I'm not the only inventor on the block.

I've had quite a few conversations with Vitomir Jevremovic recently about a new concept he's come up with - the capped AMM.

It's an interesting DeFi concept that he's built a prototype for, which places an upper limit on how much of one of the tokens in the token pair the contract can hold.

In this video, I briefly explain how AMMs work, and then cover what different properties the cap adds to the AMM. They relate to price-discovery, and an alternate way of releasing a token into a finance ecosystem.

As it's a very new idea, it may have all sorts of other unexpected applications and properties that will become apparent over time.

See Vitomir's write-up at https://docs.all.art/protocol/camm for more details.

Vitomir is using it to provide increased liquidity in the NFT licensing market, and how he plans to do this is the topic of my next video.