Mettalex DEX liquidity provisioning mechanism is based on the possibility for LPs to deposit their liquidity in stablecoin in a single token fashion rather than a ratio of multiple tokens. This latter scenario is very common in other decentralised exchanges available in the DeFi space (e.g. Uniswap). However, compared to these other protocols, Mettalex DEX offers to traders and LPs a lower volatility of the underlying assets thanks to the properties of position tokens. This, in addition to the single token (i.e. stablecoin) liquidity provisioning feature, reduces the impact of impermanent loss and slippage events which instead are controlled very efficiently. As previously mentioned, the stablecoin used as a collateral to issue position tokens has a combined value which is always equal to the collateral value. This means, on Mettalex each time liquidity is added to system or a tokens trade happens, the AMM rebalances the tokens in the pool by minting or redeeming position token pairs to keep the ratio of stablecoin to paired long and short tokens at around 1:1, in order to respect the aforementioned constraints about weights, prices and balances of tokens in each pool. If a trader comes in the market and buys Long tokens representing a specific underlying asset (e.g. Copper) thanks to the trade functionality, then the amount of Long tokens decreases, the weights are reapplied to guarantee balance and Long tokens price increases until it reaches the collateral value. This is balanced by Short position tokens value going to 0 as Long position tokens value increases. If trades keep happening in the same direction (i.e. high demand for Long tokens), then the imbalance between Long and Short value and amount increases and the cost of the token being highly demanded increases more and more.