JENGEVBuys. Sells. Every swap.

How Metric works

Metric is an on-chain market maker. It looks like an AMM to traders, but inside it works more like an order book that follows a price feed. Here is what that means for liquidity providers.

1. Bins follow the market

On a range AMM or a DLMM, liquidity sits at fixed prices. If the market moves away, your liquidity is out of range and stops earning until you move it. On Metric, every bin is an offset from a reference price that a price provider supplies. When the market moves, the reference moves, and your liquidity moves with it.

Range AMM / DLMMMetricprice thenprice nowBins sit at fixed prices. When the market moves away,liquidity is out of range and earns nothing until moved.reference price nowBins are offsets from the reference price (e.g. +0.02%).When the market moves, the whole shape moves with it.No trade, no repositioning.
Your liquidity stays around the market price. It still holds the tokens, so their price moves still affect its value.

2. Who does what

A price provider (a smart contract) gives the pool a bid, an ask and a reference price at every swap. Traders swap at those prices. LPs deposit the two tokens into bins. The curator chooses the provider and the pool settings (stop-loss, velocity guard, bins, curator share).

Metric poolbins of liquidityaround the referencePrice providerbid · reference · askTradersswap at bid / askLPsdeposit tokensCuratorchooses provider & settingsSpread revenue split (this curator's pools)LPs 80%Metric 15%Curator 5%Traders pay no separate fee: the price itself includes the spread.LP earnings stay in the bins and compound automatically.

3. How LPs earn

There is no separate swap fee: the spread between bid and ask is the revenue. When a trade pushes the pool slightly away from the reference, arbitrage pulls it back, so the bins near the reference are used again and again. Earnings stay in the bins and compound automatically.

1. A trader buyspays the ask(reference + half-spread)pool moves slightly abovethe reference2. Arbitrage sells backthe pool is now pricierthan the market, sosomeone sells at the bidand it returns to zero3. LPs keep the spreadbought at the bid,sold at the ask:the difference stayswith the LPs (80%)The bins closest to the reference are used again and again, so that is where liquidity earns the most.Earnings stay inside the bins and compound; there is nothing to claim.

4. What does not change

  • Your position holds the two tokens. If the token price falls, the value of your position falls too. Bins following the market keep you earning; they do not protect against price moves.
  • Safety extensions (stop-loss, velocity guard) can pause one direction of trading for a while. Withdrawals always work.

Next: why Jengev →