Custom Liquidity Pool & AMM Development
Build the secure, high-performance DeFi engine your users deserve.
Go beyond forks with a differentiated, gas-optimized protocol.
In the fast-paced world of DeFi, a generic, forked protocol is a liability. It exposes you to inherited security risks and leaves you undifferentiated in a crowded market. We build custom Automated Market Makers (AMMs) and liquidity pools from the ground up, architected for maximum security, capital efficiency, and unique functionality that gives your project a decisive competitive advantage. Partner with us to create a DeFi platform that inspires trust and drives adoption.
Launch Your DeFi Protocol
Why Partner With Errna for AMM Development?
We deliver more than code. We deliver secure, scalable, and strategic DeFi solutions backed by decades of enterprise-level software engineering expertise.
Security-First Architecture
Our development lifecycle is rooted in security. We conduct multi-layered smart contract audits, formal verification, and adhere to CMMI Level 5 standards to build DeFi protocols that are resilient against exploits.
AI-Augmented Development
We leverage proprietary AI tools to enhance code quality, identify potential vulnerabilities, and optimize gas efficiency, delivering a superior and more secure final product faster than traditional development methods.
Bespoke Protocol Engineering
We don't rely on templates. Our experts design custom AMM logic, concentrated liquidity models, and dynamic fee structures tailored to your unique tokenomics and strategic goals, ensuring true product differentiation.
Relentless Gas Optimization
High transaction costs kill user adoption. We employ advanced Solidity patterns and assembly-level optimizations to ensure your protocol is highly gas-efficient, providing a competitive advantage and better user experience.
Capital Efficiency Focus
Our solutions, like concentrated liquidity and custom bonding curves, are designed to maximize capital efficiency. This allows your protocol to offer lower slippage and higher returns for liquidity providers with less required capital.
End-to-End Partnership
From initial tokenomics design and strategic consulting to post-launch support and upgrades, we act as your long-term technology partner, ensuring your protocol's sustained success and evolution.
Enterprise-Grade Reliability
With a 20+ year history in software development and certifications like ISO 27001 and SOC 2, we bring a level of process maturity and reliability to the DeFi space that start-up agencies cannot match.
Full IP Ownership
Unlike some development partners, we ensure a complete and transparent transfer of all intellectual property upon project completion. Your custom protocol, smart contracts, and all associated code are 100% yours.
Global Delivery & Support
Our global team of over 1000 experts ensures seamless communication and 24/7 support, regardless of your time zone. We provide dedicated project managers to guarantee your project stays on track and on budget.
Our Liquidity Pool & AMM Development Services
We offer a comprehensive suite of services to design, build, secure, and launch your custom decentralized finance protocol.
Custom AMM Protocol Development
We architect and build unique AMM protocols from scratch, moving beyond standard x*y=k models to create sophisticated systems that provide a competitive edge. Our process involves deep collaboration to define custom bonding curves, multi-asset pools, and innovative features that align perfectly with your project's vision.
- Develop novel trading algorithms for specific asset types like stablecoins or exotic derivatives.
- Implement unique features such as TWAP oracles, flash loan resistance, and MEV protection.
- Ensure your protocol is fully modular and upgradeable to adapt to future market demands.
Liquidity Pool Smart Contracts
The core of any AMM is its liquidity pool contract. We develop highly secure and optimized smart contracts that manage token deposits, withdrawals, and swaps. Our contracts are built to be robust, reliable, and resistant to common attack vectors, ensuring the safety of user funds.
- Engineer contracts for single-asset, multi-asset, and weighted liquidity pools.
- Integrate flexible staking and reward distribution mechanisms directly into the pool contract.
- Build in administrative functions for pool management and parameter adjustments via governance.
Concentrated Liquidity Solutions
Dramatically improve capital efficiency with concentrated liquidity models inspired by Uniswap v3. We enable liquidity providers to allocate their capital within specific price ranges, resulting in deeper liquidity for active trading pairs, reduced slippage for traders, and higher fee generation for LPs.
- Design and implement non-fungible liquidity positions represented as NFTs.
- Develop complex logic for tracking fees and liquidity across multiple price ticks.
- Create intuitive front-end interfaces for users to manage their concentrated liquidity positions.
Dynamic & Algorithmic Fee Models
Move beyond static trading fees. We implement advanced fee structures that adapt to market conditions, such as volatility, trading volume, or oracle-fed data. This creates a more sustainable economic model that better compensates liquidity providers for risk and optimizes revenue for the protocol.
- Implement tiered fee systems based on asset type or trade size.
- Develop volatility-indexed fees that increase during market turbulence to protect LPs.
- Integrate governance control to allow the community to vote on fee structure changes.
