Lifinity

Lifinity is a proactive market maker DEX on Solana that uses oracle-driven pricing rather than the traditional constant-product AMM formula. This unique approach significantly reduces impermanent loss for liquidity providers while maintaining competitive swap pricing for traders. Unlike standard AMMs where the price is determined by the ratio of tokens in the pool, Lifinity uses Pyth oracle price feeds to set the trading price. This means the pool always trades at or near the true market price, rather than relying on arbitrageurs to correct pricing. The result is that LPs experience dramatically less impermanent loss because the pool doesn't mispriced assets waiting for arbitrage correction. Lifinity's protocol-owned liquidity model means the protocol itself provides much of the trading liquidity, funded by protocol revenue. This creates a sustainable flywheel — trading fees fund liquidity, which enables more trading, generating more fees. LPs who provide additional liquidity earn trading fees with significantly reduced impermanent loss compared to standard AMMs. The LFNTY governance token and the veToken (veLFNTY) model give long-term holders enhanced governance power and fee-sharing benefits. Lifinity has attracted attention as one of the most technically innovative DEXs on Solana, though its unique model means smaller pool sizes compared to traditional AMMs like Raydium or Orca.