> For the complete documentation index, see [llms.txt](https://docs.lifinity.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lifinity.io/dex/v2.md).

# v2

v2 is a major upgrade to Lifinity’s market making algorithm with wide-reaching benefits.

The key innovation behind v2 is that pools target the initially deposited amount of the base asset rather than a 50/50 ratio between the two assets. The target amount of the base asset is only updated when the price changes by a predetermined amount, at which point the pool rebalances to a 50/50 ratio at the new price. 

Additionally, through its unique property of targeting a fixed amount of an asset in the pool, v2 enables price risk to be neutralized by borrowing the base asset or shorting its perp.

{% hint style="info" %}
For a deeper dive on our v2, please see our [Medium article on this topic](https://medium.com/@lifinity.io/lifinity-v2-introducing-the-delta-neutral-market-maker-5e4e42107860).
{% endhint %}


---

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