Smart Routing

Asset Bridging

Axelar’s Interchain Token Service (ITS) and THORChain’s native swap infrastructure provide unparalleled flexibility in moving assets across chains.

Methodology:

• Automated Bridging: Axelar handles token bridging without manual intervention, while THORChain facilitates direct swaps for native assets.

• Cost Efficiency: Routing logic factors in bridging fees, wrapping/unwrapping costs (for Axelar), and direct swap costs (for THORChain).

• Expanded Compatibility: Ensures seamless interaction between EVM chains, non-EVM chains, and native assets on THORChain.

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Routing Process Workflow

1. Input Collection: User specifies source/target tokens, amounts, and slippage tolerance.

2. Liquidity Data Fetching: Fetches real-time data from DEXs (e.g., Uniswap, SushiSwap), Axelar, Squid Router, and THORChain.

3. Route Discovery: Identifies single-chain, multi-chain, and native routes across Axelar, Squid Router, and THORChain.

4. Cost Estimation: Ranks paths by total cost, slippage, execution speed, and native swap benefits.

5. Execution:

• For single-chain trades: Executes directly on the best DEX.

• For multi-chain trades: Leverages Axelar and Squid Router.

• For native asset swaps: Utilizes THORChain for deep liquidity and efficient execution.

Optimization Strategies:

• Precomputed Routes: Caches frequently traded paths involving both bridged and native assets for reduced latency.

• TWAP Monitoring: Detects price manipulations across Axelar, Squid Router, and THORChain liquidity pools.

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Why THORChain?

THORChain adds significant value to our infrastructure by enabling:

• Native Asset Support: Avoids the need for wrapped assets, providing direct access to native token liquidity.

• Deep Liquidity: Reduces slippage for high-value trades.

• Resilient Routing: Acts as an alternative to Axelar and Squid Router when native swaps offer better performance.