Just-In-Time (JIT) Liquidity
A strategy where a liquidity provider adds concentrated liquidity to a pool immediately before a large trade executes, then removes it right after.
Just-In-Time (JIT) liquidity is a strategy where a sophisticated liquidity provider adds a large amount of concentrated liquidity (see Kaavon's "Concentrated Liquidity" glossary definition) to a pool immediately before a specific large trade executes, captures the trading fee from that one trade, then removes the liquidity again right afterward.
JIT liquidity is a documented, MEV-adjacent strategy that can reduce the fee revenue ordinary, longer-term liquidity providers in the same pool actually earn, since the JIT provider captures a disproportionate share of a large trade's fee without bearing the pool's ordinary, ongoing price risk.
Examples
- A JIT liquidity provider adds concentrated liquidity moments before a large trade, captures its fee, then withdraws immediately afterward.
- JIT liquidity can reduce the fee revenue ordinary, longer-term liquidity providers earn, since it captures a large trade's fee without sharing the pool's ongoing price risk.