# Introducing Haiko

<figure><img src="https://1273546911-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FgQw40yNaDQ8b6I9fTxtG%2Fuploads%2Ftbj2TR8I9GSK3nIzV2qm%2FFrame%203%20(15).png?alt=media&#x26;token=f419e527-34c2-4dc4-b3c3-5cc8cd24dcff" alt=""><figcaption></figcaption></figure>

[Haiko](https://www.haiko.xyz/) is an audited Automated Market Maker (AMM) protocol live on [Starknet](https://www.starknet.io/en) Mainnet, providing simple access to market making yield with [Automated Vaults](https://haiko-docs.gitbook.io/docs/protocol/vaults), amongst other powerful features.&#x20;

In regular AMMs, liquidity providers create positions across static price range. In Haiko, positions are replaced by [Vaults](https://haiko-docs.gitbook.io/docs/protocol/vaults), which dynamically rebalance positions for users based on automated smart contract logic.&#x20;

This allows LPs to express their on-chain positions in more complex ways, and earn yield on *autopilot*.

***

You can learn more about some of Haiko's unique benefits below.

## **Automated** Vaults

[Vaults](https://haiko-docs.gitbook.io/docs/protocol/vaults) help LPs to manage liquidity by automatically rebalance positions as prices move, adapting to changing market conditions.&#x20;

Successfully providing liquidity on AMMs is difficult. Vaults help to:

1. **Integrate custom smart contract logic** to automate liquidity actions, help liquidity providers express on-chain positions, and better capture alpha
2. **Reduce risk** for LPs by internalising risk management logic such as impermanent loss caps
3. **Reduce gas costs** for LPs liquidity providers by socialising or negating the cost of position updates
4. **Curate the best yield opportunities** through community discovery and governance

[Vaults](https://haiko-docs.gitbook.io/docs/protocol/vaults) are a flexible, components-based framework for building smart contracts to automate market making, operating on proprietary data feeds and custom signals. For example, LPs can:

* Create liquidity positions that automatically follow the imputed oracle price of an asset
* Set dynamic bid-ask spreads based on realised market volatility
* Remove single-sided liquidity in trending markets, in response to recent price action, or based on the skew of a pool
* Dynamically adjust quotes to offset portfolio risk and impermanent loss

There are two types of Vaults in production:

1. **Strategy Vaults (V1)**: our original Vaults, which managed liquidity for LPs by placing and updating liquidity positions in Haiko's AMM as markets move
2. **Solvers (V2)**: our newest, improved vaults, which introduce zero-cost rebalancing and other features such as impermanent loss caps, private markets and pool-level governance.

We recommend new depositors to use Solvers. You can learn about the first Solver [here](https://haiko-docs.gitbook.io/docs/protocol/vaults/solvers-v2/replicating-solver).

## AMM

Haiko implements a hooks-based, concentrated liquidity AMM, customised to support multiple types of liquidity positions:

1. **Positions**: manual liquidity positions placed over a fixed (static) price range
2. **Strategies**: dynamic liquidity positions that automatically rebalance before incoming swaps via swap hooks
3. **Limit Orders**: liquidity positions that are automatically filled once the market price reaches the execution price of the order

You can learn more about the different [position-types](https://haiko-docs.gitbook.io/docs/protocol/amm/position-types "mention") and [order-types](https://haiko-docs.gitbook.io/docs/protocol/amm/order-types "mention").

Haiko markets are ownable and can be customised for different use cases via Flexible Market Schemas. You can learn more about these market types in [market-schemas](https://haiko-docs.gitbook.io/docs/protocol/amm/market-schemas "mention").

***

Haiko is audited by [Trail of Bits](https://www.trailofbits.com/) and [Nethermind](https://www.nethermind.io/). To start using Haiko, visit our interface [here](https://app.haiko.xyz/).