# POE (PropAMM)

POE is a **Prop-AMM** that combines multivenue-driven pricing to deliver the most accurate and efficient swaps.

### What is a Prop AMM?

Proprietary AMMs are liquidity pools where the price is computed by aggregating multiple sources, rather than relying on reserve ratios alone. This approach is highly capital efficient: overcoming traditional liquidity pools impermanent loss and MEV extraction.

**POE's approach:** Vaults provide liquidity, while POE handles pricing quotes. This separation enables capital-efficient swaps with deep liquidity.

### How POE Works

<figure><img src="https://537482928-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FgIE8OYZOtAU6RxUiPVcU%2Fuploads%2FttJIZeLTMQrgrAGxwCnj%2FCleanShot%202026-03-02%20at%2009.40.40%402x.png?alt=media&#x26;token=810c612c-fd71-410f-9ed1-ff8149de9d3b" alt=""><figcaption></figcaption></figure>

POE is built on **OraclePool** — a smart contract implementing the **Concentrated Liquidity Constant Product (CLCP)** model.

#### The Two-Layer System

| Layer         | Who                            | Role                                                |
| ------------- | ------------------------------ | --------------------------------------------------- |
| **Pricing**   | Market Maker (Oracle Operator) | Sets reference price, concentration range, and fees |
| **Liquidity** | Community (Anyone)             | Deposits tokens, earns swap fees                    |

#### Price Calculation

The execution price comes from both components:

1. **Oracle data** — The operator sets a center price (P) and concentration factor (α), defining the price range **\[P/α, P×α]**
2. **Pool reserves** — Determine the exact price within that range based on supply/demand

This hybrid model keeps prices tight to market while maintaining permissionless trading.

### Why POE?

* **No traditional impermanent loss** — Algorithm-driven pricing protects liquidity providers
* **No MEV leakage** — Prices update faster than arbitrageurs can extract value
* **Fast price updates** — Price feeds are updated and aligned with external markets

### Key Features

#### Best Execution Price

Algorithm-driven pricing keeps execution prices tightly aligned with external markets, delivering better rates than traditional AMMs.

#### High Throughput

Designed for volume. The gas-efficient oracle update mechanism supports high-frequency price adjustments without excessive costs.

#### Easy Integration

Callback-based swap interface enables straightforward aggregator integration and composability with other DeFi protocols.

### Network

POE is deployed on **Monad**, a high-performance EVM-compatible blockchain where the gas economics make frequent oracle updates viable.

### Getting Started as a Developer

Explore the documentation to learn how to integrate with POE:

* [**Tracking Price**](https://developers.lfj.gg/poe/tracking-price) - Understand the CLCP pricing model and read current prices
* [**Tracking Liquidity**](https://developers.lfj.gg/poe/tracking-liquidity) - Monitor reserves, balances, and liquidity changes
* [**Making a Swap** **with POE**](https://developers.lfj.gg/poe/making-a-swap-with-poe) - Execute swaps and implement the callback interface
* [**POE Contracts**](https://developers.lfj.gg/poe/poe-contracts)