Rate Router

InfinityPools traders that interact with the team provided website or API will have access to an off-chain component called the rate router that sources liquidity for trades in a “peer to pool” manner. This router eliminates almost all liquidity fragmentation, gives traders the best available interest rates for their trades and replenishes their position.

The rate router makes liquidity fragmentation a non issue thanks to the following protocol features:

  1. Liquidity ranges that enable higher levels of leverage (eg. 1000x) can also be used for all levels of leverage below it (1-999x leverage).

  2. Traders can combine separate liquidity ranges to create a given leverage multiple. For example, if the market price of ETH is 1000 USDC and a trader is looking to go 10x long, they can borrow liquidity centered at 900 USDC or they can borrow liquidity centered at 850 USDC and some centered at 950 USDC in the right proportions.

All of this is abstracted away when using the rate router. When a trader places an order with a given leverage multiple, it searches and combines different liquidity ranges on the trader’s behalf to give them the best interest rates possible. You can think of it a bit like Uniswap’s price router but for InfinityPools interest rates.

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