EigenLayer Research: Intelligent DeFi
DeFi + limitless trustless compute & data = Intelligent DeFi
EigenLayer's first piece on AVS Consumers: exploring the intersection of AVSs and finance onchain ↓
DeFi + limitless trustless compute & data = Intelligent DeFi
EigenLayer's first piece on AVS Consumers: exploring the intersection of AVSs and finance onchain ↓
Glue & coprocessor architectures: enabling a general-purpose glue (the EVM) to write business logic & call coprocessors for specialized computation
EigenLayer AVSs are coprocessors: handling tasks too expensive or impractical for the Ethereum finite state machine
EigenLayer AVSs are coprocessors: handling tasks too expensive or impractical for the Ethereum finite state machine
We previously explored Uni v4 hooks to discover: where can AVSs improve DeFi?
But that was only the beginning, let's explore more!blog.eigenlayer.xyz/univ4-hooks/
But that was only the beginning, let's explore more!blog.eigenlayer.xyz/univ4-hooks/
1. Auction to Redistribute MEV to AMM LPs
Problem: LPs lose money to arbitrageurs in the first swap every block.
Solution: Run a leaderless auction AVS to determine who gets the first swap through a pool in a block. Send auction proceeds to LPs > LPs give tighter spreads.
Problem: LPs lose money to arbitrageurs in the first swap every block.
Solution: Run a leaderless auction AVS to determine who gets the first swap through a pool in a block. Send auction proceeds to LPs > LPs give tighter spreads.
2. Advanced Margin System for Perp DEXs
Problem: Perp DEX margin systems are inflexible or centralized. Beta-neutral trading is hard.
Solution: Call a coprocessor AVS to run complex calculations or scenarios for margin factor. Give users more leverage, only liquidate as needed!
Problem: Perp DEX margin systems are inflexible or centralized. Beta-neutral trading is hard.
Solution: Call a coprocessor AVS to run complex calculations or scenarios for margin factor. Give users more leverage, only liquidate as needed!
3. Personalized Loans via Account History
Problem: Lending platforms give bad loan terms to low-risk borrowers.
Solution: Anti-sybil with an identity solution. Create onchain liquidity profiles and use a coprocessor AVS to assess liquidation risk and give collateral factors.
Problem: Lending platforms give bad loan terms to low-risk borrowers.
Solution: Anti-sybil with an identity solution. Create onchain liquidity profiles and use a coprocessor AVS to assess liquidation risk and give collateral factors.
4. Compliant Privacy Mixer
Problem: Tornado Cash enables money laundering and is OFAC-sanctioned.
Solution: Call a privacy layer AVS on deposits/withdrawals to only allow txns from compliant addresses - choose your own rules around OFAC-sanctions, hackers, and rate-limits.
Problem: Tornado Cash enables money laundering and is OFAC-sanctioned.
Solution: Call a privacy layer AVS on deposits/withdrawals to only allow txns from compliant addresses - choose your own rules around OFAC-sanctions, hackers, and rate-limits.
Check out all 10 ideas in more detail here:
Shoutout to @ishaan0x for authoring and all contributors and reviewers.
Want to build Intelligent DeFi or an AVS to enable better onchain finance? DM us and reach out to our Developer Relations team (@dabit3, @weswfloyd, @mattmurrs)!blog.eigenlayer.xyz/intelligent-de…
Shoutout to @ishaan0x for authoring and all contributors and reviewers.
Want to build Intelligent DeFi or an AVS to enable better onchain finance? DM us and reach out to our Developer Relations team (@dabit3, @weswfloyd, @mattmurrs)!blog.eigenlayer.xyz/intelligent-de…
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