🤖 Automated market maker (AMM) model

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

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 dedicated section in our technical specifications within this documentation.