DEXes · Review
ActiveLifinity V1 Review 2026: Oracle-Based Proactive Market Maker
Lifinity V1 is an oracle-based DEX on Solana that uses a proactive market maker to improve capital efficiency and reduce impermanent loss. Its current liquidity is small, so it suits curious users more than large traders.
By the DappsAtlas editorial team · Updated
DappsAtlas score
6.0/10
Mixed
Our verdict on Lifinity V1
6.0/10Lifinity V1 is a Solana DEX with a distinctive oracle-based, concentrated-liquidity design aimed at cutting impermanent loss, plus monthly revenue sharing for LFNTY holders. It suits DeFi users who want to study or try this market-maker model with small amounts. The main caveats are small liquidity of roughly $74,000, no audits listed for this version, and fee details that are not published on the pages reviewed.
Score breakdown
How Lifinity V1 scores
- Security
- 4.5/10
- Ease of use
- 6.0/10
- Fees
- n/a
- Features
- 6.0/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Lifinity V1?
Lifinity V1 is a decentralized exchange on Solana that markets itself as the first oracle-based DEX on the network. Its listing describes it as the first proactive market maker on Solana, built to improve capital efficiency and reduce impermanent loss.
The protocol has been tracked since October 2022 and has its own token, LFNTY. The homepage says revenue is distributed monthly to token holders. Third-party write-ups describe it as pairing concentrated liquidity with lazy liquidity provision.
This listing is for V1. Its tracked liquidity is around $74,000, down about 1% over the past week, which is small for a Solana DEX. One news piece from late 2024 described Lifinity as one of Solana's oldest DeFi protocols regaining market share, but the numbers here show modest liquidity.
How Lifinity V1 works
A typical automated market maker prices trades using only the ratio of tokens in a pool, which can leave liquidity providers exposed to impermanent loss when prices move. Lifinity instead uses oracle price feeds to anchor pricing and to decide where its liquidity sits, which is why it is called a proactive market maker.
It combines this with concentrated liquidity, meaning capital is placed near the market price rather than spread across every possible price. The project calls its approach lazy liquidity provision. The goal is better capital efficiency, so a small pool can support more trading than it otherwise would.
The protocol also leans on protocol-owned liquidity, according to its tokenomics material. Trading revenue is shared with LFNTY holders on a monthly basis, according to the homepage. Precise parameters are not in the material reviewed.
6 features
Key features
01
Oracle-based pricing
Pool prices are guided by external oracle prices instead of relying only on trade flow. This is the core of the proactive market maker design.
02
Concentrated liquidity
Liquidity is concentrated around the relevant price range so less capital is needed to support a given trade size.
03
Lazy liquidity provision
Liquidity providers are not asked to rebalance positions constantly. The project describes this as lazy liquidity provision.
04
Protocol-owned liquidity
Project material describes protocol-owned liquidity, where the protocol holds part of the liquidity itself instead of renting it through token emissions alone.
05
Monthly revenue distribution
The homepage says revenue is distributed to token holders monthly, and the project's posts say it aims to increase revenue and reduce supply.
06
LFNTY token
The LFNTY token ties holders to the protocol's revenue and supply decisions.
Pros and cons
What we like
- Distinct design: oracle-based pricing with concentrated liquidity aims to use capital more efficiently.
- Stated aim of reducing impermanent loss, a main pain point for liquidity providers.
- Runs on Solana, where transaction costs are generally low.
- Long track record, tracked since October 2022.
- Revenue is distributed monthly to LFNTY holders, according to the homepage.
- The team has published a multi-part tokenomics series explaining its model.
Watch out for
- On-chain liquidity is small, at roughly $74,000 in value locked, so larger trades may face thin depth.
- No security audits are listed for this version in the tracker data.
- The team, fee schedule and token supply figures are not published on the pages reviewed.
- The oracle-based design depends on price feeds, which adds a dependency that plain constant-product pools lack.
- Exposure is limited to Solana, and the token's value and revenue share can move sharply.
Lifinity V1 fees
Swap fees, liquidity provider fee shares and the split between the protocol and token holders are not stated in the material reviewed. Anyone planning to trade or provide liquidity should check the fee shown in the app before confirming a swap.
You will also pay Solana network fees in SOL, which are separate from the protocol's own charges. The project says revenue is distributed monthly to LFNTY holders, which implies some portion of trading income goes to the token rather than only to liquidity providers.
Is Lifinity V1 safe?
The tracker data lists no audits for this version, and its homepage reviewed does not link audit reports. Smart-contract risk therefore stays material, as does reliance on oracle price feeds. Wrong or delayed oracle data can affect pricing in an oracle-based design.
As a DEX, trades settle from your own wallet, so you keep custody of funds, but you also carry wallet-security risk. Licensing or regulatory status is not published. Token holders should also consider that revenue distribution and token value can change. This is not financial advice.
6 steps
How to get started with Lifinity V1
- 1
Set up a Solana wallet and fund it with a small amount of SOL for network fees.
- 2
Open the official Lifinity site and confirm you are on the correct address before connecting.
- 3
Connect the wallet and check which pools or pairs are available and their liquidity depth.
- 4
Start with a small swap to see the quoted price, fee and slippage before committing more.
- 5
If you want to provide liquidity, read the project's tokenomics and liquidity documentation first and note the risks.
- 6
Keep records of transactions and review wallet permissions regularly.
Who Lifinity V1 is for
Lifinity V1 suits Solana users interested in how oracle-based market making and protocol-owned liquidity work, and LFNTY holders who follow the revenue-sharing model. It is less suited to large traders who need deep liquidity, or to anyone who requires audited contracts before using a protocol.
Lifinity V1 FAQs
What is Lifinity V1?
Lifinity is described as the first proactive market maker on Solana. It is a decentralized exchange that uses oracle price feeds and concentrated liquidity to price swaps, with the aim of improving capital efficiency and reducing impermanent loss.
What is a proactive market maker?
A proactive market maker adjusts its pool pricing and liquidity placement using external oracle prices instead of relying only on trades to move the price. Lifinity pairs this with concentrated liquidity and what it calls lazy liquidity provision, so capital is deployed more efficiently.
What is the LFNTY token for?
LFNTY is the protocol's token. The homepage says revenue is distributed monthly to token holders, and the project's tokenomics posts cover liquidity mining, protocol-owned liquidity and revenue. Exact terms are best checked in the official documentation.
Which blockchain does Lifinity use?
Lifinity runs on Solana only, according to the data reviewed. You need a Solana wallet and a small amount of SOL for network fees.
Is Lifinity V1 audited?
The tracker lists no audits for this version, and the audit status is not stated on its homepage reviewed. Treat it as unaudited unless the project publishes reports, and only use funds you can afford to lose.
Does Lifinity remove impermanent loss?
The protocol's stated aim is to reduce, and in its wording reverse, impermanent loss. That is a design goal and not a guarantee, and liquidity providers can still lose money to price moves, oracle problems or smart-contract bugs.
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How we checked
Sources
Last updated . Spotted an error? Tell us and we will correct it.