ERC 8080- Atomic-liquidity Booster

1

ERC: 8888
title: Atomic Liquidity Booster
description: A new ERC standard for atomic liquidity amplification across decentralized exchanges.

Abstract

The Atomic Liquidity Booster (ALB) introduces a mechanism that allows liquidity providers and protocols to atomically combine or split liquidity positions across multiple pools and decentralized exchanges in a single transaction. It enhances capital efficiency and reduces fragmentation across the DeFi ecosystem.

Motivation

DeFi protocols currently suffer from liquidity fragmentation and inefficiency due to isolated pools across different platforms. The ALB standard aims to enable smart contracts to move, merge, or amplify liquidity atomically, improving price stability and reducing slippage for traders.

Specification

Interfaces

interface IAtomicLiquidityBooster {
    function boostLiquidity(
        address tokenA,
        address tokenB,
        uint256 amountA,
        uint256 amountB,
        bytes calldata data
    ) external returns (bool);

    function reduceLiquidity(
        address tokenA,
        address tokenB,
        uint256 liquidity,
        bytes calldata data
    ) external returns (bool);
}

Methods

  • boostLiquidity combines liquidity positions atomically across multiple pools.
  • reduceLiquidity removes or redistributes liquidity positions atomically.

Events

event LiquidityBoosted(address indexed provider, address tokenA, address tokenB, uint256 amountA, uint256 amountB);
event LiquidityReduced(address indexed provider, address tokenA, address tokenB, uint256 liquidity);

Rationale

The ALB standard is designed to be modular, compatible with ERC-20, ERC-4626, and ERC-3156 standards. It focuses on improving the efficiency of liquidity provision and movement across multiple decentralized exchanges.

Example Use Case

A protocol can implement ALB to atomically move liquidity between Uniswap and Sushiswap, optimizing for best yield or price execution without requiring multiple transactions.

Security Considerations

  • Contracts must validate input data and pool compatibility.
  • Reentrancy and flash loan exploits should be mitigated using OpenZeppelin’s ReentrancyGuard or similar mechanisms.

Copyright

Copyright and related rights waived via CC0.