Valantis Documentation
Valantis Website
  • Welcome to Valantis
  • Sovereign Pool
    • The Modules
      • Pool Manager
      • Liquidity Module
      • Swap Fee Module
      • Verifier Module
      • Oracle Module
      • Sovereign Vault
        • Rebase token support
      • Gauge
    • Interacting with Pools
      • Swap Parameters
      • Swap Steps
      • Multi Token Support
      • Deposit Liquidity
      • Withdraw Liquidity
      • Flash Loans
  • Hybrid Order Type (HOT)
    • Understanding HOT: A Graphical Overview
    • HOT API
      • HTTP request parameters
      • HTTP request response
      • Reasoning for Request structure
      • Solver Integration
      • Market Maker integration
    • HOT Smart Contracts
      • Interfaces
      • State variables and roles
      • AMM
      • HOT Swap
      • AMM Swap
      • Hybrid Order Type (HOT) struct parameters
      • Alternating Nonce Bitmap
      • Deposits
      • Withdrawals
      • Deployment Assumptions
    • Liquidity Manager Docs
      • Reference Oracle
      • Deposit
      • Withdraw
      • Signature
    • Swap
      • Swap Context
      • AMM Swap
      • HOT Swap
      • HOT Quote Parameters
        • Bitmap Nonce Instructions
    • Solver Docs
      • Solver Request
      • Simple HOT Swap Example
      • Partial Fill HOT Swap Example
    • Risks and Trust Assumptions
      • Roles
        • Sovereign Pool Manager
        • HOT Manager
        • HOT Signer
        • Liquidity Provider
      • Threats
        • Deposit Sandwich
        • Malicious Price Bound
        • Malicious Signer
        • Mispriced HOT Quote
  • Validly
    • Understanding Validly
    • Swap
    • Deposits and Withdrawals
    • Deployments
  • Stake Exchange (stHYPE AMM)
    • Swap
      • Instant Withdrawals (LST -> Native Token)
      • New Stake (Native Token -> LST)
    • LP Positions
      • LP Withdrawals Instant
      • LP Withdrawal Queued
    • Ratio Fee
    • Lending of Reserves
    • Smart contracts
      • STEXAMM.sol
      • StHYPEWithdrawalModule.sol
      • StexRatioSwapFeeModule.sol
      • DepositWrapper.sol
      • AaveLendingModule.sol
    • Risks and Trust Assumptions
    • Integration examples
  • Deploy and Build
  • Resources
    • Audits
    • Links
    • Get HYPE on HyperEVM
Powered by GitBook
On this page
  • Step 1: Solvers Request a Quote.
  • Step 2: Liquidity Manager responds with a signed HOT quote bundled with an AMM state update.
  • Step 3: Solver sends the signed HOT quote to Valantis Pool.
  • Step 4: AMM spot price updated and spread significantly lowered.
  • Step 5: Permissionless AMM swaps happen at an updated price and lower spread for everyone else.

Was this helpful?

  1. Hybrid Order Type (HOT)

Understanding HOT: A Graphical Overview

PreviousHybrid Order Type (HOT)NextHOT API

Last updated 1 year ago

Was this helpful?

Hybrid Order Type (HOT) is a new type of liquidity pool built on the Valantis protocol. Designed by Arrakis Finance in collaboration with Valantis Labs, HOT-enabled pools have two execution modes: a permissionless AMM and an RfQ system based on signed HOT quotes. By applying a dynamic fee for traditional AMM swaps as well as adjusting the spot price on HOT quote fulfillment, this design provides robust guarantees of LVR reduction for LPs. This mechanism is illustrated in the following diagrams:

Step 1: Solvers Request a Quote.


Step 2: Liquidity Manager responds with a signed HOT quote bundled with an AMM state update.


Step 3: Solver sends the signed HOT quote to Valantis Pool.


Step 4: AMM spot price updated and spread significantly lowered.


Step 5: Permissionless AMM swaps happen at an updated price and lower spread for everyone else.