Rho Protocol Documentation
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  • ๐ŸŒŸ Getting started
    • ๐Ÿ“„ Overview
    • ๐Ÿ’ก Why go with Rho?
    • ๐ŸŽฏ Key use cases
    • ๐Ÿ›ก๏ธ Safety and dependability
    • ๐Ÿ‘จโ€๐Ÿ‘ฉโ€๐Ÿ‘งโ€๐Ÿ‘ฆ Who does Rho Protocol benefit?
  • ๐Ÿ“‹ PRODUCT GUIDE
    • ๐Ÿ”ง Product basics
      • ๐Ÿ“ˆ PnL mechanics: How to profit with Rho
      • ๐Ÿ“‰ DV01: Fixed income's delta
    • ๐Ÿ’น Margin and leverage on Rho
      • ๐Ÿง  Is 50x leverage high for a rates trade?
    • ๐Ÿ“… Maturity selection in interest rate futures
    • ๐Ÿค– Automated market maker (AMM) model
    • ๐Ÿ’ผ Leveraging interest rate futures at Rho Protocol
    • ๐Ÿฆ Rho Liquidity Vault
    • โ—Risks
  • ๐Ÿš€ How to trade on Rho
    • ๐Ÿ“– New user guide: Start here
    • ๐Ÿ’ฐ Depositing collateral
      • ๐Ÿ”— Cross-chain deposits
      • ๐Ÿงช Requesting testnet assets
    • ๐Ÿ“Š Dashboard overview
    • โšก Executing your first trade
    • ๐Ÿ”€ Switching environments
    • ๐Ÿ”™ Review and adjust
  • ๐Ÿ—‚๏ธ Trading products: Technical specifications
    • ๐Ÿ‘‰ Rho rate futures
    • ๐Ÿ”จ Trading mechanisms and models
    • ๐Ÿงฎ P&L Calculation
    • ๐Ÿงพ Fees Structure Overview
      • Liquidity Provider (LP) Fees
      • Protocol fees
      • Time to Maturity
      • Price Impact and Variable LP Fee
      • Summary: Total Fee Calculation
      • Example 1: 31 Days to Maturity
      • Example 2: 1 Day to Maturity
    • ๐Ÿ›ก๏ธ Risk management and margin details
  • ๐Ÿ—๏ธ Practical applications and use cases
    • ๐ŸŒณ Hedging against interest rate fluctuations
    • ๐Ÿ’ต Opportunities to capitalize
    • ๐ŸŽฏ Arbitrage strategies
    • ๐Ÿ’ธ Income generation through enhanced yield strategies
    • ๐ŸŒฑ Portfolio diversification
  • โ‰๏ธ Frequently Asked Questions
    • ๐Ÿ“ฅ For Vaults depositors
    • ๐Ÿง How and why should I begin trading IRDs on Rho Protocol?
    • ๐Ÿ’ผ What digital wallets does Rho Protocol support?
    • ๐Ÿ”ง How can I effectively manage my collateral at Rho Protocol?
    • ๐Ÿšจ What can I do to prevent being liquidated?
  • ๐Ÿ› ๏ธ Troubleshooting
    • ๐Ÿ”— Connecting wallets
    • โŒ Failed transactions / trades
    • ๐Ÿ”Ž Viewing transactions
    • ๐Ÿ“ž Contact support
  • ๐Ÿ‘จโ€๐Ÿ’ป Developer docs
    • ๐Ÿ“„ Contracts overview
      • ๐Ÿ—ƒ๏ธ Types, structs and enums
      • ๐Ÿ“ก Router contract
      • ๐Ÿ’ฌ Quoter contract
      • ๐Ÿ‘“ ViewDataProvider
    • ๐Ÿ’ป Rho SDK
      • ๐Ÿ“š Technical Reference
  • ๐Ÿ”ง Deployed contracts
    • ๐Ÿงช Testnet addresses
    • ๐Ÿ”‘ Mainnet addresses
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  • Trade mode
  • Earn mode
  1. ๐Ÿ“‹ PRODUCT GUIDE

๐Ÿค– Automated market maker (AMM) model

The AMM model at Rho Protocol is designed to facilitate efficient trading.

Previous๐Ÿ“… Maturity selection in interest rate futuresNext๐Ÿ’ผ Leveraging interest rate futures at Rho Protocol

Last updated 11 months ago

Trade mode

In Trade mode, traders execute market orders directly against the virtual Automated Market Maker (vAMM) pool.

Currently, this mode supports market orders only, with fees applicable to each trade.

Future updates will introduce limit orders and an order book to enhance trading options.

Earn mode

Earn mode allows traders to act as market makers by providing liquidity to the vAMM pool. Market makers in this mode earn fees from the liquidity they provide.

Additionally, Rho supports the use of the same account and margin for both Trade and Earn modes, enabling seamless operation across both functionalities.

For more information about Rho's vAMM model, please see the within this documentation.

dedicated section in our technical specifications