MEV

Overview

Ramses uses permissioned engines designed to capture eligible MEV opportunities and retain the resulting value within the protocol. Allocation depends on the module described below.

MEV Solutions

Automated Market Operations (AMO)

Ramses' AMO system is designed to optimize protocol efficiency and maximize value for all participants through systematic arbitrage when the hyperRAM redeem floor triggers.

The AMO system executes a systematic arbitrage process:

1. Target liquidity pool identification
2. Application of the module's fee privileges
3. RAM → hyperRAM conversion
4. hyperRAM → xRAM redemption
5. Instant exit: xRAM → RAM
6. Allocation of the resulting value according to the rules below

The AMO bot targets market inefficiencies through the atomic conversion and allocation flow above.

Backrun Arbitrage

The backrun arbitrage bot is designed to capture eligible opportunities that would otherwise be available to external extractors. Its goal is to reduce loss-versus-rebalancing (LVR) and adverse selection for liquidity providers while retaining captured value within the protocol.

MEV Infrastructure

Ramses' current MEV infrastructure includes the live modules above. The roadmap expands that system across additional chains, venues, and protocols.

Planned Multi-Venue Arbitrage

Planned Privileged Atomic Execution

Dynamic Fee Integration

The MEV infrastructure works with Ramses' dynamic fee algorithm, which uses available market data to adjust fee levels in real time. This creates a feedback loop where:

1. Dynamic fees protect LPs during volatile periods
2. MEV bots capture arbitrage opportunities that would otherwise extract value from LPs
3. Arbitrage proceeds are allocated according to the active module
4. The protocol retains value that could otherwise leak to external extractors

Stopping Reverse JIT Liquidity

What Is Reverse JIT Liquidity?

Standard just-in-time (JIT) liquidity adds liquidity immediately before a known swap and removes it immediately afterward so the position participates in that swap. Ramses uses Reverse JIT Liquidity for the inverse behavior: a short-lived, tight one-tick position is removed just before an eligible swap, reducing exposure to the trade while seeking emissions during the intervals between swaps. This behavior may be shortened conversationally to "JIT," but it is specifically Reverse JIT in these docs.

How It Works

1. Short-Lived Tight Position: An LP adds liquidity in a narrow, one-tick range to concentrate emissions per unit of capital.
2. Pending-Swap Monitoring: The position operator monitors for an eligible incoming swap.
3. Pre-Swap Exit: The liquidity is removed immediately before that swap, so it does not support the trade or bear its inventory impact.
4. Between-Swap Emissions: The strategy seeks rewards for the periods in which the position was active and may repeat around later swaps.

This can disadvantage sustained LPs who remain available for execution and bear the inventory risk of actual trading.

Why DEXs Are Vulnerable

DEXs often fall prey to this exploit because:

• Instant Reward Streaming: Rewards are paid per second without mechanisms that require sustained liquidity.
• No Holding Period: LPs can withdraw instantly, avoiding losses from swaps.

Ramses tackles these issues head-on with targeted solutions.

Solutions

Ramses' solution targets Reverse JIT one-tick liquidity strategies by rewarding only LPs who provide sustained trade-supporting liquidity.