{"id":63032,"date":"2022-10-05T12:39:44","date_gmt":"2022-10-05T07:09:44","guid":{"rendered":"https:\/\/mudrex.com\/blog\/?page_id=63032"},"modified":"2022-10-20T16:59:43","modified_gmt":"2022-10-20T11:29:43","slug":"virtual-automated-market-makers-vamms","status":"publish","type":"page","link":"https:\/\/mudrex.com\/blog\/glossary\/virtual-automated-market-makers-vamms\/","title":{"rendered":"Virtual Automated Market Makers (vAMMs)"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"63032\" class=\"elementor elementor-63032\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-57e0c7d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"57e0c7d\" data-element_type=\"section\" id=\"navigation-sample-sec\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-46fc859\" data-id=\"46fc859\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-60010ee elementor-nav-menu--dropdown-mobile elementor-nav-menu__text-align-center elementor-hidden-mobile elementor-nav-menu--toggle elementor-nav-menu--burger elementor-widget elementor-widget-nav-menu\" data-id=\"60010ee\" data-element_type=\"widget\" id=\"nav-vategory-menu\" data-settings=\"{&quot;layout&quot;:&quot;horizontal&quot;,&quot;submenu_icon&quot;:{&quot;value&quot;:&quot;&lt;i class=\\&quot;fas fa-caret-down\\&quot;&gt;&lt;\\\/i&gt;&quot;,&quot;library&quot;:&quot;fa-solid&quot;},&quot;toggle&quot;:&quot;burger&quot;}\" data-widget_type=\"nav-menu.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<link rel=\"stylesheet\" href=\"https:\/\/mudrex.com\/blog\/wp-content\/plugins\/elementor-pro\/assets\/css\/widget-nav-menu.min.css\">\t\t\t<nav migration_allowed=\"1\" migrated=\"0\" role=\"navigation\" class=\"elementor-nav-menu--main elementor-nav-menu__container elementor-nav-menu--layout-horizontal e--pointer-underline e--animation-fade\">\n\t\t\t\t<ul id=\"menu-1-60010ee\" class=\"elementor-nav-menu\"><li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-first menu-item-54984\"><a target=\"_blank\" rel=\"noopener\" href=\"https:\/\/mudrex.com\/blog\/category\/market-update\/\" class=\"elementor-item\">Market Updates<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-67234\"><a href=\"https:\/\/mudrex.com\/blog\/category\/product-updates\/\" class=\"elementor-item\">Product Updates<\/a><\/li>\n<li class=\"menu-item menu-item-type-taxonomy menu-item-object-category menu-item-68471\"><a href=\"https:\/\/mudrex.com\/blog\/category\/people\/\" class=\"elementor-item\">People Updates<\/a><\/li>\n<li class=\"menu-item menu-item-type-taxonomy menu-item-object-category menu-item-69129\"><a href=\"https:\/\/mudrex.com\/blog\/category\/founders-desk\/\" class=\"elementor-item\">Founders desk<\/a><\/li>\n<\/ul>\t\t\t<\/nav>\n\t\t\t\t\t<div class=\"elementor-menu-toggle\" role=\"button\" tabindex=\"0\" aria-label=\"Menu Toggle\" aria-expanded=\"false\">\n\t\t\t<i aria-hidden=\"true\" role=\"presentation\" class=\"elementor-menu-toggle__icon--open eicon-menu-bar\"><\/i><i aria-hidden=\"true\" role=\"presentation\" class=\"elementor-menu-toggle__icon--close eicon-close\"><\/i>\t\t\t<span class=\"elementor-screen-only\">Menu<\/span>\n\t\t<\/div>\n\t\t\t<nav class=\"elementor-nav-menu--dropdown elementor-nav-menu__container\" role=\"navigation\" aria-hidden=\"true\">\n\t\t\t\t<ul id=\"menu-2-60010ee\" class=\"elementor-nav-menu\"><li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-first menu-item-54984\"><a target=\"_blank\" rel=\"noopener\" href=\"https:\/\/mudrex.com\/blog\/category\/market-update\/\" class=\"elementor-item\" tabindex=\"-1\">Market Updates<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-67234\"><a href=\"https:\/\/mudrex.com\/blog\/category\/product-updates\/\" class=\"elementor-item\" tabindex=\"-1\">Product Updates<\/a><\/li>\n<li class=\"menu-item menu-item-type-taxonomy menu-item-object-category menu-item-68471\"><a href=\"https:\/\/mudrex.com\/blog\/category\/people\/\" class=\"elementor-item\" tabindex=\"-1\">People Updates<\/a><\/li>\n<li class=\"menu-item menu-item-type-taxonomy menu-item-object-category menu-item-69129\"><a href=\"https:\/\/mudrex.com\/blog\/category\/founders-desk\/\" class=\"elementor-item\" tabindex=\"-1\">Founders desk<\/a><\/li>\n<\/ul>\t\t\t<\/nav>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b970105 