Lab Name

VeltoraCore AMM Lab.

Short Description

VeltoraCore is a system-agnostic, multi-pair optimization architecture that jointly optimizes execution and liquidity participation within a unified feasibility framework. Clearing prices and fee tiers are treated as endogenous decision variables to maximize executed volume and liquidity-provider surplus. A lightweight Proof-of-Optimization (PoO) mechanism cryptographically commits optimized batch outcomes to external system states, enabling verifiable cross-system settlement. Simulations on the ETH–USD pair show superior retained execution and materially lower user fees relative to benchmarks, while delivering liquidity-provider returns higher with reduced volatility. Gains stem from reallocating arbitrage surplus and coordinating execution beyond the limitations of prevailing sequential mechanisms.

Scope of Lab

The VeltoraCore AMM Lab operates as an applied research and incubation environment within LF Decentralized Trust. VeltoraCore addresses this coordination failure through a system-level execution architecture that jointly optimizes user execution and liquidity-provider participation within a unified feasibility framework. Clearing prices, fee tiers, execution quantities, and capital allocation are determined endogenously in each bin, allowing flexible unidirectional capital injection rather than price-constrained symmetric deposits.

The architecture supports capital-coupled optimization across asset pairs. A lightweight Proof-of-Optimization (PoO) mechanism binds optimized outcomes to externally observable state. Simulation results show improved retained execution, reduced capital requirements with lower volatility relative to sequential AMM baselines.

The lab explores and develops frameworks, reference models, and operational patterns that improve how open source projects are funded, governed, and maintained over time—particularly in frontier environments where traditional models are insufficient or unproven. This includes the design and validation of coordination mechanisms, contributor incentive structures, maintenance funding models, and governance approaches suited for decentralized and rapidly evolving systems.

Areas of focus include:

1. Optimization of Automated Market Makers, including liquidity providers (LPs) and users.

2. Mitigation of MEV (Maximum Extractable Value).

3. Operation Research, Fixed-Point theory for zero portfolio loss, endogenous pricing, FX rates and fees.

4. Capital efficiency with verification of execution and risk management.

Initial Committers

• @henrique-videira
• @begrossi
• @raijoma123

Sponsor

Pre-existing repository

https://github.com/VeltoraCore/veltoracore