Virtual AMM (vAMM)
A virtual AMM uses the constant-product formula (x · y = k) to calculate prices — but unlike Uniswap, there are no real tokens in the pool. The vAMM is purely a pricing engine. Collateral sits in a separate vault. When traders open or close positions, the vAMM updates virtual reserves to determine the new mark price. Pioneered by Perpetual Protocol, this design is also the conceptual basis behind GMX's pricing model and dYdX v3.
🎯 vAMM Price Impact Simulator
Drag the trade size slider to see how trades move along the constant-product curve. Larger trades relative to virtual depth create more slippage.
📐 Depth Comparison: vAMM vs Order Book
See how the same trade executes differently on a vAMM (smooth curve) versus an order book (discrete price levels). The vAMM provides deterministic pricing — no need to match with counterparties.
🔑 vAMM vs Real AMM vs Order Book
- No real tokens in pool
- k set by governance
- Collateral in separate vault
- Can be re-pegged to index
- Deterministic pricing
- Real tokens deposited by LPs
- k = actual liquidity
- Tokens swapped in-pool
- Price = supply/demand
- LPs take IL risk
- Discrete bids & asks
- Depth from market makers
- Partial fills possible
- Tighter spreads at top
- Requires active LPs