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| Main Authors: | , , |
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| Format: | Preprint |
| Published: |
2025
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| Subjects: | |
| Online Access: | https://arxiv.org/abs/2505.09423 |
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| _version_ | 1866908363366858752 |
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| author | Lao, Xin Chen, Shiping Wang, Qin |
| author_facet | Lao, Xin Chen, Shiping Wang, Qin |
| contents | Autonomous Market Makers (AMMs) rely on arbitrage to facilitate passive price updates. Liquidity fragmentation poses a complex challenge across different blockchain networks.
This paper proposes FluxLayer, a solution to mitigate fragmented liquidity and capture the maximum extractable value (MEV) in a cross-chain environment. FluxLayer is a three-layer framework that integrates a settlement layer, an intent layer, and an under-collateralised leverage lending vault mechanism. Our evaluation demonstrates that FluxLayer can effectively enhance cross-chain MEV by capturing more arbitrage opportunities, reducing costs, and improving overall liquidity. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2505_09423 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | FLUXLAYER: High-Performance Design for Cross-chain Fragmented Liquidity Lao, Xin Chen, Shiping Wang, Qin Computational Finance Trading and Market Microstructure Autonomous Market Makers (AMMs) rely on arbitrage to facilitate passive price updates. Liquidity fragmentation poses a complex challenge across different blockchain networks. This paper proposes FluxLayer, a solution to mitigate fragmented liquidity and capture the maximum extractable value (MEV) in a cross-chain environment. FluxLayer is a three-layer framework that integrates a settlement layer, an intent layer, and an under-collateralised leverage lending vault mechanism. Our evaluation demonstrates that FluxLayer can effectively enhance cross-chain MEV by capturing more arbitrage opportunities, reducing costs, and improving overall liquidity. |
| title | FLUXLAYER: High-Performance Design for Cross-chain Fragmented Liquidity |
| topic | Computational Finance Trading and Market Microstructure |
| url | https://arxiv.org/abs/2505.09423 |