Drift Protocol is the first perpetual swap exchange to leverage a Dynamic AMM (DAMM). The DAMM was pioneered by our team and it is a based on a virtual AMM (vAMM) - with its key innovation being that it introduces repegging and adjustable k mechanisms to recalibrate liquidity in a trading pool based on participant demand. DAMMs, as a result, have the ability to be more flexible than traditional vAMMs and AMMs, which lead to better capital efficiency and reduced slippage.
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