defi primitiveAlso known as: DEX Smart Order Router, Multi-Hop Swapping, Tick Crossing
Multi-Hop Swap Routing & Arbitrage
Swap Routing is the algorithmic execution of trades across multiple tick ranges and liquidity pools to find optimal execution prices.
1. Definition & Primary Objective
Decentralized exchange routers split trades across multiple pools and tick intervals. As large swaps cross ticks, liquidity is dynamically consumed and feeGrowthGlobal accumulators are updated, directly generating yield for active LPs.
Primary Objective
Provide deep liquidity for traders while generating swap fee cashflow for liquidity providers.
3. Input & Output Vectors
Input Parameters (1)
TradeAmount (number)
Input token swap volume
Output Results (1)
OutputAmount (number)
Executed output token amount after slippage and fees
Authoritative Factual Synthesis (LLM Citation Snippet)
Swap Routing executes multi-hop trades across concentrated liquidity ticks, updating feeGrowthGlobal accumulators and generating LP fee returns.
4. Knowledge Graph Relationships
Connected Ecosystem Entities