Liquidity provider utxo management

[remyers]

@murch

@remyers

• Does the concept of performing pre/post processing on the parameters of coin selection make sense or is there some way to optimize coin selection itself for this scenario?

I am not sure I understand which coin selection parameters you consider pre- and post-processing here. If you mean the min_change, I think that you might get limited leverage out of that. I expect that the feerate is foreign determined by the general mempool situation. You may consider creating P2WPKH and P2TR outputs depending on the current feerate and what sort of change outputs you are creating. If you are creating bucketed change outputs at low feerates, you may want to make P2TR outputs, while you might want to opt for P2WPKH non-bucketed change outputs when building transactions at high feerates. Are there other parameters that you were considering?

I only mean by pre/post processing that we are not monkeying with the internals of coin selection, but just the parameters passed in and adjusting the transaction returned.

I was only looking at min_change as a parameter for coin selection.

suggestion 3

Good idea to adjust which type of outputs we create based on the fee environment. This seems like an additional optimization we can adopt in addition to any other changes.