Impermanent Loss Mitigation Strategies
Impermanent Loss (IL) is a major deterrent for liquidity providers. We design and integrate innovative mechanisms to reduce its impact, such as dynamic fees, single-sided staking options, and protocol-owned insurance funds. This builds confidence and attracts more stable, long-term liquidity to your platform.
- Implement custom solutions like Bancor's IL protection or design novel approaches.
- Develop analytics tools for LPs to track and understand their potential impermanent loss.
- Integrate with third-party DeFi insurance protocols to offer users additional protection.
Yield Farming & Staking Platform Integration
Incentivize liquidity provision by integrating robust yield farming and staking modules. We build secure smart contracts that allow users to stake their LP tokens to earn your protocol's native governance token or other rewards, creating a powerful flywheel effect for user acquisition and liquidity growth.
- Develop flexible reward contracts with configurable emission schedules and multipliers.
- Build intuitive user interfaces for staking, claiming rewards, and tracking APY.
- Ensure contracts are optimized for gas efficiency, especially for frequent actions like compounding.
Cross-Chain AMM & Bridge Development
Capture value from the entire Web3 ecosystem, not just a single chain. We build cross-chain AMMs that can tap into liquidity across multiple blockchains like Ethereum, Solana, and Polygon. This involves developing secure bridging technology and state synchronization mechanisms to enable seamless multi-chain swaps.
- Integrate with leading interoperability protocols like LayerZero or Axelar.
- Develop custom, lightweight bridges for specific use cases to optimize for speed and cost.
- Create a unified front-end experience where users can trade assets across chains in a single transaction.
AMM Analytics & Dashboards
Provide users and stakeholders with transparent, real-time data. We develop comprehensive analytics dashboards that display key metrics such as total value locked (TVL), trading volume, pool liquidity, fee revenue, and APYs. This transparency is crucial for building trust and attracting sophisticated users.
- Integrate with indexing protocols like The Graph for efficient data querying.
- Create historical data visualizations to track protocol growth and performance over time.
- Develop portfolio management tools for LPs to track the performance of their positions.
Front-End (dApp) Integration
A powerful back-end needs an intuitive and responsive front-end. Our UI/UX experts design and build user-friendly decentralized applications (dApps) that connect seamlessly with your AMM smart contracts. We focus on creating a smooth, informative, and secure user experience for traders and liquidity providers.
- Develop dApps using modern frameworks like React, Vue, or Svelte with libraries like Ethers.js or Web3.js.
- Ensure seamless integration with popular Web3 wallets like MetaMask, WalletConnect, and Coinbase Wallet.
- Prioritize a mobile-first, responsive design for accessibility across all devices.
Smart Contract Security Audits
Security is non-negotiable. Our comprehensive audit service goes beyond automated tools. Our security engineers perform a deep, manual review of your smart contracts to identify vulnerabilities, logical errors, and potential attack vectors. We provide a detailed report with actionable recommendations to fortify your protocol before launch.
- Conduct rigorous testing against known vulnerabilities like re-entrancy, integer overflows, and oracle manipulation.
- Perform economic modeling to identify and mitigate potential economic exploits.
- Collaborate with top-tier third-party audit firms for an additional layer of verification.
Gas Optimization Services
In a competitive blockchain environment, every bit of gas saved matters. Our developers are experts in gas optimization techniques, from efficient data packing and minimizing state changes to using advanced assembly patterns. We ensure your contracts are as lean and cost-effective as possible, reducing friction for your users.
- Refactor existing code to significantly reduce transaction costs.
- Utilize cutting-edge development tools like Foundry for detailed gas profiling and testing.
- Provide strategic advice on Layer 2 scaling solutions to further reduce costs for your users.
Tokenomics Design & Consulting
The long-term success of your protocol depends on well-designed tokenomics. Our team of DeFi strategists and economists helps you design a sustainable economic model for your token, including supply distribution, utility, value accrual mechanisms, and governance rights, ensuring it incentivizes positive participation.
- Model token emissions, staking rewards, and fee-sharing to create a balanced ecosystem.
- Design mechanisms to drive demand and utility for your native token.
- Create a clear and compelling tokenomics paper to communicate your vision to the community.
Oracle Integration Services
Many advanced AMM features rely on secure and reliable external data. We specialize in integrating decentralized oracles like Chainlink to bring real-world data, such as asset prices or volatility metrics, on-chain. This enables features like dynamic fees, impermanent loss protection, and trading of synthetic assets.
- Implement robust oracle solutions that are resistant to manipulation and downtime.
- Develop custom oracle contracts for unique data requirements.
- Build fail-safes and circuit breakers to protect the protocol in case of oracle failure.
Protocol Governance (DAO)
Empower your community and decentralize control by implementing a robust governance system. We build the full suite of smart contracts for a Decentralized Autonomous Organization (DAO), including token-based voting, proposal submission, and on-chain execution of successful proposals, ensuring a truly community-owned protocol.
