# Introduction to POE

| Layer         | Who                            | Role                                                |
| ------------- | ------------------------------ | --------------------------------------------------- |
| **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**

| Layer         | Who                            | Role                                                                                                    |
| ------------- | ------------------------------ | ------------------------------------------------------------------------------------------------------- |
| **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:

1. **Oracle data** — The operator sets a center price (P) and concentration factor (α), defining the price range **\[P/α, P×α]**
2. **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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