A concentrated liquidity AMM that converts speculative trading into long-term value through programmatic market making and floor price mechanisms.
Protocol Architecture
Floor Liquidity
Protocol-owned floor liquidity creates hard price floors.
JIT Liquidity
Captures value from directional trades through autonomous market making.
GTWAP Pricing
Geometric time-weighted average pricing for manipulation resistance.
Hub-and-Spoke Architecture
Unlike traditional AMMs, Feels Protocol requires all tokens to trade through a central hub: FeelsSOL. This design concentrates liquidity and simplifies routing.
Trade Examples
Direct Trade: Token A ↔ FeelsSOL
Simplified exchange between a token and the central routing token.
Cross Trade: Token A → FeelsSOL → Token B
Efficient routing for trades between any two tokens via the central hub.
Key Benefits
Liquidity Concentration
All liquidity for each token is centralized in one place through FeelsSOL.
Simplified Routing
Maximum of two hops for any trade, reducing complexity and gas fees.
Capital Efficiency
Liquidity Providers only need to manage one pool per token.
FeelsSOL: The Hub Token
What is FeelsSOL?
FeelsSOL is the innovative hub token designed to unify liquidity and simplify trading within the Feels Protocol. It wraps yield-bearing LSTs (initially JitoSOL), provides essential base liquidity for all trading pairs, and accrues staking rewards for its holders.
Crucially, all markets in the Feels Protocol are structured such that one side of every trading pair must be FeelsSOL. This unique architecture creates a highly concentrated and efficient liquidity environment.
Unified Trade Flows
Direct Trade: USDC → FeelsSOL
Experience seamless and efficient direct exchanges, requiring only a single transaction hop. This simplifies the process and reduces gas fees for users looking to trade directly with FeelsSOL.
Cross Trade: USDC → FeelsSOL → BONK
Facilitate trades between any two tokens with maximum efficiency, involving only two transaction hops through the central FeelsSOL hub. This ensures optimal routing and minimal slippage across diverse asset pairs.
Key Benefits & Features
Centralized Liquidity
All token liquidity is concentrated through FeelsSOL, creating deeper, more stable pools.
Yield-Bearing Asset
Holders earn staking rewards from wrapped LSTs, enhancing overall returns.
Efficient Routing
Any trade involves a maximum of two hops, ensuring optimal execution and lower costs.
Optimized Capital
Liquidity Providers manage fewer pools, improving capital deployment and flexibility.
Two-Layer Solvency Model
The Feels Protocol's two-layer architecture with isolated pools provides exceptionally strong solvency guarantees through natural fault isolation and conservation laws.
Pool-Level Solvency
A pool is solvent when it contains sufficient FeelsSOL liquidity to facilitate all reasonable exit scenarios for its tokens. Each pool maintains its own FeelsSOL escrow balance independent of other pools.
Protocol-Level Solvency
The protocol is solvent when its JitoSOL reserves can redeem all outstanding FeelsSOL tokens. Unified backing system for all FeelsSOL with solvency ratio improving over longer timeframes due to staking yield accumulation.
Floor Price Mechanism
The Feels Protocol implements a robust floor price mechanism, ensuring strong support for its token through a mathematically defined value and a monotonic ratcheting system.
Price Dynamics Over Time
This chart illustrates how the Floor Price (green) provides a steadily rising base, while the Spot Price (red) fluctuates above it, never falling below the guaranteed minimum.
Value Accrual Flywheel
Trading Activity
Users trade tokens, generating swap fees across all markets
Fee Collection
Portion of fees routed to protocol treasury and pool reserves
Staking Yield
JitoSOL reserves accrue staking rewards, increasing total asset value
Floor Ratchet
Increased reserves raise floor price, cementing permanent value
This architecture transforms every market into a self-improving system where trading activity directly strengthens the foundation. Speculative energy becomes permanent value.
Dynamic Fee Model
The fee model computes fees entirely on-chain after swap execution, using actual realized price impact. This approach treats fees as impedance that increases with displacement and flow persistence, bounded by caps to prevent runaway dynamics.
