> For the complete documentation index, see [llms.txt](https://capricorn-docs.gitbook.io/capricorn-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://capricorn-docs.gitbook.io/capricorn-docs/capricorn-exchange/overview.md).

# Overview

At Capricorn Exchange, we aim to bring users the best onchain swap experience through hyper-capital efficient liquidity.

#### Proactive AMM (PAMM) Pools  <a href="#proactive-amm-pamm-pools" id="proactive-amm-pamm-pools"></a>

Capricorn Exchange’s flagship liquidity pool has a pricing engine that actively refreshes spreads and depths every block using up-to-the-moment oracle feeds, thus making it “proactive”. Compared to constant product or concentrated liquidity AMM pools, Proactive AMM pools uses a dynamic pricing curve that relies on the world fair price rather than the pool’s balance of assets as the key mechanism to price assets. Brief architecture overview:

* **Pool contract**: open‑source and immutable (no proxy). Maintains reserves and enforces accounting/slippage, while delegating quote computation. Calls into the pricing engine below to get real-time oracle-adjusted pricing.
* **Pricing engine**: proprietary, closed‑source on‑chain module referenced by the pool to compute amounts using oracle data. The engine address can be rotated by admin subject to a version guard.

#### Concentrated Pools (Capricorn CL) <a href="#concentrated-pools-capricorn-cl" id="concentrated-pools-capricorn-cl"></a>

PAMM pools are best suited for major trading pairs where there is a world fair price. In order to support the longer-tail pairs where price discovery happens onchain, Capricorn Exchange has concentrated pools that are conceptually similar to Uniswap V3 pools.