DeFi is sitting on trillions in capital that’s barely breaking a sweat.

Idle liquidity is the silent killer. LPs lock up assets in pools. Lenders park tokens into protocols. Traders stake collateral to open positions. But what’s the common denominator?

Most of that capital is only doing one job at a time.

And that’s a problem. In an industry where capital efficiency is supposed to be king, most DeFi protocols still treat liquidity like it’s disposable. You either lend, trade, or provide - you need to pick one and hope it pays off.

But what if your liquidity didn’t have to choose? What if your assets could multitask by earning fees, farming yield, and powering DeFi markets all at once?

Welcome to the world of Dual-Purpose Pools.

Right now, DeFi TVL sits north of $100B but capital efficiency is still lagging behind.

Uniswap v2 spread liquidity thinly across the entire price curve, with studies showing that over 85% of capital was often idle. Uniswap v3 tried to fix this with concentrated liquidity, but most LPs still end up out-of-range, especially during volatile market swings.

Lending markets? Oversupplied with stablecoins and blue-chip assets, especially in risk-off market conditions, and underborrowed.

Staked collateral on perpetual DEXs? Just chilling.

Take GMX, for example: collateral is posted in the form of USDC or ETH, but the protocol itself doesn’t lend or stake that capital further. Instead, it just sits there securing your position.

dYdX V4 improved some aspects by adding staking incentives, but the core problem remains - collateral is locked and non-productive outside of margin usage. Despite its optimizations, Morpho doesn’t put deposited collateral to productive use. Similarly, many blue-chip assets on Aave are designated as "isolated" and can’t be used as collateral at all. The result is significant capital inefficiency across the ecosystem, where vast amounts of liquidity sit idle without contributing to yield or protocol utility.

We’ve created silos: capital sits in either an LP vault or a lending pool or a margin engine.

This single-use design leaves billions on the table - bleeding opportunity cost and dragging yields down across the board. It’s no wonder LPs are tired of getting rekt by impermanent loss, low fee volumes, and mercenary flow.

Dual-Purpose Assets flip the script.

Instead of sitting idle in one protocol, your assets are composable across functions. One deposit fulfills multiple jobs.

In Ammalgam, this means:

• Supplying liquidity for swaps

• Backing loans and margin for trading

• Earning lending interest on unused capital

• Capitalizing on fees from volatility as a liquidity provider.

DPs are built on Ammalgam’s DLEX architecture - a composable primitive that allows liquidity to flow dynamically between LP, lending, and margin positions. All in a single vault. And done without fragmenting your capital or needing to jump between protocols.

In traditional DeFi, trading and lending operate in separate ecosystems. This leads to Split Capital, Split Fees, and friction for LPs who want to optimize their positions. Capital sits idle, waiting to be borrowed or stays un-leveraged in LP positions, praying for volume.

DP Pools eliminate that inefficiency.

With Ammalgam’s DLEX architecture, capital isn’t hard-coded into a single function. Liquidity flows dynamically based on market conditions, protocol demand, and user strategies. That means:

• Every LP position is auto-optimized: if liquidity isn’t actively used for swaps, it earns lending interest instead.

• LPs can borrow against their own positions: Want to scale up fees without leaving the protocol? You can now leverage your existing LP position.

• No cross-protocol piecing together: No need to deposit on Aave for lending, then Uniswap for swaps, then Gearbox for leverage. Ammalgam combines all three natively.

Most lending protocols cap LTVs (loan-to-value) at ~80% for safe assets and that’s assuming sufficient collateral and low volatility. But that model breaks when you try to combine dozens of assets across many overlapping pools.

Ammalgam’s DP Pools calculate LTV based on net balances within a single AMM pair, allowing users to borrow against their positions with greater efficiency while keeping exposure isolated to that pair. No cross-asset contagion, and no unnecessary overcollateralization.

Instead of having your liquidity just sit and wait for volume, Ammalgam lets you earn fees from swaps, lend idle capital, and deploy custom strategies all from a single interface. Every dollar you deposit is doing something: earning swap fees, generating interest, or acting as leveraged collateral.

With price ranges, time-weighted oracles, and dynamic fees, the protocol reduces manipulation and safeguards against toxic flow. It’s DeFi-native infrastructure for LPs who want to actually win.

The result is that LPs can access leverage more efficiently, without depending on complex, multi-asset lending protocols. By concentrating liquidity within isolated AMM pairs and enabling reuse of idle capital, Ammalgam increases capital productivity for both traders and LPs. That means more opportunities for LP yield, and deeper, more efficient liquidity for trading.

Let’s break it down.

We’ve seen how Uniswap v3 gave LPs more control with concentrated liquidity. Ammalgam goes further to give LPs full-spectrum strategy tools across liquidity, lending, and leverage, while abstracting complexity under the hood.

For traders, it means more capital-efficient markets with native access to margin all within a single liquidity layer.

For LPs, it means more ways to win and fewer ways to get rekt.

We are shifting toward programmable capital, where your assets do more than just exist. As market cycles evolve, DeFi protocols need to do more with less capital. TVL flexing is out. Efficiency is in.

Dual-Purpose Pools don’t just make deposits more productive. They unlock a future where one deposit powers an entire stack: swaps, lending, margin, hedging, and beyond.

It’s the next step in DeFi modularity, and Ammalgam is building the rails to make it accessible to power users and casual LPs alike.

Ammalgam Alpha is now open.

Get early access, try out impermanent gain mechanics, and see what your liquidity can really do.

