Smart Order Router
Last updated
Last updated
The Smart Order Router (SOR) is a core component of Mondrian Swap's technology stack, designed to optimize trade execution by finding the best possible prices for users.
For any given trade, the SOR determines the most efficient path, ensuring minimal slippage and maximizing output. This path optimization can range from a single direct swap to multi-hop transactions across multiple liquidity pools.
By dynamically routing orders, the SOR enhances capital efficiency, ensuring that liquidity is utilized effectively across the entire Mondrian Swap ecosystem.
As the number and diversity of pools on Mondrian Swap grow, the SOR becomes increasingly powerful in executing trades efficiently.
Without a Smart Order Router, increased pool variety can lead to liquidity fragmentation, causing higher slippage for traders. However, with the SOR, every trade benefits from access to the deepest available liquidity, reducing price impact.
✅ Optimal price execution for every trade. ✅ Access to fragmented liquidity across multiple pools. ✅ Improved trading conditions for low-liquidity altcoins. ✅ Multi-hop transactions to find the most efficient swap path.
Instead of executing a single swap, the SOR splits a trade into multiple steps across different liquidity pools to achieve a better overall price.
This ensures that every dollar in any of Mondrian Swap’s pools contributes to trade execution, as long as adding a hop reduces slippage and improves output.
The SOR’s optimization mechanism finds the best trading path across a set of Balancer-based liquidity pools, considering:
✔ Pool Depth – Prioritizing pools with the highest available liquidity. ✔ Slippage Reduction – Avoiding pools with significant price impact. ✔ Gas Cost Efficiency – Ensuring that multi-hop transactions remain cost-effective. ✔ Arbitrage Opportunities – Exploiting price differences across pools when possible.
By continuously scanning and rebalancing trade routes, the SOR enables users to get the best possible execution for their swaps—whether they’re swapping stablecoins, blue-chip assets, or low-liquidity altcoins.
