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How Does ‘Just-in-Time’ (JIT) Liquidity Provision Affect Slippage?

JIT liquidity provision involves a specialized actor adding a large amount of liquidity to a DEX pool immediately before a large trade executes, and then removing it right after. This temporary deep liquidity minimizes slippage for the large trade.

While beneficial for the trader, it is often associated with Maximum Extractable Value (MEV) strategies and can centralize liquidity provision.

What Is a “Just-in-Time” (JIT) Liquidity Attack and How Does It Exploit Slippage?
What Is “Just-in-Time” (JIT) Liquidity and How Does It Relate to Sandwich Attacks?
What Is a “Just-in-Time” (JIT) Liquidity Attack and How Does It Exploit the AMM Structure?
Can a “Just-in-Time” (JIT) Liquidity Provision Strategy Mitigate Arbitrage-Driven Impermanent Loss?