Multi‑Maker Routing

Optimal Liquidity Aggregation Framework

Multi-maker routing represents a sophisticated approach to trade execution that enables single swap intents to utilize multiple liquidity sources simultaneously, optimizing pricing and reducing slippage through intelligent order distribution and coordination.

This approach transforms the traditional single-source execution model into a comprehensive optimization problem that considers multiple competing objectives: total execution cost, slippage minimization, execution speed, and liquidity source reliability.

Advanced Routing Algorithm Implementation

Multi-Objective Optimization Process:

1. Order Book Aggregation → Merge CPMM/CLMM curves into unified depth-by-price mapping
2. Greedy Price Optimization → Select most cost-effective liquidity tranches within slippage constraints  
3. PSBT Partitioning → Allocate distinct input/output sets per contributing maker
4. Signature Coordination → Collect partial signatures from each participating liquidity source
5. Atomic Settlement → Execute complete trade or revert all components

Routing Benefits and Performance

Execution Quality Improvements:

• Enhanced Liquidity Depth: Combined capacity from multiple independent sources providing superior fill rates

• Improved Pricing: Optimal slice selection across sources minimizing total slippage and execution costs

• Increased Resilience: Continued operation despite individual maker unavailability or temporary liquidity constraints

• Reduced Market Impact: Distribution of large trades across multiple sources reducing individual source price impact

Practical Routing Example

Trade Scenario: 5 BTC → RUNES conversion with multi-maker optimization

Maker Source	Price (RUNES/BTC)	Fill Allocation	Percentage	Contribution
Maker A	120	2 BTC	40%	Lowest cost tier
Maker B	121	1.5 BTC	30%	Secondary pricing tier
Maker C	122	1.5 BTC	30%	Completion tier

Execution Results: Effective average price of 120.9 RUNES/BTC versus 122 RUNES/BTC from single highest-cost source, demonstrating quantifiable execution improvement through routing optimization.

Risk Management and Safeguards

Comprehensive Protection Mechanisms:

• Slippage Envelope Enforcement: PSBT invalidation if combined execution rate exceeds user-specified tolerance levels

• Timeout Management: Systematic removal of non-responsive makers with automatic route recalculation

• Fee Optimization Analysis: Cost-benefit evaluation for additional input inclusion versus execution improvement

• Execution Monitoring: Real-time tracking of individual maker performance and reliability metrics

Operational Reliability:

• Failover Protocols: Automatic route adjustment when primary sources become unavailable

• Quality Scoring: Historical performance tracking influencing future routing decisions

• Latency Optimization: Preference for consistently responsive liquidity sources

• Capacity Management: Dynamic adjustment based on available liquidity depth and source capacity