This describes a pre-release version of LBAMM. Interfaces and behavior may change.
Verify the exact repository commit before building production integrations.
What is LBAMM?
The Limit Break AMM (LBAMM) is a modular AMM framework designed for Apptokens that supports multiple pool types and liquidity models, while allowing token, pool, and position behavior to be extended or constrained through programmable hooks.
At its core, LBAMM separates liquidity mechanics from token- and application-level rules. Rather than embedding assumptions about token behavior directly into a single AMM design, LBAMM provides a common execution layer where rules can be attached explicitly and enforced consistently.
This makes it possible to build DEX infrastructure that:
- Enforces token-level constraints across venues and routes
- Executes trades with a reliable, non-spoofable execution context
- Exposes simple, composable interfaces for integrators and hook authors
Why LBAMM exists
Traditional AMMs assume that tokens are passive ERC‑20 balances and that all policy lives outside the pool. In practice, this creates gaps:
- Token-level rules can often be bypassed by routing through unexpected venues or liquidity sources
- Execution context (who is executing the trade, who receives outputs, and how the route is constructed) is difficult or impossible to reason about reliably
- Extending behavior requires forking pool logic rather than composing reusable constraints
LBAMM addresses these problems by making execution context explicit and giving token/pool/position policy a first-class enforcement surface.
Instead of asking every pool or integrator to re‑implement the same checks, LBAMM provides a shared framework where:
- Token behavior can be enforced wherever liquidity exists
- Pools focus on pricing and liquidity mechanics
- Hooks define when and how behavior is constrained or extended
Apptokens and ERC‑20 compatibility
LBAMM is designed to work with any ERC‑20 token, not just Apptokens.
Apptokens are a specialized class of ERC‑20s that are built to take full advantage of LBAMM’s execution guarantees and hook system. However:
- Non‑Apptoken ERC‑20s can be traded, pooled, and routed through LBAMM
- Pools and hooks do not require tokens to be Apptokens to function
Apptokens are not a requirement to use LBAMM — they are simply the tokens that can express the richest behavior within it.
Control, mutability, and issuer intent
A common misconception is that LBAMM gives token issuers permanent or unilateral control.
In reality, LBAMM supports a spectrum of control models, defined at deployment time:
- Issuers may deploy hooks that are fully immutable
- Issuers may delegate control or governance to other parties
- Issuers may time‑limit or scope enforcement to specific pools or positions
The framework does not mandate who controls behavior or for how long — it only ensures that whatever rules exist are enforced consistently.
Who this documentation is for
This documentation is written for three primary audiences:
- Token issuers building Apptokens or attaching policies to existing ERC‑20s
- DEX integrators and aggregators integrating LBAMM pools, routes, and execution flows
- Hook authors implementing custom token, pool, or position behavior
Each section of the docs is structured so that readers can go as deep as necessary, from high‑level mental models to low‑level integration details.
Next steps
If you are new to LBAMM, read these in order:
These pages establish the shared language and core execution model used throughout the rest of the docs.