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# ALEX Lab
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## What is ALEX?
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{% hint style="danger" %}
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🚀 **DAMM is coming soon!**
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🚀 **DAMM is coming soon!**
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ALEX's next-gen Discrete AMM is almost here, bringing concentrated liquidity and smarter swap mechanics to the DEX.
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[See what’s coming...](./whats-new/damm.md)
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[Learn more here...](./whats-new/permissionless.md)
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{% endhint %}
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## What is ALEX?
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ALEX is building the finance layer on Bitcoin. The ALEX DEX is the largest on Bitcoin layers (Stacks Chain) fully integrated with Brotocol, our cross-chain bridge aggregating liquidity across L2s and multi-chain, with LISA as our liquid staking platform. 
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We’re creating a seamless user experience, enabling one-click trading and asset transfer across blockchains that abstract away wallet and network complexity. All roads lead to Bitcoin, and all roads on Bitcoin meet on ALEX.
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To learn about the math and architecture behind DAMM, check out the detailed breakdown on [our Medium post](https://medium.com/alexgobtc/damm-alex-amm-v3-discrete-automated-market-maker-fa6b2926a69b).
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## ✅ What Can You Do with DAMM?
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## 🚀 Key Innovations in DAMM
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**🔸 Discrete Liquidity Bins**
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LPs no longer need to spread their liquidity across the entire price curve. Instead, they can choose specific “bins” (price ranges where they expect trading to occur). This lets them use their capital more efficiently by focusing it where it's most likely to be used.
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**🔸 Virtual Balances (Smoother Price Curves)**
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DAMM introduces virtual balances, which are essentially imaginary tokens added to each bin’s reserves to help shape the price curve. Even when liquidity is focused in specific bins, virtual balances help smooth out price changes. This means more stable prices for traders and a better overall experience without affecting how LPs manage their positions.
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Virtual balances are imaginary tokens temporarily added to each bin’s reserves to simulate extra liquidity. This helps smooth out price transitions between bins, preventing sudden jumps when a bin’s real liquidity runs out. As a result, traders get more stable pricing even when liquidity is concentrated, without affecting how LPs manage their positions.
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**🔸 Improved Position Management**
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LPs can update their positions at any time by adding or removing a portion of their liquidity. The protocol supports batch actions, so instead of managing each price bin individually, LPs can add liquidity to multiple bins in one go or reduce all of them by a set percentage in a single step. This makes it easier to adjust to the market or manage exposure without needing to withdraw everything.
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**🔸 Flexible Fee Structure with LP Incentives**
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Each pool on DAMM can set its own trading fees when it’s created. These fees can be configured separately for each token in the pair, meaning the cost of swapping from Token X to Token Y can differ from the opposite direction. A portion of the collected fees can also be given back to LPs as extra rewards, helping attract and retain liquidity more effectively.
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**🔸 Advanced Swap Mechanics (IOC/FOK Orders and More)**
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DAMM preserves the simple experience of swapping tokens with a slippage setting, but also adds advanced features like Immediate-or-Cancel (IOC) and, in the future, Fill-or-Kill (FOK). These tools give traders more control over execution, helping avoid bad fills and improving trade precision.
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## ▶️ Coming Soon
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