Introduction to POE

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: Vaults provide liquidity, 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 Constant Product (CLCP) model.

The Two-Layer System

Layer	Who	Role
Pricing	Market Maker (Oracle Operator)	Sets reference price, concentration range, and fees
Liquidity	Community (Anyone)	Deposits tokens, earns swap fees

Price Calculation

The execution price comes from both components:

1. Oracle data — The operator sets a center price (P) and concentration factor (α), defining the price range [P/α, P×α]

2. Pool reserves — Determine the exact price within that range based on supply/demand

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, a high-performance EVM-compatible blockchain where the gas economics make frequent oracle updates viable.

Getting Started

Explore the documentation to learn how to integrate with POE:

• Tracking Price — Understand the CLCP pricing model and read current prices

• Tracking Liquidity — Monitor reserves, balances, and liquidity changes

• Making a Swap with POE— Execute swaps and implement the callback interface