ToxicityLevel

The ToxicityLevel type is a custom data type, represented as a uint8, intended to classify the "toxicity" of a swap.

Purpose

In the context of liquidity provision, a "toxic" swap is typically one initiated by an informed trader who has knowledge that the current market price is incorrect. Providing liquidity to such a trade is risky and often results in losses for the liquidity provider (adverse selection).

The ToxicityLevel is designed to be a quantitative measure of this risk. While the current implementation is a placeholder, a future version could incorporate on-chain and off-chain data to calculate a toxicity score for each swap. This score would then be used by the JITHub to make more sophisticated decisions about when and how to provide JIT liquidity, potentially avoiding highly toxic trades.