5. Liquidity Graph Model

Baltex Protocol represents liquidity access as a directed weighted multigraph. Vertices represent asset states on networks (optionally decorated with venue context), and edges represent executable transformations (DEX swap, CEX trade, provider swap, withdraw/transfer, relay).

Figure 2. Simplified liquidity graph taxonomy (illustrative).

Components

Component
Description

Venue State (Uniswap V3 Pool)

Liquidity venue providing the on-chain DEX swap context.

Asset State (PEPE@ETH)

Initial asset — PEPE held on the Ethereum network.

Asset State (USDC@ETH)

Intermediate asset after DEX swap — USDC on Ethereum.

CEX Market (USDC/PEPE)

Centralized exchange market used to trade USDC into the withdrawal path.

Relay Asset (RAND L1)

Private relay bridge asset on Monero L1 network, used for the off-exchange path.

Asset State (ZEC@ZEC)

Final output asset — ZEC on the Zcash network.


Execution Paths

Path 1 — DEX Route

Step
Action
Description

1

DEX_SWAP

Swap PEPE → USDC on Uniswap V3 (Ethereum).

2

CEX_TRADE

Trade USDC on a CEX market (USDT/ZEC pair).

3

WITHDRAW

Withdraw from CEX to destination as ZEC@ZEC.

Path 2 — Private Relay Route

Step
Action
Description

1

RELAY (private)

Route PEPE@ETH through a private L1 relay bridge.

2

OUTTAKE

Extract the bridged value as ZEC@ZEC on the Zcash network.


Notes

  • Both paths originate from PEPE@ETH and terminate at ZEC@ZEC.

  • The DEX route is the public, on-chain path with higher transparency.

  • The Relay route is a private, off-chain path optimized for privacy.

  • The Venue State (Uniswap V3) is only relevant for the DEX path.

5.1 Edge attributes (normalized)

Each edge is evaluated under constraints and costs, typically including:

  • limits: min/max amount supported

  • fee model: venue fees + network fees (estimated)

  • slippage model: for AMM edges (depth/price impact)

  • latency model: expected time-to-complete distribution (p50/p90/p99)

  • reliability score: historical success rate for the edge/venue

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