Understand
Pure AMM Vs Vault Settlement
Understand when a swap is ordinary pool settlement and when external collateral logic is part of the trade.
The protocol sits next to Uniswap v4 rather than replacing it. Some paths are ordinary AMM swaps with hook checks. Other paths use vault, issuer, broker, or controller state to make collateral settlement possible.
The Difference
| Mode | What prices the trade | What extra state matters |
|---|---|---|
| Pure AMM | Pool liquidity and v4 swap math | Hook allowlist and risk checks |
| Native stablecoin | AMM route plus collateral policy | Collateral manager, controller, oracle, solvency |
| Registered issuer | AMM route plus issuer material | AtomicBroker inventory, permits, issuer attestations |
| Liquidation | Controller policy and liquidation inventory | Position health, oracle state, liquidation hook data |
Why It Matters
A frontend can make all of these paths look like a swap. The system cannot treat them as the same operation internally. Each path has different rollback rules, operator alerts, and administrative blast radius.
Design Implication
Docs and operations should describe a user journey first, then point to the contracts involved. Component-first docs hide the difference between "the pool could not fill" and "external settlement state was unsafe."
Source Files
src/HybridCollateralSettlementHook.solsrc/CollateralManager.solsrc/AtomicBroker.solsrc/LiquidationController.sol