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b970105\" data-element_type=\"section\" id=\"navigation-sample-sec2\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0e7fa4b\" data-id=\"0e7fa4b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-dc66b2d elementor-nav-menu--dropdown-mobile elementor-hidden-desktop elementor-hidden-tablet elementor-nav-menu__text-align-aside elementor-nav-menu--toggle elementor-nav-menu--burger elementor-widget elementor-widget-nav-menu\" data-id=\"dc66b2d\" data-element_type=\"widget\" id=\"nav-vategory-menu\" data-settings=\"{&quot;layout&quot;:&quot;horizontal&quot;,&quot;submenu_icon&quot;:{&quot;value&quot;:&quot;&lt;i class=\\&quot;fas fa-caret-down\\&quot;&gt;&lt;\\\/i&gt;&quot;,&quot;library&quot;:&quot;fa-solid&quot;},&quot;toggle&quot;:&quot;burger&quot;}\" data-widget_type=\"nav-menu.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<nav migration_allowed=\"1\" migrated=\"0\" role=\"navigation\" class=\"elementor-nav-menu--main elementor-nav-menu__container elementor-nav-menu--layout-horizontal e--pointer-underline e--animation-fade\">\n\t\t\t\t<ul id=\"menu-1-dc66b2d\" class=\"elementor-nav-menu\"><li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-first menu-item-61588\"><a href=\"https:\/\/mudrex.com\/blog\/glossary\/\" class=\"elementor-item\">Glossary<\/a><\/li>\n<li class=\"newsletter-bottom-sample menu-item menu-item-type-custom menu-item-object-custom menu-item-61589\"><a href=\"#newsletter-redirects\" class=\"elementor-item elementor-item-anchor\">Newsletter<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-61584\"><a href=\"https:\/\/mudrex.com\/blog\/how-to-crypto\/\" class=\"elementor-item\">How to Crypto<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-61585\"><a href=\"https:\/\/mudrex.com\/blog\/blockchain-crypto-basics\/\" class=\"elementor-item\">Blockchain &#038; Crypto Basics<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-61586\"><a href=\"https:\/\/mudrex.com\/blog\/investment-guide\/\" class=\"elementor-item\">Investment Guides<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-61587\"><a href=\"https:\/\/mudrex.com\/blog\/market-update\/\" class=\"elementor-item\">Market Updates<\/a><\/li>\n<li class=\"menu-item menu-item-type-taxonomy menu-item-object-category menu-item-70587\"><a href=\"https:\/\/mudrex.com\/blog\/category\/product-updates\/\" class=\"elementor-item\">Product-updates<\/a><\/li>\n<\/ul>\t\t\t<\/nav>\n\t\t\t\t\t<div class=\"elementor-menu-toggle\" role=\"button\" tabindex=\"0\" aria-label=\"Menu Toggle\" aria-expanded=\"false\">\n\t\t\t<i aria-hidden=\"true\" role=\"presentation\" class=\"elementor-menu-toggle__icon--open eicon-menu-bar\"><\/i><i aria-hidden=\"true\" role=\"presentation\" class=\"elementor-menu-toggle__icon--close eicon-close\"><\/i>\t\t\t<span class=\"elementor-screen-only\">Menu<\/span>\n\t\t<\/div>\n\t\t\t<nav class=\"elementor-nav-menu--dropdown elementor-nav-menu__container\" role=\"navigation\" aria-hidden=\"true\">\n\t\t\t\t<ul id=\"menu-2-dc66b2d\" class=\"elementor-nav-menu\"><li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-first menu-item-61588\"><a href=\"https:\/\/mudrex.com\/blog\/glossary\/\" class=\"elementor-item\" tabindex=\"-1\">Glossary<\/a><\/li>\n<li class=\"newsletter-bottom-sample menu-item menu-item-type-custom menu-item-object-custom menu-item-61589\"><a href=\"#newsletter-redirects\" class=\"elementor-item elementor-item-anchor\" tabindex=\"-1\">Newsletter<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-61584\"><a href=\"https:\/\/mudrex.com\/blog\/how-to-crypto\/\" class=\"elementor-item\" tabindex=\"-1\">How to Crypto<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-61585\"><a href=\"https:\/\/mudrex.com\/blog\/blockchain-crypto-basics\/\" class=\"elementor-item\" tabindex=\"-1\">Blockchain &#038; Crypto Basics<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-61586\"><a href=\"https:\/\/mudrex.com\/blog\/investment-guide\/\" class=\"elementor-item\" tabindex=\"-1\">Investment Guides<\/a><\/li>\n<li class=\"menu-item menu-item-type-custom menu-item-object-custom menu-item-61587\"><a href=\"https:\/\/mudrex.com\/blog\/market-update\/\" class=\"elementor-item\" tabindex=\"-1\">Market Updates<\/a><\/li>\n<li class=\"menu-item menu-item-type-taxonomy menu-item-object-category menu-item-70587\"><a