Liquidity Layers

Lex operates on a prioritized multi-layered liquidity framework to maximize efficiency and scalability.

Coincidence of wants leverages natural liquidity movements between chains.

Example:

Scenario: A solver operating on Polygon and Solana has $170,000 on Solana and $30,000 on Polygon. A market maker has excess liquidity on Polygon and needs liquidity on Solana.
Solution: Lex matches these liquidity needs, enabling direct on-chain transfers without bridging, utilizing Solana’s SVM for low-latency execution.

This layer handles simple and complex matching scenarios, including multi-asset swaps and multi-party transactions.

Micro liquidity pools provide dynamically rebalanced liquidity across chains.

Capital Efficiency: Pools are highly optimized, focusing on stablecoins and native chain assets (e.g., SOL, ETH, MATIC).
Automated Rebalancing: Lex manages pool rebalancing periodically, ensuring high liquidity utilization and minimal latency.
Use Case: A solver supplies liquidity on one chain and accesses the same amount on another chain in seconds to fulfil an intent.

Lex integrates with existing solver networks and protocols to provide additional liquidity options.

Auction Mechanism: Intent auctions allow external solvers to bid, ensuring optimal liquidity and output.
Collaboration: Enables external solvers, bridges, and intent protocols to participate without relying on Lex’s native pools.

Compass, the flagship product of Blockend, acts as a liquidity aggregator.

Aggregated Liquidity: Sources liquidity from DEXs, bridges, RFQ providers, and intent protocols.
Fallback Mechanism: If internal layers cannot fulfill an intent, Compass ensures execution through its broad liquidity network.

Intent Submission: A user or protocol submits a cross-chain liquidity intent.
Auction Process: Lex’s SVM layer initiates an auction across its four liquidity layers.
Execution: The most efficient liquidity source is selected, ensuring optimal output and speed.
Rebalancing: Post-transaction, Lex rebalances liquidity across chains to maintain efficiency.
Settlement: Settlement data from multiple transactions is efficiently compressed and securely posted to the Solana Mainnet, ensuring transparency and composability.

Last updated 1 month ago