Product
How it works (high-level)
A conceptual view of execution.
Mental model
Think of Aqua0 as bringing execution to liquidity, rather than moving liquidity into custodial pools.
At a high level:
- A user (or integrator) requests a swap (including cross-chain).
- Liquidity is represented virtually so it can be allocated across strategies.
- Execution happens locally on the destination chain, coordinated across chains when needed.
- Outcomes settle to users, while the system updates virtual accounting.
What "virtual liquidity" means (in plain English)
Virtual liquidity means:
- the protocol tracks allocations and balances as accounting entries
- the same capital can be assigned to multiple strategies (subject to constraints)
- risk is reduced versus traditional "pool custody" designs because users remain in control of funds