Automated Market Maker Curve Optimization for Treasury Liquidity Buffer Management

Abstract

This paper investigates the application of Automated Market Maker (AMM) curve optimization to enterprise treasury liquidity buffer management, leveraging pre-2019 reserve-ratio models, bonding-curve dynamics, and constant-product invariants to create a programmable, continuously adaptive liquidity framework. By integrating AMM pricing with ERP-synchronized cash-flow events, the proposed model provides a mathematically grounded mechanism for stabilizing liquidity during reserve shocks, reducing slippage volatility, and improving buffer recovery times. Simulation results, including AMM curve deformation and a liquidity-slippage surface, demonstrate that properly tuned curve parameters and weighted-reserve partitions can significantly enhance treasury resilience while preserving deterministic, auditable behavior required in enterprise settings. The findings establish AMM-based liquidity controls as a viable foundation for next-generation digital treasury architectures operating within the technological landscape of 2018.