Defining good behavior for just-in-time liquidity bots

Role of JIT bots in the Mosaic ecosystem

  • Single-sided liquidity provisioning, which means community members can provide liquidity just for one asset;
  • Liquidity forecasting leveraging machine learning, which allows Mosaic to forecast liquidity shortfalls and rebalances its vaults proactively;
  • Rebalancing of its vaults through external bridges such as Connext or Hop.

Desirable features for the cross-chain liquidity marketplace

Capital efficiency

Decentralization

Desirable features for JIT bots

Provide Liquidity Just In Time

Provide Just Enough Liquidity

Withdraw Liquidity Just In Time

Reap benefits of cross chain extractable value

  • Provide and withdraw liquidity to the same network (Strategy 1)
  • Use the API in the active liquidity SDK to check for lowest network fees for withdraw and then withdraw to where the fee is lowest (Strategy 2)
  • Set a network to withdraw to and wait for when the fee is below a certain threshold, which allows you do transfer to another chain while earning a fee (Strategy 3)
  • Set up two bots on different networks and loop the liquidity provisioning/withdrawal strategis. Provide liquidity on network A, withdraw to B, use the liquidity to provide liquidity on A, then withdraw on A, and repeat (Strategy 4)
  • Convert part of the liquidity to native gas tokens for lower network fees. (Strategy 5)

Conclusion

--

--

--

The face of DeFi's future.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Utilize Redis with Golang (Go)

Help! I’m a new email developer!

Why use Linux in development?

Alternatives to Xignite for Precious Metals Rates API

What You Need To Know About AWS Savings Plans

What Happened to the Access Roadmap?

Automating Elasticsearch Reindex Process

#AI_ML_POTUS_GodModeOn #Engage

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Composable Finance

Composable Finance

The face of DeFi's future.

More from Medium

The Composable Parachain is live on Polkadot

Announcing the Integration Partnership between Zenlink and Gear Network, a Polkadot WASM Smart…

Parallel AMM Guide

Kujira To Launch on Karura’s EVM+, Providing Effective Liquidations for aUSD.