MEV Module

Overview

A set of advanced permissioned engines that capture and redistribute MEV value back to protocol participants, ensuring there is no value leak to outside extractors, bringing capital efficiency to the next level.

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. Fee privilege utilization for optimal execution
3. RAM → hyperRAM conversion
4. hyperRAM → xRAM redemption
5. Instant exit: xRAM → RAM
6. Profit distribution to hyperRAM

Market inefficiencies are captured by the AMO bot, ensuring value stays within RAM through systematic arbitrage and optimal execution.

Backrun Arbitrage

The backrun arbitrage bot has been live and actively protecting protocol participants while capturing value that would otherwise leak to external MEV extractors.

This value represents MEV that would have been extracted by outside arbitragers, but instead flows back to protocol participants. The bot protects liquidity providers from LVR (Loss-Versus-Rebalancing) and adverse costs from toxic MEV bots by frontrunning arbitrage opportunities and returning that value to users.

MEV Infrastructure

Ramses' MEV infrastructure represents a comprehensive arbitrage system designed to capture inefficiencies across chains, venues, and protocols—converting leaked value into sustainable revenue for the exchange and its participants.

Multi-Venue Arbitrage

Privileged Atomic Execution

Dynamic Fee Integration

The MEV infrastructure works seamlessly with Ramses' dynamic fee algorithm, which monitors both DEX and CEX volumes (including chain-native spot markets where available) to optimize 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 profits flow to the protocol and ultimately to xRAM holders
4. LPs are shielded from toxic flow while xRAM holders capture MEV value

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 and don't have proper mechanisms which 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.