# OAMM

OAMM pools are designed to act as AMM pools while tying directly to ICDEX’s live orderbooks. The implementation of OAMM pooling is aimed at addressing an age old problem with Orderbook style Decentralized Exchanges; complexity and lack of efficiency in providing liquidity to a pairing.

The function and interface for these pools is very similar to any typical AMM like Uniswap and so liquidity providers familiar with these types of AMM platforms will find it extremely intuitive to utilize.

Tying liquidity pools like this directly to our live orderbooks is made possible by using a Grid Strategy based order mechanism that is designed to simulate the effect of traditional AMMs. It places both buy and sell orders and tries to keep a tight spread in the orderbook while adjusting to real time market conditions when trades occur on the pair.&#x20;

The end result is that these pools offer a similar risk profile to what you would expect on a typical AMM when providing liquidity and help to get traders fairer prices when they’re trading at market price. Ensuring everybody is happier.

#### OAMM pools carry a similar risk profile to typical AMM exchanges however there are additional avenues for profit for these pool versus an AMM:

* <mark style="color:green;">**Grid Spread Gain:**</mark> which is determined by the pairing’s volatility and the grid strategies’ effectiveness.

  This component would be most easily compared to that of a market making bot where a trader is buying and selling at the same time to achieve small percentages of profit from each trade. This has been a commonly employed tactic for a very long time however market conditions can negatively impact your position just like they would on a traditional AMM pool.
* <mark style="color:green;">**VIP-Maker Rebate:**</mark> ICDEXMaker has the role of vip-maker, which is something typically granted through binding our Neptune Planet Card NFT to your account, and so the orders placed on behalf of the pool by ICDEXMaker qualify for a trading fee rebate. This rebate earns the VIP-Maker, in this case the pool, 90% of the taker’s trading fee and the gain from this is added back into the liquidity pool.
* <mark style="color:green;">**Withdraw Fee Gain:**</mark> Each pool has a withdrawal fee set in place that liquidity providers must pay when removing liquidity from the pool. This fee is added back into the pool to benefit those who remain in it. This fee varies for each pool however its generally going to be a fraction of a percent. For example in the ICL pool the withdrawal fee is .1%. This way, the user withdrawing isn’t majorly effected however those who stay in the pool long term may see these kinds of fees add up over time as more people join and leave the pool in question while they’re active in it.
* <mark style="color:green;">P</mark><mark style="color:green;">**articipation in Liquidity Mining events or Airdrops:**</mark> This part of the profit model to OAMM pools in entirely contingent on what events are ongoing at any given time and there’s never a guarantee of a certain pool having one of these events hosted. However if you monitor our community channels for announcements we have had several of these in recent months. Earning liquidity providers tens of thousands of dollars.

Below are some helpful tutorial videos centered on this topic:

[Tutorial For Providing Liquidity To OAMM Pools](https://www.youtube.com/watch?v=7dpW9TZQnBw\&t=2s)

[Tutorial For Creating New OAMM Pools](https://www.youtube.com/watch?v=lVAnEsrIZqg)

Below, we have an article which puts the profit potential of OAMM pools into perspective using the ICL/ICP pool as an example:

[OAMM | How the ICL Pool Provides Impressive Returns](https://medium.com/@ICLighthouse/oamm-how-the-icl-pool-provides-impressive-returns-9c3bd515ee61)[<br>](https://www.youtube.com/watch?v=lVAnEsrIZqg)


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