Intro

Documentation Index

Fetch the complete documentation index at: https://docs.hyfi.finance/llms.txt

Use this file to discover all available pages before exploring further.

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Two fundamental truths:

• Most LPs lose money because of toxic flow. Toxic flow exists because AMMs aren’t aware of CEX prices.
• Users only care about the best prices.

HyFi — short for Hybrid Finance — is a proprietary-AMM (propAMM) platform built on top of Uniswap v4. The name reflects what it is: a hybrid exchange (not a classic CEX or AMM DEX) that bridges centralised-exchange pricing/liquidity with on-chain settlement, so professional market-makers can quote on-chain liquidity using off-chain prices, and the rest of the EVM ecosystem (aggregators, wallets, swap UIs) can tap into that liquidity through a single, standard interface. Crucially, everything lives on-chain — price updates and MM token inventory included — HyFi is not an off-chain RFQ system bolted onto a DEX. Because HyFi prices each trade against the live off-chain market instead of a stale x * y = k curve, it fundamentally solves impermanent loss and toxic flow (LVR) at the root cause: there is no stale price for arbitrageurs to pick off. LP losses are eliminated by construction, not patched after the fact.

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What is a propAMM?

A proprietary AMM is an AMM where a single, sophisticated operator (typically a professional market-maker) provides the liquidity and controls the pricing logic — rather than a passive curve like x * y = k. The risk of LPing/MMing on HyFi is greatly reduced compared to passive AMMs by:

• eliminating impermanent loss
• eliminating loss to toxic flow
• allowing MMs to use custom code that reflects the strategy they use on CEXes, or a custom price curve around the CEX price
• the strategy in the code can be aware of arbitrary things like their own token inventory

These reductions in risk translate to MMs being able to offer better pricing, tighter spreads, and lower slippage. They are fundamentally more capital-efficient than passive curves. Solana’s DEX volume is now dominated by propAMMs for this reason. EVM chains are heading the same direction, just more slowly because passive AMM liquidity is more entrenched and the cost of constantly updating prices for only yourself as a single MM is prohibitively expensive.

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What is HyFi?

HyFi is a Uniswap V4 hook and the platform that makes propAMM market-making viable on EVM: it pools infrastructure too expensive for any one MM to run alone and exposes the result as a single venue. For market-makers:

• Lower cost to operate — a shared pricing oracle pushes fresh prices on-chain every few seconds, so no MM has to fund their own update stream.
• Trading flow out of the box — as a Uniswap v4 hook, HyFi is reachable from every router that integrates it. Joining HyFi = reaching every aggregator on day one, now and in the future.
• Custom strategies, on-chain — each MM ships their own Quoter, so they can mirror their CEX logic, shape a curve around the CEX price, react to inventory, etc.
• Reduced risk — as mentioned above.

For traders and aggregators:

• CEX-grade pricing on-chain — swaps are priced against live CEX prices and order-book depth, so spreads and slippage track real CEX liquidity, not thin on-chain pools.
• One integration, many MMs — integrate HyFi once, reach every MM on the platform, now and as new ones join.
• No new trust assumption — settlement runs through Uniswap v4’s PoolManager with the caller’s minimum-output check; if the price isn’t good enough, the swap reverts.

The result is one place to plug in, one place to route to, and a network effect that benefits everyone on the platform.