Ramses Exchange is a decentralized exchange on HyperEVM and Arbitrum built to improve capital efficiency and align incentives among traders and liquidity providers through a sustainable governance model.
Ramses Exchange users can convert native RAM tokens into xRAM at any time to vote in weekly epochs that direct emissions toward specific liquidity pools.
Ramses combines concentrated liquidity with a dynamic fee algorithm that adjusts swap fees based on market conditions, enabling liquidity providers to focus liquidity around active trading zones and reduce slippage.
Ramses uses a permissioned MEV framework to capture value that would otherwise go to external arbitrageurs. Authorized executors perform controlled arbitrage and backrunning across Ramses pools and connected venues so that trading inefficiencies benefit protocol participants.
Primer
Ramses Exchange launched on Arbitrum in March 2023 as a next-generation automated market maker (AMM) built to improve capital efficiency and align incentives across decentralized finance. The protocol later expanded to HyperEVM in July 2025 and now functions as a liquidity layer within the Hyperliquid ecosystem. Its development emphasizes sustainable design and broad community ownership rather than short-term yield extraction or venture-funded growth.
At the core of Ramses is the x(3,3) tokenomics model, a dynamic evolution of ve(3,3) that replaces fixed token lock-ups with flexible participation and a deflationary supply structure. The framework aims to reward active users, align emissions with productive liquidity, and strengthen governance through continuous participation.
Ramses integrates three primary systems that together define its market architecture:
Concentrated liquidity pools that improve capital deployment by allowing targeted price ranges.
A Dynamic fee algorithm that adjusts swap fees in real time to reflect market conditions.
Ramses Exchange implements an x(3,3) incentive model that addresses key shortcomings of the earlier ve(3,3) design. While ve(3,3) advanced Uniswap’s model by aligning incentives among traders, liquidity providers, and token holders, it faced issues such as inactive voting power, irreversible token locks, and reward concentration among protocol-owned positions. Ramses seeks to resolve these inefficiencies by replacing rigid lock-ups with a dynamic, incentive-based participation system that ensures rewards flow to active users rather than passive holders or protocols.
Governance and Emissions Mechanics
Users can convert the protocol’s native RAM token into xRAM at any time to participate in weekly governance epochs. When RAM is converted into xRAM, 50% of the tokens are permanently burned during conversion, and the remainder becomes non-transferable voting power. xRAM holders vote each week on which liquidity pools receive RAM emissions, with snapshots taken every Thursday at 00:00 UTC. A pool’s share of emissions is proportional to its vote weight, and can also stake xRAM also qualifies users to earn HYPE rewards through protocol buybacks.
For users seeking liquidity without leaving the system, Ramses also offers hyperRAM, a liquid staked version of xRAM that maintains the same underlying economics but omits direct voting rights and emission control. Minted 1:1 from xRAM at any time, it lets holders retain exposure to protocol rewards through an auto-compounding mechanism that continually increases the ratio of hyperRAM to xRAM. Because hyperRAM cannot trade below the xRAM redemption floor, it provides a liquid, yield-bearing option for passive participants.
Beyond individual gauges, the overall emission rate itself is adaptive. Weekly emissions can expand or contract by up to 25%, depending on protocol revenue. When revenue consistently exceeds emissions for multiple epochs, issuance can increase to support growth; when revenue falls below emissions, issuance can decrease to preserve sustainability. This adaptive mechanism links RAM issuance directly to protocol performance, maintaining sustainable inflation and ensuring that liquidity incentives expand only when supported by real revenue growth.
Ramses Architecture
Concentrated Liquidity
Ramses operates as a concentrated liquidity automated market maker (AMM) allowing liquidity providers (LPs) to allocate capital within defined price ranges rather than across the entire curve. Concentrating liquidity around active trading zones improves execution efficiency and reduces slippage compared to legacy constant-product pools.
