Liquidity Aggregation Engine

The Liquidity Aggregation Engine is a cornerstone of AbstraX’s technical infrastructure, designed to consolidate and optimize liquidity across decentralized exchanges (DEXs) spanning multiple blockchains. This system addresses the fragmentation inherent in the multi-chain ecosystem by creating a unified, efficient liquidity pool accessible to all AbstraX users and developers. Built with a modular smart contract architecture and advanced off-chain computation, the engine ensures high-performance trading and asset movement in a decentralized environment.

Technical Architecture

The Liquidity Aggregation Engine operates as a distributed system that interfaces with liquidity sources on both EVM-compatible and non-EVM blockchains.

Liquidity Adapters

Chain-specific smart contract wrappers normalize liquidity data from heterogeneous DEX protocols. For EVM chains, these are written in Solidity, while non-EVM chains (e.g., Solana) utilize Rust-based modules compiled to WebAssembly (WASM).
Adapters implement a standardized interface, extracting real-time data on pool reserves, token pairs, and swap fees, which are then mapped to a universal schema.

Order Book Synthesis

An off-chain aggregator constructs a synthetic order book by combining liquidity data from all integrated sources. This process employs a weighted average price (WAP) model, factoring in pool depth, slippage tolerance, and cross-chain transfer costs.
The synthesized order book is periodically validated against on-chain state using a merkle root commitment, ensuring data integrity without constant on-chain queries.

Performance Optimization

To ensure scalability and efficiency, the Liquidity Aggregation Engine incorporates several advanced techniques:

Sharded Liquidity Indexing: Liquidity data is partitioned across shards based on chain and token pair, enabling parallel processing and reducing query latency as transaction volumes grow.Shards are maintained by a decentralized indexer network, with nodes incentivized through $ATX rewards for accurate and timely updates.
Precomputed Trade Paths: Frequently used trading routes (e.g., ETH-USDC across Ethereum and Arbitrum) are precomputed off-chain and cached in a distributed hash table (DHT). These paths are refreshed based on liquidity pool updates, minimizing real-time computation overhead.
Gas-Efficient Execution: Multi-swap transactions are batched into a single call using EVM’s multicall pattern or equivalent mechanisms on non-EVM chains, reducing gas costs and improving throughput.

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Last updated 3 months ago

Technical Architecture

The Liquidity Aggregation Engine operates as a distributed system that interfaces with liquidity sources on both EVM-compatible and non-EVM blockchains.

Liquidity Adapters

Chain-specific smart contract wrappers normalize liquidity data from heterogeneous DEX protocols. For EVM chains, these are written in Solidity, while non-EVM chains (e.g., Solana) utilize Rust-based modules compiled to WebAssembly (WASM).

Adapters implement a standardized interface, extracting real-time data on pool reserves, token pairs, and swap fees, which are then mapped to a universal schema.

Order Book Synthesis

An off-chain aggregator constructs a synthetic order book by combining liquidity data from all integrated sources. This process employs a weighted average price (WAP) model, factoring in pool depth, slippage tolerance, and cross-chain transfer costs.

The synthesized order book is periodically validated against on-chain state using a merkle root commitment, ensuring data integrity without constant on-chain queries.

Performance Optimization

To ensure scalability and efficiency, the Liquidity Aggregation Engine incorporates several advanced techniques:

Sharded Liquidity Indexing: Liquidity data is partitioned across shards based on chain and token pair, enabling parallel processing and reducing query latency as transaction volumes grow.Shards are maintained by a decentralized indexer network, with nodes incentivized through $ATX rewards for accurate and timely updates.

Precomputed Trade Paths: Frequently used trading routes (e.g., ETH-USDC across Ethereum and Arbitrum) are precomputed off-chain and cached in a distributed hash table (DHT). These paths are refreshed based on liquidity pool updates, minimizing real-time computation overhead.

Gas-Efficient Execution: Multi-swap transactions are batched into a single call using EVM’s multicall pattern or equivalent mechanisms on non-EVM chains, reducing gas costs and improving throughput.