# Overview

At Capricorn, we aim to bring users the best onchain swap experience through hyper-capital efficient liquidity.

### Proactive AMM (PAMM) Pools 

Capricorn’s flagship liquidity pool has a pricing engine that actively refreshes spreads and depths every block using up-to-the-moment oracle feeds, thus making it “proactive”. Compared to constant product or concentrated liquidity AMM pools, Proactive AMM pools uses a dynamic pricing curve that relies on the world fair price rather than the pool’s balance of assets as the key mechanism to price assets. Brief architecture overview:

* **Pool contract**: open‑source and immutable (no proxy). Maintains reserves and enforces accounting/slippage, while delegating quote computation. Calls into the pricing engine below to get real-time oracle-adjusted pricing.
* **Pricing engine**: proprietary, closed‑source on‑chain module referenced by the pool to compute amounts using oracle data. The engine address can be rotated by admin subject to a version guard.

### Concentrated Pools (Capricorn CL)

PAMM pools are best suited for major trading pairs where there is a world fair price. In order to support the longer-tail pairs where price discovery happens onchain, Capricorn has concentrated pools that are conceptually similar to Uniswap V3 pools.