Comment on page
Overview of how PropellerSolver gets the best prices
Get the optimal route for any swap
Behind the API is, what we believe to be, DeFi's best routing algorithm and liquidity network. This is how PropellerSolver achieves the best prices:
- Large liquidity network: PropellerSolver integrates the widest range of liquidity sources. Not only DEXs but also off-chain liquidity, non-DEX routes (through stablecoins and staking protocols, and LP tokens, as well as RFQ and OTC trading desks;
- Smart routing: PropellerSolver runs mutliple highly optimized, and custom-developed routing algorithms in parallel to search for optimal routes.
- Combining orders & CoWs: Our routing algorithms also automatically combine orders (that overlap in either in- or out-tokens) between yours and other venues and solve coincidences of wants (CoWs) between orders from all order-flow sources;
- MEV-protected execution: PropellerRPC protects your trades additionally against frontruns by submitting trades to all major builders and validators, and monitors for fast and fair execution.
Finding the best route for a swap is hard and getting harder. Liquidity in DeFI is fragmented amongst a growing number of chains and exchanges making it hard for any user to decide where to swap. It's now near impossible, even for sophisticated users, to find and execute the exact combination of trades (the route) that gives the best price.
To provide the best routes, PropellerSolver continuously updates it's coverage of liquidity sources (the MarketGraph).
The MarketGraph keeps up with all liquidity. To keep the best prices new liquidity sources (e.g. DEXs) need to be added as they appear, as well as tokens, pools, and their state kept up to date with every block.
Our market graph includes block-by-block and mempool views on all liquidity pools from:
- All major DEXs;
- Stablecoin, staked tokens, lending, LP and other redeemable token pairs;
- Off-chain and cross-chain liquidity;
- Market makers;
- Outstanding orders from limit-order books, wallets and partners and OTC traders.
Routing is NP-hard. Algorithm design and continual improvement are core to find the best prices. PropellerSolver uses the following components to find the best possible route:
- Depth from speed: PropellerSolver has re-implementations in Rust for most DEX protocols. Speeding up simulation times one to two order of magnitudes, depending on the protocol - making it possible to simulate a much wider network of routes and find longer and more complex solutions.
- Custom algorithms: PropellerSolver solving algorithms are developed from scratch and maintained by our team based on external and internal research.
- Multiple algorithms: Different approaches might succeed at different times. PropellerSolver runs multiple algorithms in parallel and queries external solvers for their solutions.
- Combining algorithms: PropellerSolver also can combine multiple partial solutions from different algorithms into one route.
- Gas optimization: PropelleSolver also includes accurate gas simulations in it's search - and always returns the route that is the cheapest net of all gas fees.
Most aggregators only consider DEX routing, but one of the best sources for improving a trade are other trades: Every pending trade – all swaps in the mempool – can also help optimize your trade.
- Bundles orders: Combining multiple orders with overlapping in- and/or out-tokens into single split routes. This saves gas and lowers execution risk. And it improves the price, especially on small swaps.
- Finds coincidence of wants (CoWs): Matching opposite trades directly. This saves on swap fees (0.1–1% or more depending on the route) and gas fees (saving 90–95% compared to a routed trade).
- Supports advanced order types: PropellerSolver also simulates non-standard order types such as stop-limit, time-limited orders, or swaps triggered by other conditions.
By giving users the best price smart routing also protects them against leaving profits on the table in the form of MEV. MEV backrun opportunities only exist because transactions are not routed optimally. Optimally routed swaps have no backruns. Instead of making a loss, users gain from a better price.
Optimal routing is a complete substitute for order flow auctions in the case of swaps. Since backruns are less efficient than smart routing, smart routing provides better net prices to users and wallets.