> For the complete documentation index, see [llms.txt](https://docs.ax11.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ax11.org/automated-market-makers-amm/dynamicflow-amm-dfa.md).

# DynamicFlow AMM (DFA)

DynamicFlow AMM is an algorithm, generalized by Ax11, designed to determine asset prices and facilitate trading between asset pairs. It extends and normalizes the classic **x \* y = k** constant product formula used by Uniswap, providing a more flexible and generalized model for automated market making.

## **DFAMM VS CPAMM VS CLAMM**

The table below explains how Ax11 AMM differs from other AMMs in the market.

<table><thead><tr><th width="263">Capabilities</th><th width="156">        DFAMM</th><th width="147">      CPAMM</th><th>          CLAMM</th></tr></thead><tbody><tr><td>Capital Efficiency</td><td>            ✅ </td><td>           ❌</td><td>               ✅ </td></tr><tr><td>Auto-Compound Rewards</td><td>            ✅</td><td>           ✅</td><td>               ❌</td></tr><tr><td><a href="/pages/Bw7tqWOassA3ODRpz9yQ">Directionality</a></td><td>            ✅ </td><td>           ❌</td><td>               ❌</td></tr><tr><td><a href="/pages/IN2kkrVQJiZdE6BfFDMt">Automated Liquidity Concentration (ALC)</a></td><td>            ✅</td><td>           ❌</td><td>               ❌</td></tr><tr><td><a href="/pages/8LJewRQFiNuthV0u38D9">Dynamic Fee Selection (DFS)</a></td><td>            ✅</td><td>           ❌</td><td>               ❌</td></tr><tr><td><a href="/pages/m1NLVf7qWhTVc7BEcB7E">Fungible LP Tokens</a></td><td>            ✅</td><td>           ✅</td><td>               ❌</td></tr><tr><td><a href="/pages/kaYqnFJHlexrjGKtmqeQ">Trader Incentivization</a></td><td>            ✅</td><td>           ❌</td><td>               ❌</td></tr></tbody></table>

{% hint style="info" %}
CPAMM -> Constant Product Automated Market Maker (Uniswap V2)&#x20;

CLAMM -> Concentrated Liquidity Automated Market Maker (Uniswap V3)&#x20;

DFAMM -> Dynamic Flow Automated Market Maker (Ax11)
{% endhint %}