# Agentic Bin Manager

[Research Post on Automated Liquidity](https://research.nunchi.trade/t/about-the-automated-liquidity-market-microstructure-category/11/3)

The Nunchi Agentic Bin Manager (ABM) is the market-making engine of the Yield Exchange (YEX) - the engine that turns LP capital into tight spreads, high fee capture, and lower inventory risk across our yield perpetuals.

At a high level, the ABM combines three pillars:

* **Oracle-Bound Bin Geometry** – Liquidity is placed in narrow “bins” around a fair, oracle-derived price, concentrating depth where real flow trades and minimizing bleed in dead zones.
* **Deterministic Inventory Policy** – Self-flattening skew, soft/hard caps, and reduce-only clips keep makers from drifting into toxic inventory during trends or volatility spikes.
* **Cooperative Batch Clearing** – A novel defensive rebalancing mechanism that nets inventory between makers at fair value, sharply reducing arbitrage leakage to external traders.

Instead of paying arbitrageurs to clean up mispriced books, the ABM lets Nunchi LPs keep more of the edge they generate, structurally improving risk-adjusted APY over time.

For a full technical walkthrough of the model and math, see [our research post in collaboration with Brown University](https://research.nunchi.trade/t/about-the-automated-liquidity-market-microstructure-category/11/3?u=ss_nunchi).

Where it runs: There is a dedicated ABM instance for each market on the YEX, continuously tuning bins, inventory, and internal netting to current conditions.

Active USDYP trading

* [Volatility Indices](https://app.hyperliquid-testnet.xyz/trade/yex:VXX)
* [US Treasuries Indices](https://app.hyperliquid-testnet.xyz/trade/yex:US3M)
* [Bitcoin Funding Indices](https://app.hyperliquid-testnet.xyz/trade/yex:BTCSWP) 

<br>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.nunchi.trade/abm.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.