Marketmake

ZSwap, Penumbra’s shielded AMM design, supports concentrated liquidity, allowing market allocation of liquidity over the price range of a trading pair.

Every market is also a market in information. As a fully shielded chain, Penumbra allows market makers to control the disclosure of information about their trading strategies, instead of revealing all of their activity to the world.

Transparent chains allow miners to extract value (MEV) by inspecting the contents of transactions and reordering or front-running them. However, as a fully shielded chain, Penumbra has no MEV because transactions do not leak data about user activity.