AquaGhost Protocol
Self-custodial MEV & JIT defense for LPs via Uniswap v4, 1inch Aqua, Chainlink CRE & The Graph
Demo
About
AquaGhost is a confidential, MEV-resistant liquidity defense engine designed to protect decentralized finance liquidity providers (LPs) from toxic flow and predatory Just-In-Time (JIT) fee-sniping. The Problem Passive LPs on concentrated-liquidity AMMs (like Uniswap v3/v4) consistently bleed yield to sandwich bots, arbitrageurs, and JIT attackers who front-run swaps, extract transaction fees, and immediately withdraw capital. While next-generation protocols like 1inch Aqua enable self-custodial liquidity provisioning, automated defense strategies traditionally fail on public blockchains: publishing stop-loss triggers, tick boundaries, and rebalance algorithms directly to the mempool allows MEV searchers to front-run the protection itself. The Solution AquaGhost resolves the transparency-versus-protection paradox by decoupling sensitive strategy evaluation from public execution: Confidential Strategy Isolation: Proprietary anti-sniping heuristics, customized LP risk thresholds, and private stop-loss levels execute inside a hardware-isolated Trusted Execution Environment (TEE). Public mempools never see the LP's private boundaries. Continuous Market Ingestion: An autonomous sentinel streams live pool depths, tick distributions, and historical volatility across multi-chain liquidity venues. Verifiable, Self-Custodial Execution: Once the enclave identifies an imminent sniper vector or volatility threshold breach, it signs a verifiable execution payload that instructs automated on-chain contracts to defensively pull, widen, or adjust liquidity ranges without depositing user funds into custodial third-party vaults.
How it's made
AquaGhost brings together hardware-enforced privacy, decentralized data indexing, and cutting-edge AMM primitives to form an autonomous defense loop: Architecture & Partner Technologies Chainlink Runtime Environment (CRE) & Confidential Workflows: The engine core is built as a CRE Workflow using handlerInTee in TypeScript. Sensitive risk parameters, private volatility thresholds, and authenticated off-chain CEX/DEX benchmark feeds execute exclusively inside a hardware-isolated TEE enclave. This ensures algorithmic alpha and stop-loss triggers cannot be inspected or front-run by block builders or MEV searchers. The Graph (Subgraph MCP & Standardized Subgraphs): The workflow continuously queries live on-chain AMM state—specifically tracking pool tick liquidity, fee growth global counters, and rapid borrow/swap volume changes across Uniswap and 1inch liquidity pools—to identify anomalous swap patterns indicative of JIT attacks. 1inch Aqua: Built as an autonomous Aqua App, enabling automated yield protection while strictly maintaining self-custody over the LP’s assets without relying on custodial balance transfers. Uniswap v4 Hooks: Implemented a custom reactive hook interface that parses cryptographic enclave attestations produced by the CRE workflow to dynamically alter pool fee tiers or lock swap interactions during detected predatory attacks.