📈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:

$$(997*x) / ((reserveIn * 1000) + (997 * x)) + x = (1000-x)/reserveIn$$

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