US-12626232-B2 - Fully collateralized automated market maker

Abstract

A computer-based system, method, and program product for providing liquidity for exchanges of digital assets ensure that an automated market maker program provides liquidity to support such an exchange. The system includes a blockchain network with multiple nodes. A node is be configured to execute an automated market maker (AMM) cryptographic system configured to receive collateral assets from other nodes, encapsulate the assets in a collateral pool, and mint a collateral token from the encapsulated assets. The token is configured to consolidate liquidity within a blockchain protocol for an exchange of a digital asset. A blockchain clearinghouse control system may be implemented upon the network to process the token and approve the exchange if performed/facilitated by/on the node or disapprove the exchange if performed separately from the node. Such a control system thereby ensures that the exchange is secure and that the AMM system provides liquidity to support the exchange.

Inventors

• Josh Williams
• Raymond A. Chiapuzio

Assignees

• FRONTAGE ROAD HOLDINGS, LLC

Dates

Publication Date

20260512

Application Date

20230616

Claims (7)

1. 1 . A non-transitory computer program product for providing liquidity for exchanges of digital assets, the non-transitory computer program product comprising a computer-readable medium with computer code instructions stored thereon, the computer code instructions being configured, when executed by a processor, to cause the processor to: encapsulate, via a packetizer, collateral assets, in a collateral pool three-dimensional (3D) array at a first node of a blockchain network, the collateral assets including collateral assets received from a second node of the blockchain network; encode, via an encoder, a collateral token from the collateral assets encapsulated in the collateral pool three-dimensional (3D) array, the collateral token configured to consolidate liquidity within a blockchain protocol for an exchange of a digital asset; execute a zero-knowledge proof (ZKP) attestation, the zero-knowledge proof (ZKP) attestation configured to use a non-interactive proof to verify minting of the collateral token by the first node of the blockchain network; and implement, upon the blockchain network, a blockchain transaction control embedded virtual machine (VM) executing on at least one cryptoprocessor of the first node, the blockchain transaction control embedded virtual machine (VM) configured to: perform a verification that the exchange of the digital asset is performed on or facilitated by the first node; and responsive to the verification and the zero-knowledge proof (ZKP) attestation, approve the exchange of the digital asset; or receive an indication that the exchange of the digital asset is performed separately from the first node; and responsive to the received indication, disapprove the exchange of the digital asset, thereby promoting functions of an automated market maker (AMM) cryptographic system to provide liquidity to support the exchange of the digital asset; the first node including a machine learning (ML) oracle module configured to: compute a computational value for the collateral token; and offer the collateral token for exchange at the computational value, thereby computing an exchange value of the collateral token.
2. 2 . The non-transitory computer program product of claim 1 , wherein the computer code instructions are further configured, when executed by the processor, to cause the processor to: configure the first node to measure supply of, and demand for, tokens among nodes of the blockchain network, the tokens including the collateral token.
3. 3 . The non-transitory computer program product of claim 1 , wherein the blockchain network provides a decentralized platform for the exchange of the digital asset.
4. 4 . The non-transitory computer program product of claim 1 , wherein the computer code instructions are further configured, when executed by the processor, to cause the processor to: provide continuous lack of friction and improved liquidity for the exchange of the digital asset by configuring the first node to iteratively mint collateral tokens from either a bounded or unbounded supply of collateral digital assets.
5. 5 . The non-transitory computer program product of claim 1 , wherein the digital asset comprises a non-fungible token (NFT).
6. 6 . The non-transitory computer program product of claim 1 , wherein encapsulating the collateral assets in the collateral pool three-dimensional (3D) array improves scalability and transaction processing time of the blockchain transaction control embedded virtual machine (VM).
7. 7 . The non-transitory computer program product of claim 1 , wherein the collateral assets include non-cryptographic digital assets.

