Carbon is a next-generation AMM protocol that introduces a number of innovative design features that greatly increase the possible use cases for this technology class. The key new feature introduced is that of asymmetric liquidity, where any given bonding curve only trades in a single direction, effectively being an out-ofthe-money limit order. Two curves can then be linked together into more advanced trading and market-making strategies. Combined with a sophisticated routing and arbitrage design, Carbon expands the design space for trading and market making on-chain. This whitepaper describes Carbon’s key features in detail.
