Degen

🏪🏦EulerSwap (connected to Euler Finance) will use a rather revolutionary AMM system using:  

1) Swap functions. 

2) Lending platform. 

3) Leverage.  

By integrating Uniswap V4, LP on EulerSwap are put on lending, act as collateral for borrowing and to facilitate trades. The funds provided to LP are directly deposited into Euler’s vaults, so the capital generates loans and always remains usable.

This is called Just-In-Time (JIT) liquidity: if an LP does not have enough of the output token, it can borrow it using the input token as collateral, multiplying the depth of liquidity up to about 50× compared to a traditional AMM.  Symmetric/asymmetric and concentrated AMM curves that change dynamically can be used.

Additionally, a single asset (e.g. USDC) can be used in multiple pools, turning lending vaults into shared liquidity hubs. Through borrowing, LP limit impermanent loss, employing delta-neutral strategies.  If there is an asset in the LP that is falling in price a lot, they may even borrow more than the amount of numéraire and deploy a bearish LP position by borrowing 200% of the deposit (and selling a part of it to lock it at 50:50 ratio). Blue region (photo) represents the profitable price ranges.

You should definitely not underestimate EulerSwap because it is conceptually evolving the concept of AMM.