Blackhole AMM

Blackhole is a decentralized exchange on Avalanche. Its liquidity pools pay providers with trading fees, and in return the provider’s deposit is rebalanced against every price move between the paired assets. That is impermanent loss, and it cannot be explained to a mass-affluent client in two sentences or defended when it bites. The class rule rejects the whole AMM category on those grounds, regardless of how well any one exchange is built. At the 2026-08-16 survey Blackhole held about $1.13M on Avalanche.

Review triggers: events that reopen the verdict
• Ships a product line without impermanent-loss exposure that merits its own review

Watched nightly: a warning on its venues or files, or a cited document that changes, reopens the memo. The first confirmation is due 2026-11-15.

The research file

Mechanism applicability

Blackhole offers volatile constant-product, stable-swap and concentrated-liquidity AMMs on Avalanche. In every measured pool type, LP capital supplies paired reserves to traders; concentrated positions additionally choose active price ranges. Fees, BLACK emissions and automated range managers can change compensation or maintenance, but do not remove reserve-composition risk. The shared version-1 amm-lp dossier therefore applies.

Current observation and perimeter

The DefiLlama protocol API read on 2026-08-16 classified Blackhole AMM as a DEX and reported approximately $1.13M entirely on Avalanche. Current Blackhole documentation describes the live DEX, weekly gauge epochs, v2-style, stable and concentrated pools, and Algebra Integral plugin-based concentrated liquidity. The existing Avalanche perimeter and AMM classification remain current.

Control, loss and exit applicability

Pool formulas and price ranges determine how arbitrage changes LP inventory. veBLACK voters direct weekly BLACK emissions; staked v2 LP fees flow to gauges, while concentrated-pool fees flow to gauges, so incentive and staking choices affect realized return. Governance, fee-manager and plugin roles add control dependencies. Removing liquidity returns the position’s then-current paired inventory; narrow ranges can magnify one-sided outcomes.

Why the class rule decides

Blackhole’s own documentation expressly identifies impermanent loss, constant-product reserves and concentrated range risk, creating direct claim-to-source fit. Multiple pool formulas, audits, gauges and ALM integrations do not convert the client claim into single-asset yield. The shared version-1 amm-lp dossier therefore decides. Reopen only for a separately measured Blackhole product without paired or synthetic market-making exposure, followed by a fresh control, incident, liquidity and alternatives review.

Class rule

The amm lp class is outside the approved structures, so every protocol in it is not approved until the rule changes. The rule is about the structure, not an adverse finding about this protocol, and it is not a client instruction. The events that would reopen it are listed with the memo.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• Blackhole — protocol and AMM overview · primary · accessed 2026-08-16
  Supports: Avalanche, AMM models, fees, emissions, gauges, current lifecycle
• Blackhole — pool formulas and risks · primary · accessed 2026-08-16
  Supports: constant product, stable pools, concentrated ranges, impermanent loss, ALM
• Blackhole — LP fees and gauge rewards · primary · accessed 2026-08-16
  Supports: LP fees, BLACK emissions, staked positions, gauges, weekly epoch
• Blackhole — contracts, roles and audits · primary · accessed 2026-08-16
  Supports: audits, Algebra Integral, plugins, upgradable architecture, monitoring
• DefiLlama — Blackhole AMM survey record · secondary · accessed 2026-08-16
  Supports: current TVL, Avalanche, DEX category, survey observation

Inherited controls

The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The layer with the most administrative power sets the position’s effective control; that describes control, not quality or suitability.