Base Fee
Standard fee applied to all trades (typically 30 bps)
Impact Component
Additional fee based on actual ticks moved during swap execution
Anti-Gaming Floor
Minimum impact fee prevents split-trade exploitation
User Fee Caps
Traders specify maximum fee willing to pay for transaction certainty
Fee Distribution
After fees are collected from trades, they are distributed among multiple protocol entities using a configurable split. This ensures each stakeholder is compensated appropriately for their role while maintaining incentive alignment.
LPs receive the largest share for providing capital and bearing impermanent loss risk. Pool Reserve builds strategic floor capital. Pool Buffer funds JIT strategy. Protocol Treasury sustains development. Pool Creator receives immediate base fee share.
Just-in-Time Liquidity
The JIT system provides automated, risk-aware market making for newly launched tokens. It acts as a contrarian liquidity provider that places narrow bands of liquidity opposite to incoming trades. This happens atomically in one transaction, preventing manipulation and ensuring fair execution.
Place Liquidity
Narrow bands of liquidity are instantly placed, optimized against predicted trade direction.
Execute Swap
The trade executes efficiently within the precisely placed liquidity bands.
Remove Liquidity
Liquidity is immediately withdrawn, preventing sandwiches, MEV, and stale quotes.
GTWAP Anchor
Pricing centered around manipulation-resistant geometric time-weighted average price
Toxicity Tracking
Directional toxicity detection reduces liquidity when price moves against fills
Budget Caps
Rolling budget caps and circuit breakers prevent draining attacks
JIT v0.5: Virtual Concentration
The MVP ships with JIT v0.5, featuring virtual concentrated liquidity that provides 5-10x revenue improvement through enhanced caps and concentration effects, without the complexity of full position management.
Peak Multiplier
Boost at current price tick
Base Cap
Of buffer per swap
Slot Cap
Of buffer per slot
Virtual concentration simulates concentrated liquidity without creating positions by scaling liquidity based on distance from current price. Multiple safety layers include graduated drain protection, slot-based concentration shifts, asymmetric directional caps, tick distance penalties, and circuit breaker mechanisms.
Oracle Architecture
The system separates oracle responsibilities by layer to match solvency responsibilities. The protocol oracle provides a conservative FeelsSOL↔JitoSOL exchange rate for global solvency checks. The pool oracle provides per-pool GTWAP used by pool subsystems.
Protocol Oracle
Conservative valuation using minimum of Jito native rate and filtered DEX TWAP with divergence guards
Pool Oracle (GTWAP)
Geometric time-weighted average price calculated over 60+ seconds for manipulation resistance
Safety Controller
Monitors oracle health and coordinates protective responses across subsystems
GTWAP: Manipulation Resistance
How It Works
The Geometric Time-Weighted Average Price (GTWAP) oracle calculates a geometric mean of the price by averaging the tick index over time. This is achieved by storing a cumulative tick value at discrete time intervals.
tick_cumulative = Σ (tick_i × time_delta_i)
By taking two observations, the average tick over that period can be calculated with a single subtraction and division. This makes GTWAP liveness maintenance-free for inactive pools: time continues to accrue at the last known tick and is realized lazily on read.
Security Features
- Flash loan resistant
- Minimum 60-second duration
- Timestamp-based weighting
- Lazy accumulation
- Ring buffer storage
Token Launch Sequence
Convert to FeelsSOL
Deposit JitoSOL to receive FeelsSOL 1:1
Mint Protocol Token
Create new SPL token with 1B supply to escrow
Initialize Market
Create trading market paired with FeelsSOL
Deploy Liquidity
Bootstrap market with discretized bonding curve
Graduate Pool
Transition to steady-state with floor and JIT
The launch sequence provides a smooth, predictable, and bot-resistant price discovery process. All third-party LPing is disabled during the bonding curve phase to ensure fair launch.
How the Bonding Curve Works
The Bonding Curve ensures a fair, predictable, and bot-resistant method for token price discovery and liquidity. Instead of traditional order books, it uses a pre-defined automated system to adjust prices and guarantee constant liquidity.
Predictable Price Path
The curve sets a clear, transparent path for the token's price, providing a stable foundation for early participants.
