Become a Liquidity Provider with zero capital and zero LVR risk

The Idea: Flash Loan + JIT Liquidity

The thesis: Take a flash loan of a large amount of tokens just before a large trade is about to hit the chain such that you repay back that loan the moment that trade hits the chain. Basically, surround (sandwich) a trade with a flash loan to use that loan as a JIT liquidity provision for only that large trade transaction alone.

You:

1. Use that capital from a flash loan to provide JIT liquidity to a DEX (like Uniswap v3).
2. Capture fees from that large trade you sandwiched.
3. Immediately withdraw the liquidity post the trade.
4. Repay the flash loan within the same transaction.
5. Keep the fees (profit) — with zero upfront capital.

JIT liquidity reduces LVR (Loss Versus Rebalancing) by only providing liquidity during a specific trade, minimizing exposure to price volatility. Since the position isn’t left open over time, it avoids the impermanent loss (LVR) that traditional LPs face from price movements while their assets are locked for a significantly longer while.

The Execution

[Scenario] A bot sees a whale trade of $10M USDC → ETH about to hit Uniswap v3.

You keep monitoring all incoming transactions (public mempool, private ones if you have access).

• Just as you see the trade is about to happen.
• Take a flash loan of $10M USDC.
• Add that USDC to the liquidity pool just in the price range where the whale’s swap will go through.
• The trade executes, and you earn a chunk of trading fees.
• Instantly remove the liquidity.
• Pay Back the $10M flash loan in the same transaction.
• Keep the fees (~0.05% to 0.3% of 10M = 5K to $30K), with zero initial capital.

PROVIDED: You executed all the above steps atomically (i.e., within a single transaction).

The most powerful aspect of this transaction is that it’s zero risk: if the transaction fails, it’s fully reverted; there is no upfront capital required.

Now imagine that atomicity could be extended from a single transaction to multiple transactions in a single block, and then to even multiple transactions across blocks. That is what we are building at STXN (Smart Transactions), with our Time Capsules: multi-block bounded execution environments with full atomicity (rollback sans side effects) guarantees.

With STXN’s Time Capsules, you can do transactions that reverse on error or hacks as its all very atomic. You can even take flash loans across many blocks and from one chain to another.

Now imagine a chat-like interface where a crypto curious person just types: “Make me money, also I don’t have any capital.” Our super app figures out the rest, makes you money in no time, zero risk.