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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:

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