A high-level technical introduction to the Exponent CLMM
The Exponent CLMM is a concentrated liquidity AMM for trading PT and SY. LPs deposit into specific APY ranges rather than price ranges — the tighter the range, the more capital-efficient the position.
The pool holds PT and SY. PT trades at a discount determined by the implied APY pricing formula — as maturity approaches, PT price converges to 1 (redeemable at par).Ticks are keyed by APY scaled by 10^6, not price levels. A tick key of 80000 means 8% APY. LPs choose a tick range to concentrate their liquidity in, and swaps route through active liquidity at the current tick. See Core Concepts for the tick formula.YT doesn’t exist directly in the pool — buying or selling YT requires flash swaps that temporarily borrow tokens from the pool, strip or merge through the Core vault, and repay within the same transaction. For example, buying YT flash-borrows SY, strips it into PT + YT, sells the PT back through the CLMM, and uses the proceeds to repay the borrow. The wrapper instructions (ixWrapperBuyYt, ixWrapperSellYt) handle this in a single transaction.
The CLMM uses a time-weighted fee decay model — fees decrease as maturity approaches. The protocol takes a cut of swap fees defined by treasury_fee_bps (in basis points), and the rest accrues to LPs.
MarketThree — Loads market state and provides all trading, liquidity, and read operations. Includes wrapper methods for buying/selling PT and YT, providing and withdrawing liquidity, and querying positions and fees.
