Biatec DEX - Concentrated Liquidity on Algorand
November 2, 2025 - We're excited to expand our beta testing program for Biatec CLAMM, the first concentrated liquidity automated market maker on Algorand. As we onboard more early users and gather valuable feedback, we're seeing tremendous potential for this innovative protocol to transform decentralized trading on Algorand.
This innovative protocol brings concentrated liquidity to Algorand's high-performance blockchain, combined with unique features like on-chain VWAP price oracles and integrated identity verification. But why does Algorand need this breakthrough, and what makes Biatec CLAMM special?
Why Algorand Needs Concentrated Liquidity AMM
Algorand has always been a leader in blockchain efficiency - sub-3-second finality, carbon-negative consensus, and unmatched transaction throughput. However, the DeFi landscape on Algorand has lagged behind other chains in one critical area: capital efficiency.
Traditional AMMs require liquidity providers to allocate capital across the entire price range, leading to significant capital inefficiency. With concentrated liquidity, LPs can focus their capital within specific price ranges where trading actually occurs, dramatically improving yields and reducing slippage for traders.
The timing is perfect. As DeFi matures, users demand better capital efficiency and sophisticated trading tools. Biatec CLAMM brings these advanced features to Algorand while leveraging the chain's unique advantages: instant finality, low fees, and robust security.
🎯 The Power of Concentrated Liquidity
At its core, Biatec CLAMM implements the revolutionary concentrated liquidity mechanism that has transformed DeFi trading. Here's what makes it special:
Precise Price Range Selection
Liquidity providers can now choose specific price ranges for their capital deployment. Instead of spreading $100 across the entire 0-∞ price range, LPs can concentrate it within $1.10-$1.20 for EUR/USD, where most trading occurs.
Real Impact:
- 300-400% higher yields for liquidity providers
- Reduced slippage for traders
- Better price discovery through optimized liquidity distribution
Mathematical Precision
Biatec CLAMM uses sophisticated mathematical models to ensure precise liquidity calculations:
// For detailed explanation of concentrated liquidity math, see:
// https://www.youtube.com/watch?v=wqZYZzO059M
const liquidity = calculateConcentratedLiquidity(assetAAmount, assetBAmount, priceMin, priceMax);
The protocol handles complex scenarios like fee accrual and proportional distribution, ensuring fair rewards for all participants.
📊 On-Chain VWAP Price Oracle
One of Biatec CLAMM's most innovative features is its built-in Volume Weighted Average Price (VWAP) oracle, providing real-time, manipulation-resistant price feeds directly on-chain.
Why VWAP Matters
Traditional price oracles can be manipulated through flash loans or concentrated trades. VWAP oracles average prices over time and volume, making them inherently resistant to manipulation.
Key Features:
- Real-time calculation of VWAP across trading periods
- Manipulation resistance through volume weighting
- On-chain transparency - no off-chain dependencies
- Multi-timeframe support - from 5-minute to daily VWAP
Technical Implementation
The VWAP oracle integrates seamlessly with the pool provider contract:
// Pool provider stores VWAP data in global state
interface PoolState {
vwap5m: bigint; // 5-minute VWAP
vwap1h: bigint; // 1-hour VWAP
vwap24h: bigint; // 24-hour VWAP
volume24h: bigint; // 24-hour volume
}
This provides reliable price feeds for DeFi protocols, lending platforms, and derivatives without relying on external oracle networks.
🔐 Enhanced Security with Biatec Identity
Security is paramount in DeFi, and Biatec CLAMM integrates the Biatec Identity Provider for advanced compliance and security features.
Identity Verification Integration
Every liquidity and swap operation verifies user identity through the Biatec Identity Provider:
// Identity verification in every transaction
await verifyIdentity({
appBiatecIdentityProvider: identityAppId,
minimumVerificationClass: requiredClass,
userAddress: senderAddress,
});
Compliance Features
- Configurable verification levels - from basic KYC to enhanced due diligence
- Geographic restrictions - comply with regional regulations
- Risk-based controls - dynamic limits based on verification status
- Audit trails - complete transaction history with identity verification
Security Benefits
- Reduced fraud risk through identity verification
- Regulatory compliance for institutional adoption
- Enhanced trust for retail users
- Sybil attack prevention through verified identities
🏦 Interest-Bearing Token Staking Pools
Biatec CLAMM introduces staking pools - a novel feature allowing same-asset pools for interest-bearing tokens.
