all | 3 shapes: Spot, Curve, Bid-Ask |
Yield stacking | Trading fees only | sBTC consensus yield + trading fees |
Three Strategy Shapes
Spot — Wide spread, steady fees, lower risk. Best for passive holders.
Curve — Concentrated around market price, higher yield potential. Best for active LPs.
Bid-Ask — Liquidity at the edges to capture price swings. Best for professional LPs.
Yield Structure
Base layer: sBTC holders earn 0.3-0.5% from Stacks consensus — just for holding
LP layer: Deploy into HODLMM to earn 3-5% additional from trading fees
Combined: Dual-yield stacking from a single position
Quick Reference — Key Stats
Capital efficiency | 800x vs traditional AMMs |
Committed liquidity | $40M+ from professional market makers |
Slippage | Zero inside active price bins |
Settlement | 6 blocks |
Strategy shapes | 3 (Spot, Curve, Bid-Ask) |
sBTC base yield | 0.3-0.5% from Stacks consensus |
LP yield (on top) | 3-5% from trading fees |
sBTC custody | 15 institutional signers, 70% threshold |