DP Pools (Lending + LPing in One)

Dual Purpose Pools (DP Pools) are a core feature of Ammalgam, combining Automated Market Making (AMM) and lending into one simple, unified system. Instead of separating trading and lending into different platforms, DP Pools let liquidity providers (LPs) earn both swap fees and lending interest at the same time, from the same deposit.

In most DeFi systems today, LPs have to split their capital to earn different types of yield. Market makers often borrow assets from lending protocols to leverage their liquidity positions, paying extra fees to a separate pool in the process - we call "Split Fees." Meanwhile, some AMMs lend out idle reserves to other platforms, causing parts of the pool to earn lending fees while others only earn trading fees - an inefficiency we call "Split Capital."

DP Pools solve both problems by letting every asset work on both sides at once. LPs don't need to move funds between protocols or choose between trading and lending returns. Market makers can borrow directly from the pools they help supply, paying only the spread between what they earn as lenders and what they pay as borrowers. This removes the need to interact with multiple protocols and reduces the overhead of running leveraged strategies.

This design unlocks a range of benefits for users:

• Maximized Capital Efficiency: Market makers earn trading and lending fees, keeping capital fully productive.
• Support for Advanced Strategies: Sophisticated users can leverage DP Pools for delta-neutral positions, leveraged market making, and more.

By merging two core DeFi functions into a single layer, DP Pools make liquidity more efficient, more flexible, and more rewarding for everyone who participates.