How market makers reprice before a witnessed swap

Before a cross-chain deposit is witnessed, market makers can already see it coming and revise orders for the likely swap. They monitor the source blockchain, estimate when the deposit will be ready, and use that lead time to compete for the trade on the destination protocol.

That window matters because a swap does not execute the moment you send funds. Validators first need to witness the deposit and register it on the protocol’s chain. On Chainflip, for example, market makers can track an incoming deposit while it awaits confirmation, then submit order updates before the swap executes. For the detail on estimating output after slippage, see the fuller chainflip explanation.

What can market makers see before a swap is witnessed?

They can see the deposit transaction on its source chain, but they do not yet have a completed trade to price with certainty. Instead, they estimate the likely input, route and execution time. Confirmation requirements create a lead time: the transaction is visible first, then validators witness it once the network’s conditions are met.

That estimate is useful, but it is not a guarantee. A deposit could take longer than expected, and market prices may move while it waits. The maker has to decide how much liquidity to offer and at what price while carrying that timing risk.

How do makers change their orders?

Makers use the lead time to adjust the orders that will compete to fill the swap. In a just-in-time automated market maker, they can update range orders, which provide liquidity across a price range, and place limit orders at specific prices. Their calculations may account for the expected trade size, prices on other markets and the assets they have available.

• Expected flow: the deposit amount and likely route indicate which pool or pools may be used.
• External prices: prices elsewhere help makers estimate a competitive quote and manage exposure.
• Available inventory: the assets already held in the protocol affect how much liquidity they can offer.

The trade-off is between quoting tightly enough to win the swap and leaving room for prices to move before execution. A quote that looks attractive when submitted can become less attractive if the market shifts.

What happens when validators witness the deposit?

Once the deposit reaches the witness threshold, the protocol registers it and executes the swap against available liquidity. The best executable orders fill first, and a single trade can consume several orders. If the route crosses multiple pools, its legs are processed in sequence.

For you, the key is that the visible deposit gives makers time to compete; it does not lock in a final price by itself. The executed result depends on the orders in place when the witnessed swap runs.