How Staking Pools Work
Create pools where both assets are identical (e.g., ALGO/ALGO), generating interest-bearing tokens like B-ALGO:
// Create B-ALGO staking pool
const stakingPool = await createStakingPool({
assetA: 0n, // ALGO
assetB: 0n, // ALGO
tokenName: 'B-ALGO',
});
Use Cases
- Native Token Staking - B-ALGO for consensus rewards
- Asset Staking - B-USDC for lending protocol deposits
- Revenue Sharing - Distribute protocol fees to token holders
- Yield Aggregation - Combine multiple revenue streams
Reward Distribution
The protocol includes sophisticated reward distribution mechanisms:
// Distribute accrued rewards proportionally
await clammDistributeExcessAssetsSender({
poolId: stakingPoolId,
rewardAmount: accruedRewards,
executiveFeeAddress: authorizedAddress,
});
Exclusive Incentive for ALGO staking: Depositors to ALGO pools with over 30,000 ALGO automatically receive 100% of the staking rewards. This exclusive benefit is designed to reward significant capital commitments and support network stability without liquidity providers need to know how to run the algorand node.
⚡ Technical Excellence and Efficiency
Algorand Optimization
Biatec CLAMM is built specifically for Algorand's AVM:
- TEALScript contracts optimized for gas efficiency
- Box storage for scalable data management
- Atomic transactions ensuring consistency
- Sub-second finality for instant trade execution
Fee Protection Mechanism
A sophisticated fee protection system prevents newcomers from harvesting historical fees:
// Quadratic solution for fair LP minting
// X^2 + X(sumDistributedAndFees − Q) − Q * distributedBefore = 0
const lpTokensToMint = solveQuadraticForFairMinting(historicFees, newLiquidity, existingSupply);
This ensures that:
- Historical fees remain with original LPs
- New LPs get fair proportional rewards
- No economic exploits possible
Comprehensive SDK
The TypeScript SDK provides everything developers need:
import { clammAddLiquiditySender, clammSwapSender, clammRemoveLiquiditySender, getConfig } from 'biatec-concentrated-liquidity-amm';
🧪 Rigorous Testing and Security
Test Coverage
- Comprehensive Jest suites with 85%+ coverage
- Edge case testing for extreme scenarios
- Integration tests for end-to-end flows
- Security audits by independent AI and human auditors
Audit Results
Recent security audits confirm:
- ✅ No critical vulnerabilities
- ✅ Solid mathematical implementations
- ✅ Proper access controls
- ✅ Comprehensive error handling
🌟 Real-World Impact
For Liquidity Providers
- Higher APYs through concentrated positions
- Flexible management with custom price ranges
- Reduced impermanent loss through precise positioning
- Staking rewards from interest-bearing tokens
For Traders
- Better execution with optimized liquidity
- Lower fees on Algorand's efficient network
- Instant finality for immediate trade confirmation
- Advanced tools like VWAP price feeds
For Developers
- Full SDK with TypeScript support
- Comprehensive documentation and examples
- Active maintenance and regular updates
- Community support and integration guides
💡 Why Biatec?
The name "Biatec" carries historical significance - the first gold and silver coins in Central Europe (500 BC - 100 BC) were minted with the BIATEC label. Just as those coins represented innovation in ancient commerce, Biatec CLAMM represents innovation in modern digital finance.
Our mission: Build the most efficient, secure, and user-friendly DeFi infrastructure on Algorand, creating tools that empower users while maintaining the highest standards of compliance and security.
🏁 Getting Started
Ready to experience the future of DeFi on Algorand?
For Users
- Connect your wallet (Pera, MyAlgo, or others)
- Choose your assets and price range
- Add liquidity or start trading
- Earn rewards through staking pools
For Developers
npm install biatec-concentrated-liquidity-amm
import { getConfig } from 'biatec-concentrated-liquidity-amm';
const { configAppId, identityAppId, poolProviderAppId } = getConfig('mainnet-v1.0');
Documentation
- Basic Use Cases - Getting started guide
- Staking Pools - Interest-bearing tokens
- Security Audits - Independent audit reports
🌐 Join the Revolution
Biatec CLAMM represents more than just a new AMM - it's a fundamental improvement to how decentralized trading works on Algorand. By combining concentrated liquidity with on-chain price oracles, identity verification, and staking pools, we're creating a DeFi ecosystem that's:
- More Efficient - Better capital utilization
- More Secure - Enhanced verification and compliance
- More Accessible - User-friendly tools and interfaces
- More Sustainable - Fair fee distribution and rewards
The future of DeFi on Algorand starts today. Join us in building the most advanced decentralized exchange ecosystem in blockchain.
Built with ❤️ on Algorand for the decentralized future
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Beta Program: November 2, 2025 Version: v0.9.34 License: AGPL-3.0