7.1 - AMM Architecture

nest is built around a unified AMM: one venue + one router that can support multiple pool types without fragmenting liquidity. The goal is simple, best execution for traders and the right liquidity shape for each asset, all under one governance/incentive surface.

At the core, nest uses a Concentrated Liquidity AMM (CLAMM) based on Algebra Integral, where LPs can provide liquidity inside a chosen range to increase effective depth near the current price.

Why this matters:

• Modular architecture: keep core pricing/liquidity accounting more immutable, extend behavior via plugins/hooks (less migration, less fragmentation).

• Dynamic fees (where enabled): fees can adjust with conditions (volatility/volume) to balance execution vs LP risk.

• Hooks (where enabled): pools can add behaviors like launch protections to reduce early bot exploitation on new launches.

• Multiple pool types: not every asset should live in the same curve; unified routing keeps it cohesive.

Important distinction:

• Pools can be permissionless (anyone can deploy/provide liquidity),

• but emissions are governance-directed (veNEST decides where incentives go).