Execution Model

LibertyX operates through an intent-based swap system.

Instead of directly submitting a transaction to an AMM, a user signs an off-chain order describing the desired trade parameters. This signed order specifies the asset being sold, the asset being received, and acceptable pricing bounds.

The order is then broadcast to a network of independent executors. Each executor evaluates whether the order can be profitably fulfilled by combining liquidity sources, routing strategies, or internal inventory.

If an executor determines that the order can be filled within the specified parameters, the executor submits an on-chain transaction that completes the swap. In return for executing the trade, the executor captures any remaining routing surplus.

To ensure users always receive competitive pricing, orders may gradually adjust over time within the defined bounds. This mechanism allows other executors to step in if better execution becomes available.

Liquidity Routing

Executors participating in LibertyX may fulfill orders in several ways:

• routing through automated market makers

• combining liquidity across multiple protocols

• using privately held inventory

• executing multi-hop routing strategies

Because the execution layer is open and competitive, participants continuously search for the most efficient routing paths across available liquidity.

Price Improvement

By allowing swaps to access liquidity beyond a single protocol, LibertyX can produce execution prices that exceed what a user would receive from a direct AMM trade.

Advanced routing strategies may capture surplus value that would otherwise be extracted by MEV arbitrageurs. In LibertyX, this value can instead be shared with the user through improved swap outcomes.

MEV Mitigation

Execution responsibility is delegated to specialized executors. These participants may submit transactions through private relays, which helps reduce the likelihood of front-running or other adversarial transaction ordering strategies.

This architecture improves trade privacy while protecting swap outcomes from common forms of MEV exploitation.