AMM DEX Connectors

Automated Market Maker DEX connectors for DeFi liquidity pools and DEX aggregators

AMM DEX connectors enable interaction with Automated Market Maker protocols through the Hummingbot Gateway middleware. These connectors provide access to decentralized liquidity pools, DEX aggregators, and concentrated liquidity protocols across multiple blockchain networks.

How AMM DEX Connectors Work

AMM DEX connectors operate through the Gateway middleware, which provides standardized interfaces to different DeFi protocols:

Gateway Middleware

TypeScript-based API layer that translates Hummingbot commands to protocol-specific calls

Liquidity Pools

Trade against algorithmic liquidity pools instead of order books

Multi-Chain Support

Connect to AMMs across Ethereum, Polygon, Avalanche, Solana, and more

Smart Routing

DEX aggregators automatically find optimal swap paths across multiple pools

AMM Sub-Types

Router (DEX Aggregators)

Smart routing protocols that find optimal trade paths:

How they work:

• Split trades across multiple DEXs and pools
• Optimize for best price execution
• Minimize slippage and price impact
• Compare routes in real-time

Examples: 0x Protocol, Jupiter, Uniswap Auto Router

Best for: Large trades, best price execution, multi-pool arbitrage

AMM (Constant Product)

Traditional automated market makers using x*y=k formula:

How they work:

• Liquidity providers deposit equal value of two tokens
• Price determined by ratio in pool
• Trades directly impact price (slippage)
• Earn fees from swaps (typically 0.3%)

Examples: Uniswap V2, SushiSwap, PancakeSwap

Best for: Standard swaps, liquidity provision, simple arbitrage

CLMM (Concentrated Liquidity)

Advanced AMMs with customizable price ranges:

How they work:

• Liquidity providers set custom price ranges
• Higher capital efficiency than traditional AMMs
• Multiple fee tiers (0.01%, 0.05%, 0.3%, 1%)
• Active liquidity management required

Examples: Uniswap V3, Raydium CLMM, Meteora

Best for: Advanced liquidity provision, concentrated market making

Installing Gateway

Gateway is required for all AMM DEX connectors:

1. Install Gateway during setup

   When setting up Hummingbot, answer y when prompted:

   make setup
   # Answer 'y' when prompted:
   Include Gateway? [y/N] y
   
2. Configure Gateway certificates

   For production use with HTTPS:

   # In Hummingbot
   gateway generate-certs
   

   Gateway runs in development mode (HTTP) by default. Use DEV=false for production HTTPS mode.

3. Connect wallet to Gateway

   Configure your wallet for the desired blockchain:

   gateway connect [chain]
   

   Enter your private key when prompted.

4. Test Gateway connection

   Verify Gateway is running:

   gateway status
   

Gateway requires your wallet private key to sign transactions. Use a dedicated trading wallet, never your primary holdings wallet.

Router (DEX Aggregator) Connectors

DEX aggregators find optimal swap routes across multiple AMMs:

0x Protocol

Connector ID: 0x

Professional-grade DEX aggregator across EVM chains.

Features:

• Aggregates 100+ DEXs on supported chains
• Smart order routing (SOR)
• RFQ (Request for Quote) from market makers
• Multi-chain support (Ethereum, Polygon, BSC, Arbitrum, etc.)

Networks: Ethereum, Polygon, BSC, Arbitrum, Optimism, Avalanche

Exchange Documentation

Jupiter

Connector ID: jupiter

Leading DEX aggregator on Solana.

Features:

• Aggregates all major Solana DEXs
• Advanced routing algorithms
• Extremely low fees
• High-speed execution
• Limit orders via Jupiter

Network: Solana

Exchange Documentation

Uniswap Router

Connector ID: uniswap (auto-routing mode)

Uniswap’s smart order router.

Features:

• Routes across V2 and V3 pools
• Multi-hop optimization
• Gas-optimized routing
• Best price execution

Networks: Ethereum, Polygon, Arbitrum, Optimism, Base

Exchange Documentation

AMM (Constant Product) Connectors

Traditional AMMs using constant product (x*y=k) formula:

Balancer

Connector ID: balancer

Multi-token pools with customizable weights.

Networks: Ethereum, Polygon, Arbitrum

Docs

Curve

Connector ID: curve

Stablecoin-optimized AMM with low slippage.

Networks: Ethereum, Polygon, Arbitrum, Optimism

Docs

PancakeSwap

Connector ID: pancakeswap

Leading AMM on BNB Chain.

Networks: BSC, Ethereum

Docs

QuickSwap

Connector ID: quickswap

Polygon’s primary AMM.

Networks: Polygon, Polygon zkEVM

Docs

Raydium

Connector ID: raydium (AMM mode)

Solana’s leading AMM and liquidity provider.

Network: Solana

Docs

SushiSwap

Connector ID: sushiswap

Multi-chain AMM fork of Uniswap V2.

