📈Automated Liquidity Provision

Automated Liquidity Provision emphasizes the importance of allocating the entire loan amount to a user's preferred liquidity pool and simplify record-keeping.

  • Here, the protocol divides and allocates a loan amount to a user's preferred liquidity pool.

  • Ideally, there should be nothing left from the loan amount because it makes record-keeping complicated.

  • For example, if someone takes a $1000 loan and chooses the USDT/ ETH pool, the entire $1000 must be added as liquidity to this pool.

  • With this problem statement, we concluded that the following should provide us with what we seek: get_amount_out(x) = quote(1000 - x) [JediSwap functions]

  • Readjusting the equation to the standard form would give:

  • Read this article to understand how we came to this equation.

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