โš›๏ธ Physics Lab Pavilion

The Physics of DeFi

Markets aren't static. They flow. The Dynamo Turbulence Index models liquidity pools as non-Newtonian fluids, adapting fees in real-time.

12
Turbulence Index
LAMINAR

Market is calm. Liquidity flows smoothly. Fees are at their lowest.

Core Concepts
๐ŸŒŠ

Reynolds Number

Re = ฯVL / ฮผ

The ratio of inertial forces to viscous forces. In DeFi, this becomes the ratio of trade velocity to liquidity depth. High Re = turbulent market.

๐Ÿ“ˆ

GPCT Curve

fee = f(DTI, w)

Geometric Polynomial Curve Transformer. Fees aren't flatโ€”they morph between concentrated liquidity (laminar) and constant-product (turbulent) based on real-time conditions.

๐Ÿ”Œ

Circuit Breaker

if DTI > 80: HALT

When turbulence exceeds critical thresholds, trading halts automatically. No governance vote needed. The physics decides.

Market Regimes

Laminar

0 โ€“ 30
  • โœ“ Lowest fees (0.05%โ€“0.30%)
  • โœ“ Maximum capital efficiency
  • โœ“ Concentrated liquidity active
  • โœ“ Ideal for large trades

Transitional

31 โ€“ 60
  • โš  Moderate fees (0.30%โ€“1.0%)
  • โš  Curve begins widening
  • โš  Increased slippage tolerance
  • โš  Caution advised

Turbulent

61 โ€“ 100
  • โœ— High fees (1.0%โ€“5.0%)
  • โœ— Circuit breaker may trigger
  • โœ— MEV protection active
  • โœ— Emergency liquidity mode
Why Physics-Based Fees?

Traditional AMMs use fixed fees or slow governance. Dynamo adapts in real-time based on market physics.

๐Ÿ“Š

Static Fee AMMs

  • โœ— Fixed 0.3% fee regardless of conditions
  • โœ— Overcharges in calm markets
  • โœ— Underprices during volatility
  • โœ— LPs bleed during MEV attacks
  • โœ— No circuit breaker protection
๐Ÿ—ณ๏ธ

Governance Fees

  • โš  DAO votes to change fee tiers
  • โš  Weeks to respond to volatility
  • โš  Political, not technical
  • โš  Vulnerable to vote manipulation
  • โœ— Manual emergency response
โš›๏ธ

Dynamo AMM

  • โœ“ Fees adapt every epoch (6 seconds)
  • โœ“ DTI measures real market conditions
  • โœ“ Physics decides, not politics
  • โœ“ GPCT curve morphs to protect LPs
  • โœ“ Auto circuit breaker at DTI > 80

How the DTI Works

1

Measure Velocity

Track trade volume, frequency, and price impact over a rolling window.

2

Calculate Viscosity

Assess liquidity depth and oracle divergence to determine market "thickness."

3

Compute DTI

Combine metrics into a single 0-100 index. Update every epoch (6 seconds).

4

Adapt Fees

GPCT morphs the bonding curve to match current conditions. No governance delay.

Experience the Physics

Dive deeper into the DTI dashboard with live simulations and per-pool analytics.

Open Full Dashboard โ†’ Explore DeFi Hub