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Routing Logic

The Routing Logic determines how capital is allocated across vaults. 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)
Post-deposit APYIndexer (impact simulation)
Available liquidityIndexer
User’s enabled vaultsPolicies
Current allocationSmart account state

Signal Generation

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

Execution

When a signal is generated:
  1. Router validates action against user’s policies
  2. Transaction is submitted to user’s smart account
  3. Smart account executes on-chain
  4. Rosetta sponsors gas costs