Automated Liquidity
It automatically provides liquidity, ensuring tokens can always be bought or sold without needing external market makers.
Fair Price Discovery
Designed to prevent manipulation, the curve allows for organic price discovery driven by demand, benefiting all users.
Pool Graduation Process
Seamless Transition
When the pool reaches its graduation cap, it transitions from bonding curve to steady-state with zero downtime. New steady-state liquidity is deployed before removing old bonding curve positions.
Capital recovered from the bonding phase is split: ~95% funds Floor POL (creating deep buy wall), ~5% seeds Pool Buffer for JIT operations.
Phase 1: Price Discovery
Bonding curve active, protocol-only liquidity, LPing disabled
Phase 2: Steady State
Floor + JIT liquidity, open to third-party LPs, permanent market structure
Safety and Risk Management
The Safety Controller manages risk on behalf of the protocol, monitoring the health of all critical components and coordinating protective responses across subsystems. Its primary purpose is to prevent cascading failures by detecting anomalies early and implementing graduated responses.
Health Monitoring
Tracks oracle health, liquidity conditions, and solvency metrics across all pools
Graduated Response
Implements gentle rate limiting during minor stress to full system pauses during critical events
Graceful Degradation
Ensures protocol remains usable even under adverse conditions while protecting user funds
Circuit Breakers
Automatic pauses when buffer health drops below threshold or extreme price movement detected
Unified Market Architecture
Every Feels asset has a unified token, primary market, protocol-owned balance sheet, and autonomous market-making system. Capital can flow dynamically between dimensions based on demand and market conditions.
Phase 1: Spot
Concentrated liquidity AMM with floor and JIT strategies
Phase 2: Lending
Borrow SOL against holdings, dynamic capacity allocation
Phase 3: Leverage
Peer-to-pool leveraged exposure with funding rates
This unified risk framework allows all three dimensions to share the same collateral base, with capital flowing where it's needed most to create natural equilibrium dynamics.
Launching New Markets with Feels
Each new market launches with spot and lending active, featuring three distinct vaults. These vaults hold a fixed amount of the coin and utilize linear tick pricing, ensuring early participants benefit from lower prices as supply is consumed.
Spot Vault
Users acquire a spot position token, redeemable at any time for the underlying coin. This vault provides liquidity to the JIT system for reactive liquidity during swaps, offering immediate exposure.
Duration Vaults
Three vaults (short, medium, long) with 7, 21, and 49-day lock terms respectively. Users deposit reserve assets for position tokens, redeemable at term end. Longer terms start at lower prices, reflecting time value.
Vault Mechanics
Each vault has a warmup period for initial price discovery, during which liquidity is fixed. After warmup, vaults reposition liquidity to their steady-state strategies, using historical data for duration vaults and integrating spot liquidity into the JIT system.
Combined Market Structure
This design creates a clear tradeoff: immediate access via the Spot Vault, or lower prices for short-term (Duration Vaults) or long-term commitments. All vaults are created at launch, initiating simultaneous price discovery and seeding the market with diverse liquidity from day one.
Initial Buy
The market creator can perform an initial buy during deployment. This fair launch mechanism allows the creator to enter first without altering the established vault pricing structure, ensuring transparency.
Key Benefits
Hard Price Floors
Mathematical guarantee that all tokens can be redeemed at floor price, rising monotonically with fee accumulation
Capital Efficiency
Concentrated liquidity and hub-and-spoke topology maximize capital utilization and minimize slippage
Unified Liquidity
Single market per token paired with FeelsSOL eliminates fragmentation and simplifies routing
Autonomous Market Making
Protocol-owned strategies provide consistent liquidity without relying on external market makers
The Future of DeFi
Transforming Speculation into Value
Feels Protocol represents a fundamental shift in how decentralized markets operate. By converting short-term trading activity into permanent value through programmatic market making, we create markets that strengthen with every trade.
The combination of concentrated liquidity, autonomous strategies, and mathematical solvency guarantees provides token communities with structural protections that were previously impossible.
This is more than just another AMM—it's a new paradigm for building sustainable, self-improving markets on-chain.
Feels Protocol