Smart Exit

Core Concept

Providing liquidity allows users to earn trading fees, but it also introduces a key challenge: deciding when to exit a position. Liquidity providers often define an exit plan in advance, such as exiting at a target price, after earning a certain amount of fees, or at a specific time. Manually executing this strategy can be challenging due to market volatility and the need for constant monitoring.

Smart Exit addresses this challenge by allowing users to predefine exit conditions and have their liquidity position exited automatically when those conditions are met. This approach allows users to execute an exit strategy for a position without continuously monitoring market conditions or manually timing transactions. This represents a first-of-its-kind approach in the current LP management landscape for automating liquidity exit decisions.

Technology and Its Components

Smart Exit adopts an intent-based execution model, where users declare exit conditions for a liquidity position instead of directly submitting an on-chain execution transaction. Rather than managing execution timing, gas fees, or transaction submission, users specify a set of conditions under which their liquidity should be exited.

These intent declarations are monitored off-chain for efficiency. When the specified conditions are satisfied, an execution transaction is generated and submitted for on-chain execution. At execution time, smart contracts validate that the transaction conforms to the user-defined intent before allowing the liquidity exit to proceed.

The system is trustless and verifiable. Although condition monitoring and transaction submission may involve off-chain components, all validation logic and execution constraints are enforced by public smart contracts. As a result, liquidity exits can only occur when the declared intent is satisfied, and execution behavior can be independently verified on-chain.

Smart Exit also supports gasless execution. Users are not required to hold native network tokens at the time of execution; instead, operators broadcast execution transactions on the user’s behalf. Despite this abstraction, execution and settlement remain fully on-chain and subject to smart contract validation.