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Hybrid Liquidity Architecture (APMM + CLOB)

Signa combines two execution models rather than forcing all market activity through a single mechanism.

Two complementary layers

CLOB order book layer

This layer is intended for users who want explicit price control, passive quoting, or better handling for larger trades.

  • Limit orders
  • Visible depth
  • Better control over execution price

APMM continuous layer

This layer is intended to provide immediate access to liquidity, especially in thinner or longer-tail markets.

  • Continuous algorithmic pricing
  • Immediate execution path
  • Better support for markets without deep order books

Why combine both?

The two layers solve different problems:

  • The APMM helps ensure that markets remain tradable even when order-book activity is light.
  • The CLOB helps improve execution quality when there is enough active quoting and depth.

In practice, a hybrid model can improve market coverage while still allowing more sophisticated traders to interact through an order book.

Typical usage patterns

User TypePreferred MechanismReason
Retail TradersAPMMFaster access to execution
ArbitrageursAPMMContinuous price curve
Institutional InvestorsCLOBBetter price control and depth
Market MakersCLOBExplicit quoting strategy

Indicative efficiency claims

MetricValueExplanation
Capital Efficiency Boost3.2xRelative to fragmented multi-pool designs
Slippage Reduction87%Claimed benefit of the APMM base layer
Large Order Impact Resistance95%Claimed benefit of the CLOB layer

The Signal Layer of Prediction Markets