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Routing Logic

The Routing Logic determines how capital is allocated across vaults and lending markets. It answers: given the user’s policies and current market conditions, where should funds be?

Decision Inputs

The Router evaluates:
InputSource
Current APY per vaultIndexer (block-level)
Current APY per Aave marketIndexer (block-level)
Post-deposit APYIndexer (impact simulation)
Available liquidityIndexer
User’s enabled vaults and protocolsPolicies
Current allocationSmart account state
Chain contextSelected chain (HyperEVM or Base)

Signal Generation

Based on these inputs, the Router generates allocation signals:
  • Deposit signal: Which vault or market should receive new deposits
  • Rebalance signal: Whether current allocation should shift to a different vault or protocol
  • Hold signal: Current allocation remains optimal
Signals are generated only when improvement exceeds minimum thresholds. The Router does not rebalance for marginal gains.

Cross-Protocol Evaluation

The Router compares yields across protocol boundaries. An Aave supply market yielding 6% will be preferred over a Morpho vault yielding 5%, assuming both are enabled in user policies. The Router treats all enabled destinations as a single opportunity set.

Execution

When a signal is generated:
  1. Router validates action against user’s policies
  2. Transaction is submitted to user’s smart account on the appropriate chain
  3. Smart account executes on-chain (Morpho vault deposit or Aave supply)
  4. Rosetta sponsors gas costs