- Develop contracts for delegating voting power and creating governance proposals.
- Implement timelock contracts to ensure a delay between proposal approval and execution.
- Build a user-friendly governance portal for community members to participate in decision-making.
Post-Launch Maintenance & Upgrades
Our partnership doesn't end at launch. The DeFi landscape evolves rapidly, and your protocol needs to adapt. We provide ongoing maintenance, security monitoring, and support for future upgrades. We ensure your protocol remains secure, competitive, and aligned with your long-term roadmap through structured, governance-approved updates.
- Offer retainer-based support for continuous security monitoring and incident response.
- Manage the technical implementation of upgrade proposals passed by your DAO.
- Provide strategic advice on new features and market trends to keep your protocol competitive.
Our AMM Development Process
A proven, transparent, and collaborative methodology designed to deliver secure and successful DeFi protocols on time and on budget.
1. Discovery & Strategy
We begin with an in-depth workshop to understand your vision, target users, and competitive landscape. We define the core mechanics, tokenomics, and strategic goals that will guide the entire project.
2. Architecture & Design
Our solution architects design the smart contract system, off-chain components, and technical infrastructure. We create detailed diagrams and specifications, focusing on security, scalability, and modularity.
3. Smart Contract Development
Following a test-driven development (TDD) approach, our certified blockchain engineers write clean, optimized, and well-documented Solidity code. We conduct continuous peer reviews to ensure quality from the first line.
4. Rigorous Testing & Audits
This is the most critical phase. We perform comprehensive internal testing, followed by engaging one or more top-tier third-party security firms for an exhaustive audit to identify and remediate any potential vulnerabilities.
5. dApp & UI/UX Development
Parallel to backend development, our front-end team builds the user-facing dApp. We focus on creating an intuitive, responsive, and seamless user experience that simplifies complex DeFi interactions.
6. Testnet & Mainnet Deployment
After successful audits, we deploy the protocol to a public testnet for final community testing and feedback. Once fully vetted, we manage the secure and carefully orchestrated deployment to the mainnet.
Real-World DeFi Success Stories
See how we've helped clients launch innovative and successful liquidity protocols that solve real market needs.
DeFi Startup: Concentrated Liquidity DEX for Exotic Assets
Industry: Decentralized Finance (DeFi)
Client Overview
A well-funded DeFi startup aimed to launch a decentralized exchange on Polygon, specifically designed for trading long-tail and exotic digital assets. Their vision was to create a highly capital-efficient market that could provide deep liquidity for assets typically suffering from high slippage on traditional AMMs.
The Problem
Standard AMMs spread liquidity thinly across an infinite price curve, which is inefficient for assets that trade within a predictable range. The client needed a custom protocol that implemented concentrated liquidity, allowing LPs to target specific price ranges, thereby maximizing fee generation and minimizing slippage for traders.
Key Challenges
- Architecting complex smart contracts for non-fungible liquidity positions.
- Ensuring extreme gas efficiency on the Polygon network.
- Developing an intuitive UI for managing complex liquidity ranges.
- Passing audits from two top-tier security firms with zero critical vulnerabilities.
"Errna didn't just write code; they were our strategic partners. Their expertise in both complex smart contract architecture and DeFi market mechanics was invaluable. They delivered a protocol that was more secure and efficient than we thought possible."
Our Solution
We engineered a complete concentrated liquidity AMM from the ground up, including:
- NFT-based liquidity positions (ERC-721) to represent unique provider ranges.
- A highly optimized tick-based system to track liquidity and calculate fees with minimal gas.
- A custom front-end dApp with interactive charts to help users visualize and select their liquidity ranges.
- A full suite of smart contracts that underwent rigorous internal testing and two successful external audits.
GameFi Platform: In-Game Asset AMM
Industry: Gaming (GameFi) & NFTs
Client Overview
A leading GameFi studio was developing a new play-to-earn (P2E) metaverse. They needed a seamless, in-game marketplace for players to trade thousands of different NFT-based items, from resources to unique collectibles, without leaving the game environment.
The Problem
External NFT marketplaces like OpenSea created a disjointed user experience and high gas fees. The client required a native, gas-efficient AMM that could handle thousands of individual liquidity pools (one for each item type) and provide instant, reliable pricing for in-game assets.
Key Challenges
- Designing a factory contract capable of deploying thousands of pools cheaply.
- Integrating the AMM with the game's L2 solution for near-zero gas fees.
- Creating a simple, game-like UI for swapping items.
- Ensuring the system was robust enough to handle high transaction volumes during peak gameplay.
"The in-game economy is the heart of our metaverse, and Errna built us a rock-solid, scalable heart. Their ability to integrate complex DeFi mechanics into a seamless gaming experience was a game-changer for us. Player engagement with the marketplace has been phenomenal."