href=\"https:\/\/mudrex.com\/blog\/category\/product-updates\/\" class=\"elementor-item\" tabindex=\"-1\">Product-updates<\/a><\/li>\n<\/ul>\t\t\t<\/nav>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-13aad4b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"13aad4b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f885924\" data-id=\"f885924\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-eae0ea8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"eae0ea8\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7c51518\" data-id=\"7c51518\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-38b6e55 elementor-widget elementor-widget-heading\" data-id=\"38b6e55\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.18.0 - 20-12-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">Virtual Automated Market Makers (vAMMs)<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-28ed94d elementor-widget elementor-widget-text-editor\" data-id=\"28ed94d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.18.0 - 20-12-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Based on the concept of automated market makers (AMMs), virtual automated market makers are used to swap virtual, synthetic assets such as derivatives contracts. Virtual Automated Market Maker (vAMM) is a new type of AMM that is expanding the applications from the swap of tokens to derivatives such as perpetual contracts. \\n\\nThere are no real assets stored inside the vAMM itself. Rather, it helps traders make leveraged trades on the basis of the collateral stored in the smart contract vault. vAMMs are not used in spot trading but used for price discovery in handling the leverage. The vAMMs calculate the entry and exit price every time a trade is executed. They function similarly to AMM style exchanges. The first generation vAMMs use a fixed formula while calculating the prices. However, the second generation vAMMs make use of concentrated liquidity design along with virtual tokens, allowing makers to provide liquidity with leverage.&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15213,&quot;3&quot;:{&quot;1&quot;:0},&quot;5&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;6&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;8&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;9&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Based on the concept of automated market makers (AMMs), virtual automated market makers are used to swap virtual, synthetic assets such as derivatives contracts. Virtual Automated Market Maker (vAMM) is a new type of AMM that is expanding the applications from the swap of tokens to derivatives such as perpetual contracts. <br \/><br \/>There are no real assets stored inside the vAMM itself. Rather, it helps traders make leveraged trades on the basis of the collateral stored in the smart contract vault. vAMMs are not used in spot trading but used for price discovery in handling the leverage. The vAMMs calculate the entry and exit price every time a trade is executed. They function similarly to AMM style exchanges. The first generation vAMMs use a fixed formula while calculating the prices. However, the second generation vAMMs make use of concentrated liquidity design along with virtual tokens, allowing makers to provide liquidity with leverage.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Virtual Automated Market Makers (vAMMs) Based on the concept of automated market makers (AMMs), virtual automated market makers are used to swap virtual, synthetic assets such as derivatives contracts. Virtual Automated Market Maker (vAMM) is a new type of AMM that is expanding the applications from the swap of tokens to derivatives such as perpetual [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"parent":61790,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"_eb_attr":"","footnotes":""},"_links":{"self":[{"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/pages\/63032"}],"collection":[{"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/comments?post=63032"}],"version-history":[{"count":5,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/pages\/63032\/revisions"}],"predecessor-version":[{"id":64862,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/pages\/63032\/revisions\/64862"}],"up":[{"embeddable":true,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/pages\/61790"}],"wp:attachment":[{"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/media?parent=63032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}