EigenLayer Research: Intelligent DeFi
DeFi + limitless trustless compute & data = Intelligent DeFi
EigenLayer's first piece on AVS Consumers: exploring the intersection of AVSs and finance onchain ↓
Glue & coprocessor architectures: enabling a general-purpose glue (the EVM) to write business logic & call coprocessors for specialized computation
EigenLayer AVSs are coprocessors: handling tasks too expensive or impractical for the Ethereum finite state machine
We previously explored Uni v4 hooks to discover: where can AVSs improve DeFi?
But that was only the beginning, let's explore more!
1. Auction to Redistribute MEV to AMM LPs
Problem: LPs lose money to arbitrageurs in the first swap every block.
Solution: Run a leaderless auction AVS to determine who gets the first swap through a pool in a block. Send auction proceeds to LPs > LPs give tighter spreads.
2. Advanced Margin System for Perp DEXs
Problem: Perp DEX margin systems are inflexible or centralized. Beta-neutral trading is hard.
Solution: Call a coprocessor AVS to run complex calculations or scenarios for margin factor. Give users more leverage, only liquidate as needed!
3. Personalized Loans via Account History
Problem: Lending platforms give bad loan terms to low-risk borrowers.
Solution: Anti-sybil with an identity solution. Create onchain liquidity profiles and use a coprocessor AVS to assess liquidation risk and give collateral factors.
4. Compliant Privacy Mixer
Problem: Tornado Cash enables money laundering and is OFAC-sanctioned.
Solution: Call a privacy layer AVS on deposits/withdrawals to only allow txns from compliant addresses - choose your own rules around OFAC-sanctions, hackers, and rate-limits.
Check out all 10 ideas in more detail here:
Shoutout to
Want to build Intelligent DeFi or an AVS to enable better onchain finance? DM us and reach out to our Developer Relations team (