Open Liquidity Marketplace (OLM)
Introduction
The Open Liquidity Marketplace (OLM) is a protocol that enables off-chain agents to compete for executing user intents such as swaps and transfers across networks.
Traditional aggregators struggle to keep pace with the explosion of new chains and primitives. OLM solves this by creating an open marketplace where off-chain agents are incentivized to rapidly integrate new liquidity sources, while user funds remain secure through onchain smart contracts.
For a complete understanding of OLM, read the OLM Litepaper.
How It Works
OLM facilitates order fulfillment in three simple steps:
- User Signs Order: User defines their tokens, chains, and preferences (price, speed, security)
- Auction: Off-chain agents bid to fulfill the order based on user preferences
- Order Execution: The winning agent executes the order onchain
See the Request Lifecycle for details on how Bungee Auto works in detail.
Marketplace Participants
Three types of agents compete to fulfill orders:
Fillers: Market makers using their active inventory onchain. They receive user funds into an escrow system until the order is fulfilled or expires.
Solvers: Routing specialists who stake collateral but don't need active capital. They can optimize routes through any combination of DEXs and bridges.
Provers: Entities that leverage integrated proof systems like Circle or OP Interop. These provide high-trust guarantees without requiring capital.
See Bungee Auto Architecture for details on how these participants function in Bungee Auto.
Key Benefits
Better Swaps: OLM excels at token swaps across networks without the usual multi-step process or MEV leakage.
User Choice: Select trust preferences - prioritize speed for small amounts or security for larger transfers.
Improved UX: Pay gas in the token you're swapping, never pay for failed transactions, and enjoy instant transfers with pre-confirmations.
MEV Protection: Value that would otherwise go to validators is returned to users.
Get Involved
Want to be part of the OLM ecosystem? We're looking for fillers, solvers, and provers to help power the next generation of swaps and transfers.
Fill out our interest form and we'll get in touch with you.