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MODULUS

Modular observability for on-chain liquidity dynamics.

Modulus measures how on-chain systems behave under state change. It is a modular observability framework that captures, compares, and describes real-time dynamics of on-chain liquidity systems without prediction, scoring, or persistence.


πŸ” What Modulus Does

At each observation tick, Modulus:

  1. Fetches live on-chain state from supported chains and venues.
  2. Computes deterministic liquidity metrics.
  3. Compares the current state against the previous observation.
  4. Emits raw metric values and short human-readable annotations.

All behavior is derived directly from on-chain data. There are no synthetic baselines or interpretation layers in v0.

πŸ“Š Core Metrics (v0)

Metric Description
Liquidity Depth Total available liquidity near the active price.
Liquidity Elasticity The response of liquidity to price movement between observations.
Liquidity Fragmentation The degree to which liquidity is distributed across discrete ranges.
Liquidity Degradation Qualitative system regimes derived from structural changes (e.g., STABLE or STRESSED).

πŸ›  Architecture & Design

Modulus processes data through live chains, chain adapters, a metrics engine, an integration runtime with ephemeral state, and a read-only dashboard.

Design Properties

  • No Persistence: v0 has no long-term storage and does not perform historical backfilling.
  • Ephemeral Annotations: Descriptions are derived only from consecutive observations and are discarded on process restart.
  • Passive Monitoring: The dashboard is strictly read-only; Modulus does not generate alerts or forecasts.

Supported Networks (v0)

  • Arbitrum (Uniswap v3)
  • Optimism (Uniswap v3)

πŸ“¦ Scope

Included in v0 Excluded (Future)
Live on-chain ingestion Persistent storage
Deterministic computation Event replay
Consecutive-state comparison Alerting & Forecasting
Dashboard User-defined thresholds

πŸš€ Status: v0 Complete

Modulus v0 provides a truthful, real-time view of on-chain system dynamics. It establishes a clean foundation for future versions that will introduce memory, event comparison, and long-horizon analysis.


⌨️ Future Work

Future versions may add persistent state storage and historical regime analysis.

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Modulus measures how on-chain systems behave under state change.

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