Lifinity Protocol is the first proactive market maker on Solana that aims to enhance capital efficiency and minimize impermanent loss. The protocol introduces several DEX innovations, including concentrated liquidity combined with lazy liquidity provision, eliminating the need for position adjustments. It also reduces or even reverses impermanent loss by utilizing an oracle as the primary pricing mechanism and generates profit through delayed rebalancing of pools.

In terms of tokenomics, Lifinity continuously acquires liquidity for all token pairs provided by the DEX. It features an improved veToken model with optional decaying, linear unlocking, and native tokenization. The protocol incentivizes veToken holders to secure permanent liquidity by offering bribes. The LPs' share of fees is dynamically adjusted to maintain the optimal level of liquidity. Lifinity also plans to launch its token through a veIDO.