Introduction to POE
Pricing
Market Maker (Oracle Operator)
Sets reference price, concentration range, and fees
Liquidity
Community (Anyone)
Deposits tokens, earns swap fees
POE is a Prop-AMM that combines multivenue-driven pricing to deliver the most accurate and efficient swaps.
What is a Prop AMM?
Proprietary AMMs are liquidity pools where the price is computed by aggregating multiple sources, rather than relying on reserve ratios alone. This approach is highly capital efficient: overcoming traditional liquidity pools impermanent loss and MEV extraction.
POE's approach: Pools hold the LP-deposited tokens, while POE handles pricing quotes. This separation enables capital-efficient swaps with deep liquidity.
How POE Works
POE is built on OraclePool — a smart contract implementing the Concentrated Liquidity with Asymmetric Pricing (CLAP) model. CLAP is an extension of the simpler CLCP (Concentrated Liquidity Constant Product) curve: trades that rebalance the pool toward equal value execute at the flat oracle price, while the remainder follows the concentrated-liquidity curve.
The Two-Layer System
Pricing
Oracle Operator (Market Maker)
Off-chain actor authorized to push price, concentration range (α) and fees via the oracle's setData()
Liquidity
Community (Anyone)
Deposits tokens, earns swap fees
Price Calculation
The execution price comes from both components:
Oracle data — The operator sets a center price (P) and concentration factor (α), defining the price range [P/α, P×α]
Pool balances — Determine the exact price within that range based on supply/demand. Under CLAP, trades that move the pool toward 50/50 value execute at the flat oracle price P; trades that push the pool further from balance execute on the curve.
This hybrid model keeps prices tight to market while maintaining permissionless trading.
Why POE?
No traditional impermanent loss — Algorithm-driven pricing protects liquidity providers
No MEV leakage — Prices update faster than arbitrageurs can extract value
Fast price updates — Price feeds are updated and aligned with external markets
Key Features
Best Execution Price
Algorithm-driven pricing keeps execution prices tightly aligned with external markets, delivering better rates than traditional AMMs.
High Throughput
Designed for volume. The gas-efficient oracle update mechanism supports high-frequency price adjustments without excessive costs.
Easy Integration
Callback-based swap interface enables straightforward aggregator integration and composability with other DeFi protocols.
Network
POE is deployed on:
Monad (chain ID
143) — high-performance EVM-compatible chain where the gas economics make frequent oracle updates viable.Avalanche C-Chain (chain ID
43114).
See POE Contracts for the per-chain addresses.
Getting Started
Explore the documentation to learn how to integrate with POE:
Discovering Pools — Enumerate or look up pools via the Factory (no hard-coded addresses needed)
Tracking Price — Read the current bid/ask spread from the oracle and pool
Tracking Liquidity — Monitor pool balances and liquidity changes
Making a Swap with POE — Execute swaps and implement the callback interface
CLAP Oracle Formula — Full math reference for off-chain quoting
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