DeFi is sitting on trillions in capital that’s barely breaking a sweat.

Idle liquidity is the silent killer. LPs lock up assets in pools. Lenders park tokens into protocols. Traders stake collateral to open positions. But what’s the common denominator?

Most of that capital is only doing one job at a time.

And that’s a problem. In an industry where capital efficiency is supposed to be king, most DeFi protocols still treat liquidity like it’s disposable. You either lend, trade, or provide - you need to pick one and hope it pays off.

But what if your liquidity didn’t have to choose? What if your assets could multitask by earning fees, farming yield, and powering DeFi markets all at once?

Welcome to the world of Dual-Purpose Pools.

Right now, DeFi TVL sits north of $100B but capital efficiency is still lagging behind.

Uniswap v2 spread liquidity thinly across the entire price curve, with studies showing that over 85% of capital was often idle. Uniswap v3 tried to fix this with concentrated liquidity, but most LPs still end up out-of-range, especially during volatile market swings.

Lending markets? Oversupplied with stablecoins and blue-chip assets, especially in risk-off market conditions, and underborrowed.

Staked collateral on perpetual DEXs? Just chilling.

Take GMX, for example: collateral is posted in the form of USDC or ETH, but the protocol itself doesn’t lend or stake that capital further. Instead, it just sits there securing your position.

dYdX V4 improved some aspects by adding staking incentives, but the core problem remains - collateral is locked and non-productive outside of margin usage. Despite its optimizations, Morpho doesn’t put deposited collateral to productive use. Similarly, many blue-chip assets on Aave are designated as "isolated" and can’t be used as collateral at all. The result is significant capital inefficiency across the ecosystem, where vast amounts of liquidity sit idle without contributing to yield or protocol utility.

We’ve created silos: capital sits in either an LP vault or a lending pool or a margin engine.

This single-use design leaves billions on the table - bleeding opportunity cost and dragging yields down across the board. It’s no wonder LPs are tired of getting rekt by impermanent loss, low fee volumes, and mercenary flow.

Dual-Purpose Assets flip the script.

Instead of sitting idle in one protocol, your assets are composable across functions. One deposit fulfills multiple jobs.

In Ammalgam, this means:

• Supplying liquidity for swaps

• Backing loans and margin for trading

• Earning lending interest on unused capital

• Capitalizing on fees from volatility as a liquidity provider.

DPs are built on Ammalgam’s DLEX architecture - a composable primitive that allows liquidity to flow dynamically between LP, lending, and margin positions. All in a single vault. And done without fragmenting your capital or needing to jump between protocols.

In traditional DeFi, trading and lending operate in separate ecosystems. This leads to Split Capital, Split Fees, and friction for LPs who want to optimize their positions. Capital sits idle, waiting to be borrowed or stays un-leveraged in LP positions, praying for volume.

DP Pools eliminate that inefficiency.

With Ammalgam’s DLEX architecture, capital isn’t hard-coded into a single function. Liquidity flows dynamically based on market conditions, protocol demand, and user strategies. That means:

• Every LP position is auto-optimized: if liquidity isn’t actively used for swaps, it earns lending interest instead.

• LPs can borrow against their own positions: Want to scale up fees without leaving the protocol? You can now leverage your existing LP position.

• No cross-protocol piecing together: No need to deposit on Aave for lending, then Uniswap for swaps, then Gearbox for leverage. Ammalgam combines all three natively.

Most lending protocols cap LTVs (loan-to-value) at ~80% for safe assets and that’s assuming sufficient collateral and low volatility. But that model breaks when you try to combine dozens of assets across many overlapping pools.

Ammalgam’s DP Pools calculate LTV based on net balances within a single AMM pair, allowing users to borrow against their positions with greater efficiency while keeping exposure isolated to that pair. No cross-asset contagion, and no unnecessary overcollateralization.

Instead of having your liquidity just sit and wait for volume, Ammalgam lets you earn fees from swaps, lend idle capital, and deploy custom strategies all from a single interface. Every dollar you deposit is doing something: earning swap fees, generating interest, or acting as leveraged collateral.

With price ranges, time-weighted oracles, and dynamic fees, the protocol reduces manipulation and safeguards against toxic flow. It’s DeFi-native infrastructure for LPs who want to actually win.

The result is that LPs can access leverage more efficiently, without depending on complex, multi-asset lending protocols. By concentrating liquidity within isolated AMM pairs and enabling reuse of idle capital, Ammalgam increases capital productivity for both traders and LPs. That means more opportunities for LP yield, and deeper, more efficient liquidity for trading.

Let’s break it down.

We’ve seen how Uniswap v3 gave LPs more control with concentrated liquidity. Ammalgam goes further to give LPs full-spectrum strategy tools across liquidity, lending, and leverage, while abstracting complexity under the hood.

For traders, it means more capital-efficient markets with native access to margin all within a single liquidity layer.

For LPs, it means more ways to win and fewer ways to get rekt.

We are shifting toward programmable capital, where your assets do more than just exist. As market cycles evolve, DeFi protocols need to do more with less capital. TVL flexing is out. Efficiency is in.

Dual-Purpose Pools don’t just make deposits more productive. They unlock a future where one deposit powers an entire stack: swaps, lending, margin, hedging, and beyond.

It’s the next step in DeFi modularity, and Ammalgam is building the rails to make it accessible to power users and casual LPs alike.

Ammalgam Alpha is now open.

Get early access, try out impermanent gain mechanics, and see what your liquidity can really do.