After about a year of development and testing, the next-gen DeFi protocol Ammalgam is launching on mainnet. The so-called Decentralized Lending Exchange (DLEX) merges lending, borrowing, and market-making into a single onchain system to help bolster liquidity and efficiency.
In short, Ammalgam’s unified lending and trading execution architecture is meant to enable capital reuse rather than fragmentation across separate DeFi verticals. “Your funds are optimized, reducing structural risk and improving potential yield,” a spokesperson explained, particularly passive Liquidity Providers.
Ammalgam first came to public light in 2024 during its $2.5 million seed round, which was co-led by Lightspeed Faction and Framework Ventures. Other notable backers included Robot Ventures, Bodhi Ventures, NGC Ventures, DeWhales, Blockchain Founders Fund, and angels including Kain Warwick, Anton Bukov, Spencer Noon, and Jordi Alexander.
At the time, investors like Santiago R Santos noted the relatively simple idea of combining lending and trading in one protocol surprisingly represented “something new” for the world of automated market makers.
In particular, the unified liquidity system provides a platform for creating unlimited trading strategies while also improving capital efficiency for LPs.
Additionally, unlike many AMMs, Ammalgam is designed to operate without external price oracles, a bid to not only keep pricing and risk management onchain, but also reduce the risks from a common attack vector and vulnerability.
“We’ve watched too many fully audited protocols fail because a price feed lagged, stalled, or was manipulated,” said Will Fey, founder of Ammalgam. “When pricing infrastructure determines who gets liquidated and when, resilience comes from reducing dependency on any single signal and grounding risk in what can actually execute onchain.”
Instead of using oracles — systems that bring offchain data onchain — Ammalgam derives its pricing and risk decisions directly from onchain executable liquidity. This means that liquidations, borrowing limits, and other mechanics stay grounded in what can actually be executed onchain.
“At Ammalgam, we focused on reducing how much the system depends on signals it can’t control and grounding risk in what can actually execute onchain. ” Fey said.
Onchain Vaults and strategies
Coinciding with the mainnet release, the Ammalgam team is also rolling out Vaults, a series of managed, onchain strategy products for users who want passive exposure to advanced DeFi plays, without manually handling leverage, rebalancing, or multi-protocol coordination.
The protocol’s Vaults are built using Lagoon Finance’s infrastructure, with Ammalgam providing the actual strategies and execution.
Users will be able to deposit assets like USDC, ETH or BTC into a Vault, if approved by a Vault curator, in exchange for an ERC-7540-compliant share token representing their proportional ownership in the strategy.
According to the announcement, there are a few caveats regarding capital deployment and redemptions. Some vault strategies, for instance, may initially allocate capital to existing third-party vaults before transitioning to Ammalgam-native pools “as liquidity and strategies mature.”
Moreover, “because Vaults hold active positions, redemptions are not always instantaneous.” That said, expected settlement windows will be disclosed, along with management and performance fees.
With the official rollout of the Ammalgam protocol, the team is now looking to focus more on these managed, onchain strategies. “Additional Vault configurations will be released as liquidity and usage grow,” the announcement reads.
OxMacro, ChainSecurity, Spearbit, and Cantina provided security reviews for Ammalgam’s mainnet.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
