AOM

Automated Orderbook Maker explainer

Current version: zkFlip AOM v0.1

The AOM Contract is an on-chain contract that automates the creation of orders for a user. The frontend allows a user to select between two assets, input the amount of liquidity they want to provide, and choose a method of distribution for that liquidity on the books.

A frontend algo will then take this data and generate the info for each order. The info for each order is batched together and submitted to the AOM, along with the user’s provided liquidity. The AOM contract will begin placing each order on-chain into the Exchange contract.

If the user selects the “time lock” option for AOM, they will be locking up their liquidity into the Exchange contract for a predetermined amount of time and cannot remove it off of the books.

This feature is generally to help stabilize liquidity and prevent “rugging” from liquidity providers on newly formed markets. The received NFT can serve as proof of your locked liquidity.

The LP position within an AOM is always represented by an LP NFT in the wallet the user has used to deploy liquidity. The liquidity provider while creating a new AOM distribution can also specify a different receiving address for the NFT.

You can pick from different distribution strategies that will be updated and expanded on as time goes.

The AOM will launch with 5 distribution patterns and will be heavily expanded on and developed further as a major tool unique to zkFlip.

Distribution patterns are mathematical and algorithmic equations that lead to certain asks and bids on the orderbook. Our AOM helps you decide and automatically sets up the orderbook in a way you feel is a good choice after seeing the guidance of the AOM.