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Breakpoint 2023: The Metis Routing Algorithm
Innovations in swap aggregator platforms with Metis Routing Algorithm for optimal cryptocurrency trade routes.
In a detailed presentation at Breakpoint 2023, Melvin and his colleague, who are part of the Raccoons team behind the platform Jibberter, introduce the Metis Routing Algorithm, a solution devised to optimize the route for cryptocurrency trades. They discuss the evolution of swap aggregator platforms, the challenges faced in optimizing trade routes, and how the Metis Routing Algorithm aims to solve these by providing the best trade prices with its innovative approach. This advancement in technology is significant for users of digital currency exchanges seeking to maximize the value of their trades.
Introduction to the Metis Routing Algorithm
Melvin, a research engineer from the Raccoons team, starts by introducing the capabilities of Jibberter, a swap aggregator platform that computes optimal trading routes for users wanting to exchange cryptocurrencies. The primary focus of their project is to ensure the best price for users during trade execution. They outline how Jibberter has operated since its launch in late 2021, highlighting its success with $35 billion in volume, 96 million transactions, and over 910,000 wallet integrations.
Evolution of Trade Routing on Jibberter
The team illustrates how they have gradually developed Jibberter's routing feature from comparing direct routes and simple hops between tokens, to integrating more decentralized exchanges (DEXs) and thus creating more route permutations. They explain that to manage increased complexity, they optimized their algorithm to consider liquidity and introduced multi-hop routes thanks to improvements in the Solana network, like the increase in log accounts and the introduction of the Address Lookup Table.
Metis Algorithm Implementation and Challenges
The Raccoons team further delves into the technical aspects and constraints of routing, such as the 64 account log limit on Solana. They turned to the literature for solutions, particularly a paper by Lozano and Madaglia, which inspired the Metis Routing Algorithm based on the concept of constrained shortest path problems. This approach allows the algorithm to avoid checking all route permutations while optimizing for the best trade price, despite being slightly slower than previous methods.
Facts + Figures
- Metis Routing Algorithm is designed to optimize cryptocurrency trade routes for better prices.
- Jibberter has processed $35 billion in volume, 96 million transactions, and supported 910,000 wallets.
- Multi-hop routing was enabled by increased account limits and the Address Lookup Table in the Solana network.
- The algorithm was inspired by open-source projects like UniSwap and a research paper by Lozano and Madaglia from 2013 on the constrained shortest path.
- Routing in Jibberter evolved from direct swaps and single hops to more complex permutations with multiple hops.
- Metis trades-off speed for better price discovery, surpassing the project's V2 algorithm and comparing favorably with UniSwap's performance.
- Users are encouraged to integrate their decentralized exchanges with the Jibberter API to optimize for Metis routing.
- "Our group promise: best price, best token selection and the best UX for users."
- "We solve the simplest problem first, and as the capacity of the network increases, we have more account slots, went from 32 to 64."
- "We should get inspired by other things that people have published, like open-source code or papers or literature."
- "It's actually quite similar to the problem we have on chain."
- "We prioritize on the price discovery instead of the runtime."
What is the Metis Routing Algorithm?
The Metis Routing Algorithm is a new method designed by the Raccoons team for their platform, Jibberter. It optimizes the route for cryptocurrency trades, particularly focusing on providing the best market price for any given trade by considering multiple trade routes and excluding less efficient permutations.
Why was the Metis Routing Algorithm developed?
The Metis Routing Algorithm was developed in response to the increasing complexity of routing cryptocurrency trades through multiple DEXs and the need to improve over simple hop and direct route comparisons. By adopting sophisticated routing strategies, the algorithm can find the optimal path that offers the best return for the trader.
How does Metis handle the constraints of the Solana network?
Metis makes strategic use of the limited account logs (64 in total) on the Solana network by applying the principles derived from the constrained shortest path problem, which involves finding the most efficient route under specific constraints - in this case, optimizing trade output within the limits of the blockchain's account logging capacity.
What results have been seen with the implementation of Metis?
With the implementation of the Metis algorithm, Jibberter has recorded significant improvements in price discovery for trades, despite the algorithm running slightly slower than their previous version. This improvement supports the platform's core promise of ensuring the best price for users' trades.
How do developers benefit from the new algorithm?
Developers, particularly those involved in decentralized exchanges, benefit from the new algorithm as it offers a more advanced routing solution that they can integrate into their platforms. This integration could lead to better service offerings for their end-users, like optimized swap transactions and potentially higher savings.
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- Facts + Figures
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- Questions Answered