Description

RELATED APPLICATIONS This application claims the benefit of U.S. Provisional Application No. 63/366,595, filed on Jun. 17, 2022. This application is related to U.S. application Ser. No. 18/336,679, titled “Multisignature Custody of Digital Assets”, filed on Jun. 16, 2023, which claims the benefit of U.S. Provisional Application No. 63/366,589, filed on Jun. 17, 2022, and U.S. application Ser. No. 18/336,924 titled “NFT Enforcement Control System”, filed on Jun. 16, 2023, which claims the benefit of U.S. Provisional Application No. 63/366,590, filed on Jun. 17, 2022. The entire teachings of the above applications are incorporated herein by reference. BACKGROUND A blockchain may be implemented as a peer-to-peer (P2P), electronic ledger that is implemented as a computer-based decentralized, distributed system made up of blocks, which, in turn, are made up of transactions. Each transaction may be a data structure that encodes a transfer of control of a digital asset between participants in the blockchain system, and that includes at least one input and at least one output. Each block may contain a hash of a previous block so that blocks become chained together to create a permanent, unalterable record of all transactions that have been written to the blockchain since its inception. Transactions may contain small programs, known as scripts, embedded into their inputs and outputs; the scripts may specify how and by whom the outputs of the transactions can be accessed. Blockchain may be used for implementation of “smart contracts” that can be associated with digital asset. These are computer programs designed to automate execution of terms of a machine-readable contract or agreement. Unlike a traditional contract, which would be written in natural language, a smart contract is a machine-executable program that may include rules for processing inputs to generate results; these results may then cause actions to be performed depending upon those results. With respect to commercial transactions, for example, these may involve a transfer of property rights and/or assets. An area of blockchain-related interest is the use of “tokens” to represent and transfer assets via the blockchain. A token serves as an identifier that allows an asset to be referenced from the blockchain. Fungible tokens are uniform. In other words, fungible tokens of the same type are identical in specification, and each fungible token is identical to another fungible token of the same type. Fungible tokens may be divisible into smaller amounts. Similar to currency, where bills can be divided into coins of an equivalent value, fungible tokens may be divisible. Non-fungible tokens (NFTs), however, cannot be replaced with other tokens of the same type. NFTs represent non-fungible assets. Non-fungible assets have unique information or attributes. Each NFT is unique and differs from other tokens of the same class, and, unlike a fungible token, NFTs typically cannot be divided. Blockchain gaming systems may use tokens or NFTs to create different parts of the game, such as rules, characters, weapons, and skins. Cryptocurrency wallets may be implemented to securely store and manage blockchain assets, tokens, NFTs, and cryptocurrencies. These wallets may allow users to spend, receive, and trade digital assets. SUMMARY Embodiments include a computer-based system for providing liquidity for exchanges of digital assets. In some embodiments, the system includes a blockchain network with multiple nodes. A node of the plurality of nodes may be configured to execute an automated market maker (AMM) cryptographic system. The automated market maker (AMM) cryptographic system may be configured to receive collateral digital assets, including non-fungible token (NFT) assets, from other nodes of the multiple nodes, encapsulate, e.g., via a packetizer, the received collateral digital assets in a collateral pool, and mint a collateral token from the received collateral digital assets encapsulated in the collateral pool. The collateral token may be configured to consolidate liquidity within a blockchain protocol for an exchange of a digital asset. The blockchain network may implement a blockchain clearinghouse control system configured to process the collateral token. In addition, the blockchain clearinghouse control system may be configured to approve the exchange of the digital asset if the exchange is performed on or facilitated by the node or disapprove the exchange of the digital asset if the exchange is performed separately from the node. Such a blockchain clearinghouse control system thereby ensures that the exchange is secure and that the automated market maker (AMM) cryptographic system provides liquidity to support the exchange of the digital asset. In an embodiment, the node may include a machine learning (ML) oracle configured to compute a computational value for the collateral token and distribute the collateral token for exchange at the computational value. Suc