SUClave

SUClave: A New AMM Design Using SUAVE and Uniswap V4 Arbitrage bots are doing MEV attacks through the Tap of Pool, aiming to be the first to access the liquidity pool. Being the first one that touches the pool gives an opportunity for MEV. While arbitrage is a common aspect of finance, the issue here is that Liquidity Providers (LPs) are missing out on potential profits. Essentially, these bots are earning profits using the funds provided by LPs, who are unable to capitalize on these opportunities themselves. For instance, consider a situation where the actual market price of ETH rises to $2000, but within the pool, it's still valued at $1000. In such cases, LPs could have profited by trading their ETH for USDC. However, it's the bots that are seizing these opportunities instead. Therefore, if there were a method to redistribute the profits made from arbitrage back to the LPs, it could effectively address this problem.

The origin of the story is rooted in finding a solution to the Loss vs. Rebalancing (LVR) problem, which emerged towards the end of 2022. We created a customizable AMM using Uniswap v4. For the Uniswap v4 hook, we worked on Solidity. In the realm of SUAVE scripts, there were sections where we utilized Go Lang.