The Liquidity Router combines multiple transactions into one to perform more complex actions.
The router can combine two Liquidity Pools swaps to exchange jFIAT with jFIAT: the first swap between a jFIAT and its collateral and the second between the collateral and a jFIAT.
ExampleFor exchanging $10,000 of jEUR for jSGD, the router first swaps $10,000 of jEUR for 9,990 USDC (10 USDC of fee) using a USDC-jEUR pool and then swaps the 9,990 USDC for $9,980 of jSGD (9.99 USD of fee) using a USDC-jSGD pool.
Since the two swaps happen without price impact, the router enables a 0-price impact on-chain Forex market.
The router can combine Liquidity Pool swaps with AMM swaps to exchange jFIAT with any other asset and vice versa: the first between a jFIAT and its collateral without price impact and the second between the collateral and any other token.
ExampleFor buying $10,000 of WBTC with jBRL, the router first swaps $10,000 of jBRL for 9,980 USDC (20 USDC of fee) using the USDC-jBRL pool, then swaps the 9,980 USDC for ±$9,980 of WBTC (slippage and price impact occurs).
The router creates liquid jFIAT/TOKEN pairs without creating a jFIAT/TOKEN pool on the AMM.
Since the Liquidity Pool swaps happen without price impact, swaps between a jFIAT and another asset have the same price impact and slippage as swaps between their collateral and the same asset.
The router connects jFIATs to the entire on-chain liquidity of their collateral.
The router can combine a Wrapper wrap, or an unwrap with an on-chain Forex swap or cross-asset swap.
ExampleFor exchanging CADC to WBTC, the router first wraps CADC into jCAD using the CADC Wrapper, then swaps the jCAD for WBTC through a cross-asset swap.For exchanging XSGD for EURe, the router first wraps XSGD into jSGD, then swaps the jSGD for jEUR through an on-chain Forex swap, and finally unwraps the jEUR for EURe using the EURe Wrapper.
There are CADC-jCAD, XSGD-jSGD, or EURe-jEUR stable pools on Curve or Balancer. A cross-asset swap using these pools may offer a better route than a wrapper swap, depending on the slippage in the stable pools. The router can also use these pools.
The router can combine a Credit Line or money market loan with an on-chain Forex swap or cross-asset swap to open a leveraged long or short position on any jFIAT/TOKEN pair.
ExampleTo open a EUR/CAD leveraged long position, the router deposits jEUR as collateral into the Credit Line or a money market and borrows jCAD or CADC. Then the router performs an on-chain Forex swap or a wrapper swap to swap CADC or jCAD for jEUR. The router can then repeat the operation to increase the leverage.
The Paraswap router combines a Liquidity Pool swap with its off-chain liquidity aggregation engine to perform on-chain Forex swaps and cross-chain swaps with the best liquidity possible. Since Paraswap aggregates liquidity, it always offers better results than our purely on-chain cross-asset swaps.
The Stableswap router combines Paraswap, Liquidity Pools, Wrappers, and AMM swaps to exchange stablecoins with any other stablecoin at the absolute best prices, enabling a universal on-chain Forex market.