🏠What is VirtuSwap?

Introduction

VirtuSwap is on a mission to make DEXes dominate the crypto trading landscape, by enabling efficient, cheap, trades; while increasing yields to liquidity providers. A combination of financial engineering, state-of-the-art research, and proprietary AI agents achieves this.

VirtuSwap aims to reduce inefficiencies in trading and liquidity provision. Utilizing cutting-edge financial engineering, VirtuSwap eliminates costly trades involving 99% of assets, that suffer from insufficient liquidity, by implementing two main features.

🔸 Firstly, implementing “Reserve Powered Pools”, a new pool architecture that enables liquidity pools to accept non-native tokens for a limited scope, thus eliminating inefficiencies and costs associated with indirect trades that affect 99% of crypto assets; while lowering typical pool imbalances, which means lower gains to arbitrageurs and MEV bots. This results in higher net expected returns for LPs, larger equilibrium pool sizes, lowering trading costs further - in what we call the “Virtuous Circle”.

🔸 The second component of our technology aimed at boosting the efficiency of DEX trading is our proprietary AI Optimizer system called Minerva, which constantly analyzes trading activity to suggest the best incentive structure for liquidity pools to maximize an objective function, such as trading volume, pool fees, or any linear combination therein. Based on our research, implementing the combination of revolutionary financial engineering and AI-based liquidity allocation optimization can result in an up to 5X increase in yields for liquidity providers.

Minerva AI agent consists of the following two modules, which together comprise the rewards distribution AI agent: the trade distribution predictive module and the rewards optimization module. Trade distribution predictive module The predictive module of Minerva takes all past trades in all pools on a given blockchain over a given period, all past liquidity provision and withdrawal events — and uses an AI-based predictive model to arrive at the expected distributions of trades in all asset pairs over the next period. Rewards optimization module The optimization module aims to maximize a linear combination of LP's expected returns, subtracting expected impermanent loss, the total trading volume on VirtuSwap, and the inverse of average trading costs on VirtuSwap.

🔶 VirtuSwap achieves a result that was seemingly impossible before — it reduces costs for traders. It increases the LP returns at the same time, by breaking the link between liquidity traders’ costs and arbitrageurs’ profits!

The features above are only the beginning of our effort to make DEX trading as efficient as possible, and additional features are already being developed.

Useful Links

• Website: http://virtuswap.io/

• White Paper: https://virtuswap.io/white-paper

• Tokenomics White Paper: https://virtuswap.io/docs/Tokenomics-VirtuSwap-Sep-13-2023.pdf

• Medium: https://medium.com/@virtuswap

• Twitter: https://twitter.com/VirtuSwap

• Telegram: https://t.me/official_virtuswap

• Discord: https://discord.gg/virtuswap

• Github: https://github.com/Virtuswap