Smart Order Router, or SOR, is an off-chain linear optimization of routing orders across pools for best price execution.

SOR provides a way to aggregate liquidity across all IguanaDEX pools.

Liquidity aggregators are free to use the SOR npm package or create their own order routing across pools.

Information about SOR on Balancer's documentation. IguanaDEX forked this feature of the Balancer Protocol (and many more): Read More

Overview Of Use And Example

There are two types of swap available:

swapExactIn - i.e. You want to swap exactly 1 ETH as input and SOR will calculate X amount of BAL you receive in return.
or
swapExactOut - i.e. You want to receive exactly 1 BAL and SOR will calculate X amount of ETH you must input.

The SOR will return totalReturn/totalInput as well as a list swaps to achieve the total. Swaps can be through direct pools, i.e. A > POOL1 > B, or via a multihop pool, i.e. A > POOL1 > C > POOL2 > B. The swaps are returned in a format that can be directly to the Vault to execute the trade.

The example file swapExample.ts in: ./testScripts, demonstrates full examples with comments.

To Run:

Create a .env file in root dir with your infura provider key: INFURA=your_key

Install dependencies: $ yarn install

Run example: $ TS_NODE_PROJECT='tsconfig.testing.json' ts-node ./test/testScripts/swapExample.ts

Environment Variables

Optional config values can be set in the .env file:

PRICE_ERROR_TOLERANCE - how close we expect prices after swap to be in SOR suggested paths. Defaults 0.00001.

INFINITESIMAL - Infinitesimal is an amount that's used to initialize swap amounts so they are not zero or the path's limit. Defaults 0.000001.

Example:

PRICE_ERROR_TOLERANCE=0.00001
INFINITESIMAL=0.000001

Note on Licensing

Except where indicated otherwise, the code in this repository is licensed GPLv3.