# Automated Market Maker

radFi operates an Automated Market Maker, meaning that radFi is **always online** to quote prices for users interested in trading Runes.

Users that want to leverage radFi’s AMM will submit a PSBT from their trading wallet containing the assets they want to trade (e.g. 100,000 PUPS & 0.10 BTC) along with `OP_12` data containing their indicated upper and lower bound trading ranges (e.g. 50 sats <> 500 sats).

When traders request a quote, the price offered by radFi for a given asset pair (e.g. BTC/bUSD) is determined by a variation on the constant product formula (x\*y=k) known as [**Concentrated Liquidity**](https://docs.uniswap.org/concepts/protocol/concentrated-liquidity). Concentrated Liquidity allows LPs to set a custom range through which their assets will be made available for trading. radFi then executes their selected strategy when other traders request quotes.

The Concentrated Liquidity calculations themselves are implemented in an **EVM environment**. When a user requests a quote, the radFi AMM queries the EVM environment to determine the correct quote for the given trade request.
