A study of liquidity cross-chain models based on convex optimization

Abstract

Abstract Blockchain after several years of hustle, bustle, precipitation, and sublimation, with the landing application step by step towards maturity and development, gradually spawned the outreach needs of interacting with other applications. At this stage, only the mobility cross-chain interoperability technology is the infrastructure system that can perfectly solve such needs. To achieve a cross-chain system that defines and realizes user-free liquidity interoperability according to the cross-chain environment and cross-chain requirements, this paper designs a convex optimization-based liquidity contract pair cross-chain model. This model can realize a uniform distributed NFT ID construction identification method for the whole chain, and at the same time use the convex optimization model to obtain liquidity contract pairs that have and only have the global optimal matching, and in this way lock the shortest cross-chain time required, with AMM bonding curve management to achieve immediate liquidity effect, and realize the interconnection and interoperability of users’ assets with free liquidity. Finally, the time-consumption, robustness, and radius of convergence of the models are tested by comparing the model experiments and the proposed model’s proposed cross-chain incentive experiments yield results that verify that the proposed convex optimization-based liquidity contract is efficient, applicable, and secure for cross-chain models.

Keywords

• Blockchain
• Convex optimization
• Liquidity cross-chain
• Contract pairs