Ammalgam is a decentralized protocol that merges lending and trading into a system called a Decentralized Lending Exchange (DLEX). It enhances capital efficiency for liquidity providers (LPs) by utilizing leverage to create concentrated liquidity-like positions, potentially increasing yields by 20%. Unlike traditional models, LPs focus on liquidations instead of monitoring liquidity ranges. Ammalgam operates permissionlessly, without oracles or dependencies, and is based on a fork of Uniswap V2 but optimized for higher capital efficiency and yield.