Virtual Liquidation Process for GliderGPT AI Agents

• Purpose: GliderGPT AI uses virtual liquidation to simulate the potential outcomes of liquidating assets across different decentralized exchanges (DEXs). This process allows the AI to assess risks, optimize strategies, and manage portfolio health without actual execution.

• Workflow:

  1. Market Data Retrieval: GliderGPT AI aggregates real-time data, including token prices, liquidity metrics, and gas fees from multiple DEXs via APIs and blockchain oracles. Example: Uniswap, SushiSwap, PancakeSwap.

  2. Simulation of Liquidation Events:

     • Simulates sell orders using mathematical models of AMMs (e.g., constant product formula x⋅y=kx \cdot y = kx⋅y=k).

     • Estimates slippage, fees, and price impact for each transaction size.

  3. Stress Testing:

     • Simulations include adverse conditions such as extreme volatility, low liquidity, and high gas fees.

     • Multiple liquidation paths are explored, including partial liquidation for large portfolios.

  4. Outcome Evaluation:

     • Calculates metrics such as potential proceeds, slippage incurred, and overall portfolio impact.

     • Flags risky scenarios where liquidation may result in losses exceeding predefined thresholds.