The protocol supports both concentrated and full-range liquidity models. Concentrated pools are optimized for high-volume or correlated pairs and can approximate limit orders through single-asset positions that convert automatically as prices move through a range. Full-range pools maintain uniform liquidity across all prices and suit long-tail or low-turnover assets where precise price targeting offers limited benefit.
Ramses Fee Tiers
Each position is defined by a price range and tick spacing, which together determine how capital is deployed and how fees accrue. Narrow ranges focus liquidity tightly around the current price, increasing fee potential but requiring more active management. Wider ranges distribute liquidity more broadly, offering lower maintenance and reduced impermanent-loss exposure at the cost of lower fee intensity.
To account for different asset behaviors, Ramses uses six fee tiers that adjust tick spacing and fee levels by volatility. Lower tiers apply tighter spacing for stable or correlated assets, while higher tiers widen intervals for volatile pairs. This structure lets LPs match position precision and risk exposure to the characteristics of each market.
Dynamic Fees
Ramses employs an onchain dynamic fee algorithm that continuously adjusts swap fees in response to real-time market conditions. The controller monitors trade flow, realized volatility, and liquidity depth across Ramses pools while benchmarking against both decentralized and centralized venues, including Hyperliquid spot markets. This cross-venue monitoring helps maintain optimal routing efficiency and competitive pricing.
When market volatility is low, fees decrease to encourage volume and tighten spreads. As volatility rises, the algorithm increases fees to offset adverse-selection risk and protect liquidity providers from toxic flow. Default base levels are around 0.05% for correlated pairs and 0.30% for volatile assets, with typical caps between 1-2% under stress and up to 5% in extreme conditions. Parameters update on sub-minute intervals, allowing the protocol to adapt almost instantly to changing market dynamics.
The algorithm’s performance was observed during the flash crash on October 10, 2025. Swap fees on Ramses reportedly increased sharply as volatility surged, reducing exposure to toxic order flow and sustaining liquidity across pools. As conditions stabilized, parameters reverted toward baseline levels, restoring standard spreads without manual adjustment.
MEV Solutions
Ramses operates a permissioned MEV framework that internalizes value typically captured by external arbitrageurs. Authorized executors perform controlled arbitrage and backrunning across Ramses pools and integrated external venues within the HyperEVM ecosystem, ensuring that inefficiencies accrue to protocol participants. These operations currently run on HyperEVM, with HyperCore integration planned to enable atomic execution across Hyperliquid spot markets and other supported chains.
HyperRAM AMO – Arbitrages deviations around the hyperRAM redemption floor to stabilize the hyperRAM:xRAM exchange rate. Profits are compounded within hyperRAM, while exit proceeds are burned to reduce circulating supply.
Backrun Engine – Captures price discrepancies within blocks through privileged execution, protecting liquidity providers from toxic flow and reinforcing fee efficiency.
As of Nov. 12, 2025, future iterations are in development to extend this engine to cross-chain and lending-based arbitrage under the same controlled execution model.
This framework complements the dynamic fee algorithm by capturing inefficiencies that remain after trades occur rather than adjusting pricing parameters beforehand. It enforces minimum position-holding periods, ties rewards to realized fee growth, and penalizes just-in-time liquidity. These safeguards are designed to prevent short-term exploitation, align incentives with sustained participation, and ensure that captured value flows into hyperRAM compounding and emissions to support protocol sustainability and long-term liquidity depth.
Closing Summary
Ramses Exchange represents a notable evolution in decentralized exchange design, addressing the limitations of earlier ve(3,3) models while maintaining incentive alignment and governance control. The protocol’s x(3,3) framework replaces fixed token locks with an activity-based system that rewards participation and ties emissions to productive liquidity. Its use of dynamic fees and integration with HyperCore MEV infrastructure to enhance market responsiveness and retain value that might otherwise leave the ecosystem. While broader HyperCore integration remains in progress , Ramses has established a strong foundation on Arbitrum and HyperEVM and demonstrates growing potential as a central liquidity layer across both networks.
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