Lifinity is a highly optimized proactive market maker designed to improve capital efficiency and reduce impermanent loss. Key features of Lifinity:

• Concentrated Liquidity. Lifinity leverages its liquidity in order to concentrate capital around the market price, which greatly improves capital efficiency for liquidity providers while enabling traders to swap with deeper liquidity
• Proactive Market Making. Lifinity uses Pyth's high-fidelity market data as its key pricing mechanism. Since the protocol does not rely on arbitragers to adjust the balance of assets in its pools to match the market price, the risk of impermanent loss can be reduced or even reversed
• Rebalancing Mechanism. The challenge of proactive market making is in maintaining a 50:50 pool balance without incurring impermanent loss. Lifinity is designed to automatically rebalance its pools by adjusting its liquidity to favor trades that move the pool balance toward equilibrium while generating a profit from market making.

LFNTY is Lifinity's governance token. LFNTY's main function is as the point of entry/exit for those who want to increase/reduce their exposure to Lifinity.