Market Structure: Reduce Extreme Slippage With Batch Execution
JIL improved execution predictability using batch clearing and oracle bands with audit-grade batch receipts.
Benchmark-based analysis
Institutions buy execution integrity and a defensible clearing narrative.
Large swaps suffered from MEV/sandwich behavior and unpredictable execution.
- Reduced extreme slippage events (target KPI)
- Improved predictability with deterministic batch IDs
- Produced audit-friendly execution receipts
Why this problem persists
In standard AMM pools, large swaps are visible in the mempool before execution. MEV bots sandwich these trades - buying before and selling after - extracting value from the trader. The result: unpredictable execution and extreme slippage. In this scenario, the liquidity partner was routing institutional-sized orders through standard AMM pools and consistently experiencing adverse execution. MEV extraction was measurable and growing, and clients were losing confidence in execution quality.
The JIL approach
JIL's AMM v5 uses commit-reveal batch auctions with VRF-randomized ordering. Trades are committed (hidden), then revealed and executed in randomized batches. Oracle bands reject trades that deviate beyond expected price ranges. Every batch produces a deterministic receipt. The commit-reveal scheme prevents front-running by hiding trade details until the batch window closes. VRF-randomized ordering within each batch eliminates ordering manipulation. Oracle bands provide a price sanity check that rejects trades with extreme deviation, protecting against manipulation during volatile periods.
Every settlement event produces verifiable evidence
Before vs After
- Visible mempool orders
- MEV/sandwich attacks
- Unpredictable execution
- No execution audit trail
- Hidden commit-reveal
- VRF-randomized batches
- Oracle band protection
- Deterministic batch receipts
What Made the Difference
Commit-reveal scheme
hides trade intent until batch execution
VRF-randomized ordering
eliminates front-running opportunity
Oracle bands
reject trades with extreme price deviation
Batch receipts
audit-grade execution evidence for every batch
Deployment path
Expand oracle band integration to additional price feeds, deploy institutional RFQ venue alongside AMM, and integrate batch receipts with institutional reporting systems.
Benchmark-Based Modeled Impact: The "Modeled impact" estimates above are derived from public benchmarks and the control changes enabled by JIL Sovereign. Actual outcomes vary by corridor coverage, policy configuration, counterparties, and operating environment.