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FLUXLAYER: High-Performance Design for Cross-chain Fragmented Liquidity

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  • Xin Lao
  • Shiping Chen
  • Qin Wang

Abstract

Autonomous Market Makers (AMMs) rely on arbitrage to facilitate passive price updates. Liquidity fragmentation poses a complex challenge across different blockchain networks. This paper proposes FluxLayer, a solution to mitigate fragmented liquidity and capture the maximum extractable value (MEV) in a cross-chain environment. FluxLayer is a three-layer framework that integrates a settlement layer, an intent layer, and an under-collateralised leverage lending vault mechanism. Our evaluation demonstrates that FluxLayer can effectively enhance cross-chain MEV by capturing more arbitrage opportunities, reducing costs, and improving overall liquidity.

Suggested Citation

  • Xin Lao & Shiping Chen & Qin Wang, 2025. "FLUXLAYER: High-Performance Design for Cross-chain Fragmented Liquidity," Papers 2505.09423, arXiv.org.
    • Handle: RePEc:arx:papers:2505.09423
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