We integrated EigenLayer's AVS ****infrastructure to retrieve tick liquidities for most active region around the current tick, and analyze liquidity distribution curves to calculate detailed pool metrics for Uniswap v4 pools. The system operates through a structured workflow involving three main components: the Service Manager, AVS Operators, and the on-chain Oracle Hook.
Service Manager
The Service Manager acts as the core coordinator between the Liquidity Oracle Hook and the AVS operators. It is triggered by the Hook Oracle and then creates tasks for the AVS Operators.
AVS Operators
AVS Operators are responsible for performing advanced statistical computations and curve analysis on liquidity data. They utilize various mathematical models to derive insights, such as spread, depth, liquidity transition, and volatility, using measures like Cosine Similarity, Wasserstein Distance, Hellinger Distance, and more. These computations are performed off-chain to optimize efficiency while maintaining accuracy.
On-Chain Oracle Hook
The Oracle Hook, through hook functions, continuously monitors liquidity conditions and price movements to determine when new computations are required. Once AVS Operators finalize their calculations, they sign and submit the results back to the Service Manager. The Service Manager then verifies and aggregates these responses before posting the final metrics on-chain to the Oracle Hook. The updated pool metrics are then made available for use by liquidity providers, market makers, and risk managers for real-time decision-making.
By leveraging EigenLayer’s AVS infrastructure, we ensure scalability, decentralized validation, and high computational efficiency, allowing for real-time, accurate, and trust-minimized liquidity analytics.
Liquidity in Uniswap pools is highly dynamic, yet there is a lack of real-time analytics to track its behavior effectively. Traditional tools provide fragmented insights, making it difficult for LPs, market makers, and risk managers to assess risks and optimize strategies.
Additionally, integrating liquidity data into other DeFi applications remains complex. A dedicated Liquidity Oracle bridges this gap by offering structured, accessible, and actionable insights.
Liquidity Oracle brings real-time liquidity analytics to Uniswap v4, addressing a major gap in on-chain data visibility. By leveraging EigenLayer’s AVS, it ensures secure, decentralized computation of complex liquidity metrics based on live pool conditions.
To support this, we developed a custom indexer that extracts and structures data from Uniswap swap and liquidity modification events on Unichain. This data powers a custom simulator that replays transactions sequentially, allowing us to observe how liquidity metrics evolve with real-world activity in real time.
This system empowers liquidity providers, market makers, and risk managers with deeper insights into volatility, liquidity distribution, and pool dynamics—enhancing their ability to assess risk, optimize strategies, and respond to market shifts. Ultimately, it improves transparency and efficiency across DeFi, strengthening use cases like lending, structured products, and algorithmic trading, and contributing to more resilient decentralized markets.
