JAM Intent-Based Auctions
The Whitepaper
Tl;dr
Bebop JAM is our new Just-in-time Aggregation Model:
This extends our liquidity aggregation mechanisms to find you the best prices from across all on-chain sources possible, for any token and any trade size.
JAM creates an inclusive market for independent solvers with advanced on-chain liquidity aggregation algos to compete in JAM auctions & deliver superior execution for every trade.
JAM also competes with our existing RFQ smart order router, optimizing both price & execution.
Introduction to Bebop JAM
Our new Just-in-Time Aggregation Model (or JAM) is an inclusive auction system for independent algorithms (Solvers) to compete for each user order.
Users submit their intent to trade by providing a signature with key trade parameters, such as the minimum amount of tokens to receive. JAM polls the solvers for the best execution outcome, taking into account two key parameters - the route that provides the highest amount of tokens received and the execution cost (i.e. network, or gas fees) involved.
Bebop's own solver delivers execution via smart order routing to professional market makers participates in these auctions as well and provides competitive pricing at superior execution cost, which is a hallmark of settling trades using private liquidity.
JAM Auction System
Quote auctions are powerful means of delivering the best quality pricing, however, where slippage is involved they may always deliver the best outcome for the user. For example, a trade that routes to AMM liquidity pools may suffer from slippage, whereas professional market maker liquidity always offers guaranteed pricing.
To deliver the ultimate best execution quality, we will be introducing a reputation model that incentivizes all actors to provide the most accurate prices, minimizing any negative slippage involved. Stay tuned for the updates.
Last updated