Hierarchy Unified Liquidity Network

Liquidity Pool Mining and Evaluation

Liqua uses AI to discover, analyze, classify, and rate liquidity pools across connected chains. This creates a decentralized liquidity network, combining fragmented pools into a unified virtual pool that provides a comprehensive view of available liquidity.

Liquidity Pool Mining

The liquidity pool mining module identifies new potential liquidity pools that Liqua can use and allocate. It achieves this by real-time monitoring of the latest blocks and transaction data on the blockchain, filtering out all transactions that include contract addresses, as liquidity pools typically exist in the form of on-chain financial contracts. If a contract address appears for the first time, it is added to the contract address database. The module then scans the contract address database for analysis, extracting transaction lists including contract tags, transfer details, and contract functions. By utilizing deep learning and knowledge graph technologies, it extracts features and obtains key parameters of the liquidity pool, such as the amount of funds and transaction volume. These parameters are then compared and matched with the liquidity pool classification feature database to determine the category of the liquidity pool.

Liquidity Pool Evaluation

The liquidity pool analysis and evaluation process assesses candidate liquidity pools based on multiple dimensions and factors. These include operational duration, total value locked (TVL), number of transactions, transaction volume, number of users, and transaction count and volume over the past month. These metrics are used to evaluate whether the liquidity pool is operating normally, its stability, and its security. Based on this assessment, the protocol determines whether the liquidity pool can be officially included as a usable liquidity pool within the protocol.

Unified Virtual Pool

After mining and evaluating each connected blockchain, the protocol gains a global view of the available liquidity pools on each chain. The next step involves progressively integrating these fragmented liquidity pools. Initially, a unified pool is formed within each chain, providing more optimized options and support for the protocol's cross-chain liquidity allocation algorithm. The second level of integration combines liquidity across all chains into a unified virtual pool, creating a comprehensive view of assets across the entire network and enabling efficient global asset allocation.For example, in the case of USDT cross-chain transactions between Ethereum and Polygon, the capacity of the USDT unified pool on Ethereum defines the maximum amount of USDT cross-chain requests that can be received from Polygon. Similarly, the capacity of the USDT unified pool on Polygon defines the maximum amount of USDT cross-chain requests that can be received from Ethereum. The capacity of the USDT unified virtual pool, from a global perspective, determines the maximum depth of USDT available for cross-chain transactions across the entire network. If a liquidity pool on a specific chain experiences a shortage or reaches a warning level, the protocol can address this by transferring liquidity from chains with excess (locking/burning on the source chain and releasing/minting on the target chain) or by attracting liquidity providers (LPs) to deposit directly, thereby increasing effective supply.