FLUXLAYER: High-Performance Design for Cross-chain Fragmented Liquidity
FLUXLAYER: High-Performance Design for Cross-chain Fragmented Liquidity ArXiv ID: 2505.09423 “View on arXiv” Authors: 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. ...