ParaSwap Launch Today: Optimized Routing For Lower Slippage is an update to the aggregator's execution layer that reduces price impact by intelligently splitting trades across liquidity sources and routes. In short: the new routing algorithm finds deeper, cheaper paths so you get better fills with lower slippage and often lower gas costs.

ParaSwap Launch Today: Optimized Routing For Lower Slippage — quick summary

This launch replaces or augments previous route-finding logic with a more granular, multi-source optimizer. It evaluates decentralized exchanges, on-chain liquidity pools, and cross-protocol paths to build composite trades. The result: users experience smaller price deviation between expected and executed price and improved trade reliability for medium-to-large orders.

What the update changes (short list)

• Multi-split routing: Trades can be split across several pools simultaneously.
• Dynamic path evaluation: Real-time price and liquidity checks produce fewer failed swaps.
• Cost-aware decisions: Balances gas vs. price impact to optimize overall execution cost.

Why optimized routing lowers slippage (explanation + example)

Slippage is the difference between the quoted price and the final execution price. Traditional single-route swaps pull liquidity from one pool and can move the market if the trade is large relative to pool depth. Optimized routing addresses this by:

• Identifying multiple partial-liquidity sources across AMMs (Automated Market Makers) and DEXs.
• Splitting a large order into smaller chunks and sending them to the best-performing pools.
• Considering gas cost so splitting doesn’t increase total cost disproportionately.

Example: swapping 100 ETH-worth of Token A to Token B. A single pool might show a 2% price impact for the full size. Optimized routing can split the order into 3-5 legs across different pools, reducing aggregate impact to 0.6–1% while keeping gas overhead reasonable.

Actionable takeaway: For trades above typical retail size, prefer aggregators with multi-split routing to minimize slippage.

How the new routing works (framework + technical notes)

The optimizer follows a compact decision framework:

1. Source discovery: Gather orderbooks, AMM curves, and pool reserves from integrated DEXs.
2. Path scoring: Score candidate routes on price, available liquidity, and execution reliability.
3. Split optimization: Use a solver to determine how to split the order to minimize a combined cost metric (price impact + gas).
4. Execution & fallback: Execute legs concurrently when safe and include fallbacks for slippage or revert situations.