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We provide a new method for treating free boundary problems in perfect fluids, and prove local-in-time well-posedness in Sobolev spaces for the free-surface incompressible 3D Euler equations with or without surface tension for arbitrary initial data, and without any irrotationality assumption on the fluid. This is a free boundary problem for the motion of an incompressible perfect liquid in vacuum, wherein the motion of the fluid interacts with the motion of the free-surface at highest-order.
Coutand et al. (Mon,) studied this question.