Our Solution
We developed a specialized NFT AMM protocol tailored for the gaming environment:
- A highly efficient pool factory contract using the clone pattern to minimize deployment costs.
- Direct integration with the client's chosen Layer 2 network, enabling meta-transactions for a gasless user experience.
- A custom router contract that could find the most efficient path for multi-item swaps.
- A WebGL-compatible SDK that allowed the game developers to easily integrate the marketplace into the Unity game engine.
FinTech Firm: Permissioned Liquidity Pool for Institutional Clients
Industry: Financial Technology (FinTech) & Enterprise Blockchain
Client Overview
An established FinTech company providing asset management services wanted to offer their institutional clients a compliant way to gain yield on their digital asset holdings. They needed a private, permissioned liquidity pool that met strict KYC/AML requirements.
The Problem
Public DeFi pools were not an option due to regulatory uncertainty and lack of access controls. The client needed a "walled garden" DeFi solution that combined the efficiency of an AMM with the compliance and security features required by institutional finance.
Key Challenges
- Integrating a robust KYC/AML identity solution at the smart contract level.
- Building access control lists (ACLs) to whitelist participating institutions.
- Ensuring comprehensive audit trails and reporting capabilities for compliance.
- Developing a secure custody solution for managing institutional funds.
"Errna perfectly understood the bridge between traditional finance and DeFi. They delivered a platform that gave our clients the yield benefits of DeFi within a secure, compliant framework they could trust. Their professionalism and attention to regulatory detail were exceptional."
Our Solution
We built an enterprise-grade permissioned DeFi ecosystem:
- Smart contracts with built-in modifiers to check addresses against a KYC whitelist before allowing any interaction.
- An administrative layer for the client to manage the whitelist and set pool parameters.
- Integration with a leading digital identity provider for institutional KYC.
- An off-chain reporting engine that generated detailed transaction histories for regulatory and accounting purposes.
Technology Stack & Tools
We leverage a cutting-edge, battle-tested technology stack to build secure, scalable, and high-performance DeFi applications.
What Our Clients Say
Our success is measured by the success of our partners. Here's what they have to say about our work.
"The gas optimization work Errna did was incredible. They cut our average transaction costs by over 30%, which was a huge win for our users. Their deep understanding of the EVM is second to none."
"We came to Errna with a complex vision for a dynamic NFT AMM. They not only executed it flawlessly but also contributed brilliant ideas that significantly improved the final product. A true collaborative partner."
"Security was our number one concern. Errna's rigorous audit process and security-first development approach gave us the confidence we needed to launch. Their communication was transparent and professional throughout."
"Integrating a seamless AMM into our game was a massive technical challenge. Errna's team delivered an SDK that was easy for our game developers to work with and performed flawlessly on our L2 network."
"Errna helped us navigate the complexities of building a compliant, permissioned DeFi product for our institutional clients. Their expertise in both blockchain and traditional finance regulations was invaluable."
"I engaged Errna for a tokenomics consulting project. Their team provided deep, data-driven insights that helped us design a much more sustainable and robust economic model for our protocol. Highly recommended."
Frequently Asked Questions
Clear answers to common questions about our AMM and liquidity pool development services.
How much does it cost to develop a custom AMM?
The cost varies significantly based on complexity. A simple AMM might start around $50,000, while a highly complex protocol with features like concentrated liquidity, cross-chain capabilities, and a custom governance model can range from $150,000 to $500,000+. We provide a detailed, transparent quote after an initial discovery and strategy session.
How long does the development process take?
A typical timeline is 3 to 6 months. This includes strategy, design, development, rigorous testing, at least one third-party audit, and deployment. The exact duration depends on the complexity of the features and the number of required audits.
How do you ensure the security of the smart contracts?
Security is our top priority. Our multi-layered approach includes: 1) Adherence to industry best practices like the Checks-Effects-Interactions pattern. 2) A rigorous Test-Driven Development (TDD) methodology with 100% test coverage. 3) Extensive internal peer reviews and security checks. 4) Mandatory engagement with one or more reputable third-party audit firms before mainnet deployment.
Can you build on blockchains other than Ethereum?
Absolutely. We are a blockchain-agnostic development company. We have extensive experience building on various EVM-compatible chains (like Polygon, Avalanche, BNB Chain), Layer 2 solutions (like Arbitrum, Optimism), and non-EVM chains such as Solana and Cosmos.
Do you provide support after the protocol is launched?
Yes, we offer ongoing maintenance and support packages. This can include security monitoring, incident response, and managing the technical implementation of future upgrades approved by your protocol's governance. We believe in long-term partnerships to ensure the continued success and security of your project.
Ready to Build the Future of Decentralized Finance?
Your innovative DeFi protocol deserves an engineering partner that matches your ambition. Let's discuss how our expertise in custom AMM and liquidity pool development can bring your vision to life, securely and at scale.