RMM Liquidity
Reserve funding, inventory paths and LP exposure.
#Liquidity-provider role
An RMM liquidity provider funds the reserves from which the target payoff is formed. LP shares are claims on evolving inventory, not passive deposits.
#Liquidity dimensions
| Dimension | Effect |
|---|---|
| Reserve depth | Controls size and price impact |
| Inventory path | Determines assets held as state changes |
| Fee level | Balances compensation against alignment friction |
| Concentration | Improves local depth while increasing boundary risk |
| Entry and exit | Can transfer value between LP cohorts if mispriced |
| Expiry | Requires treatment of residual reserves and claims |
#Separate user and LP exposure
The end-user covered-call payoff and the LP inventory payoff are different claims. Fees, replication error and loss modes must be measured separately.
- Primitive rmms-py
Open-source Python simulation toolkit for covered-call RMM behavior, arbitrage and fee experiments.
- Primitive Portfolio
Open-source automated market-making protocol repository and a useful part of the research lineage; it is not an ARRANGE dependency or deployment.