Networks: Ethereum, Polygon, Arbitrum, Avalanche

Docs

Trader Joe

Connector ID: traderjoe

Avalanche’s native AMM.

Network: Avalanche

Docs

Uniswap V2

Connector ID: uniswap (V2 mode)

Original constant product AMM.

Networks: Ethereum and forks

Docs

CLMM (Concentrated Liquidity) Connectors

Advanced AMMs with custom price range liquidity:

Meteora

Connector ID: meteora

Dynamic liquidity pools on Solana.

Features:

• Dynamic fee tiers
• Concentrated liquidity
• Multi-token pools
• High capital efficiency

Network: Solana

Exchange Documentation

Raydium CLMM

Connector ID: raydium (CLMM mode)

Concentrated liquidity on Solana.

Features:

• Custom price ranges
• Multiple fee tiers
• Integrated with Raydium AMM
• High yields for LPs

Network: Solana

Exchange Documentation

Uniswap V3

Connector ID: uniswap (V3 mode)

Industry-leading concentrated liquidity protocol.

Features:

• Custom price ranges
• Multiple fee tiers (0.01%, 0.05%, 0.3%, 1%)
• NFT position tokens
• Superior capital efficiency

Networks: Ethereum, Polygon, Arbitrum, Optimism, Base

Exchange Documentation

Supported Features by Sub-Type

Feature	Router	AMM	CLMM
Token swaps	Yes	Yes	Yes
Liquidity provision	No	Yes	Yes
Custom price ranges	No	No	Yes
Multi-hop routing	Yes	Limited	Limited
Fee tiers	N/A	Fixed	Multiple
Price impact	Minimized	Higher	Lower
Gas optimization	Yes	Standard	Standard

Trading on AMM DEXs

Understanding Slippage

AMMs experience price impact from trades:

Slippage Factors

• Pool liquidity depth
• Trade size relative to pool
• Price volatility
• Network congestion (gas prices)

Larger trades = higher slippage

calculate_slippage.py

# Example: Price impact calculation
pool_liquidity = 1000000  # $1M pool
trade_size = 50000  # $50k trade

# Simplified price impact
impact_percentage = (trade_size / pool_liquidity) * 100
print(f"Estimated price impact: {impact_percentage}%")  # ~5%

# Actual impact depends on AMM curve

Minimizing Slippage

1. Use DEX aggregators for large trades
2. Split large orders across multiple transactions
3. Trade during high liquidity periods
4. Choose pools with deeper liquidity
5. Use CLMM pools for better execution

Gas Fees on AMM DEXs

Gas costs vary significantly by network:

Network	Typical Swap Cost	Liquidity Add/Remove
Ethereum	$5-50	$20-100
Polygon	$0.01-0.10	$0.05-0.30
Arbitrum	$0.10-1.00	$0.50-3.00
Optimism	$0.10-1.00	$0.50-3.00
BSC	$0.10-0.50	$0.30-1.50
Avalanche	$0.50-2.00	$1.00-5.00
Solana	$0.0001-0.001	$0.001-0.01

Gas costs fluctuate with network congestion. Monitor gas prices before executing large trades.

Liquidity Provision

AMM and CLMM connectors support liquidity provision:

Traditional AMM

Provide liquidity to constant product pools:

Process:

1. Deposit equal value of both tokens
2. Receive LP tokens representing your share
3. Earn fees from all swaps (pro-rata)
4. Withdraw anytime by burning LP tokens

Risks:

• Impermanent loss from price divergence
• Smart contract risk
• Concentration risk in single pool

Concentrated Liquidity

Provide liquidity within custom price ranges:

Process:

1. Choose price range for your liquidity
2. Deposit tokens (ratio depends on range)
3. Earn fees when price is in range
4. Rebalance as price moves

Advantages:

• Higher capital efficiency (up to 4000x)
• Earn more fees per dollar
• Customizable risk/return profile

Challenges:

• Requires active management
• Higher impermanent loss if price exits range
• More complex than traditional AMM

Configuration Example

Example Gateway configuration for AMM connector:

connector: uniswap
chain: ethereum
network: mainnet
market: WETH-USDC
amount: 1.0
slippage: 1.0  # 1% max slippage

Multi-Chain Support

AMM connectors support multiple blockchain networks:

Ethereum

Mainnet and testnets

Highest liquidity, highest gas

Polygon

Low-cost EVM sidechain

Fast and cheap transactions

Arbitrum

Optimistic rollup L2

Lower fees, Ethereum security

Optimism

Optimistic rollup L2

Growing ecosystem

BSC

Binance Smart Chain

Large user base

Avalanche

High-performance L1

Fast finality

Solana

High-speed L1

Ultra-low fees

Base

Coinbase L2

Growing adoption

Next Steps

Gateway Installation

Install and configure Gateway middleware

CLOB DEX

Explore order book DEX connectors

Liquidity Strategies

Learn liquidity provision strategies

Multi-Chain Trading

Cross-chain arbitrage opportunities