📈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.
Last updated