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Ammalgem: The Poison Is the Medicine

Why Short Selling, Dynamic Fees, and Market Stress Can Make DeFi Stronger

← Part 1

In part two of my conversation with Will Fey, founder of Ammalgem, we go deeper into the protocol’s design and the problems it was built to solve. Will explains why Ammalgem removes external price oracles, how short selling can expose inflated valuations while rewarding token holders, and why swap fees rise when traders move the market. We also discuss cascading liquidations, how the protocol responds when liquidity comes under stress, and why Ammalgem takes a different approach from concentrated liquidity while still trying to keep DeFi accessible to ordinary users.

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About the Crypto Confidence Podcast

The Crypto Confidence Podcast explores the people, ideas, and technology shaping the future of crypto. Episodes feature conversations with founders, builders, and researchers working across the crypto ecosystem.

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Disclaimer:

The information in this publication is for educational purposes only and does not constitute financial, investment, or legal advice. Always do your own research before making any financial decisions. Cryptocurrency investments carry risk, and past performance is not indicative of future results. I actively invest and trade in the crypto markets, and my personal portfolio and holdings change frequently. Nothing I share should be interpreted as a guarantee of performance or a recommendation to buy or sell any asset.

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