/papers

Contains various papers published by Catalyst

Catalyst Papers

This repository contains various papers released by the Catalyst protocol.

Asynchronous Autonomous Market Making via a Unit of Liquidity

By Alexander Lindgren, Jorge Sanmiguel. June 2023

Abstract

The Unit of Liquidity is a value abstraction which can facilitate direct asset-to-asset swaps both cross-chain and on-chain with the same liquidity. This is achieved without liquidity partitions increasing the amount of liquidity needed to serve large swaps or virtual liquidity increasing the market-making cost. The Unit of liquidity is not an intermediate token the user is exposed to or requires lock and mint bridges, it is the result of a computation based on customizable independent swap curves. It is shown that the Balancer invariant can be replicated in an asynchronous environment, while a flatter invariant can be fitted for stable-coin swaps.