1 Why vAMM does not need a liquidity pool? Perpetual Protocol’s vAMM uses the same 𝑥∗𝑦=𝑘 constant product formula as Uniswap. One of the very differences between vAMM and AMM is that vAMM does not require a physical liquidity pool. Although the price is still discovered by the AMM curve, traders indeed store their collateral in a smart contract…