Swapzone Glossary: Routing

When you make a crypto swap, the assets don’t always move directly from one token to another.

That’s where routing comes in. Routing is the process of finding a suitable path for executing a swap based on the available liquidity, trading pairs, providers, fees, and other conditions.

Why does it matter?

1. It helps find alternative paths when a direct swap isn’t available or efficient.
2. It takes available liquidity into account, which can affect the amount you receive.
3. Different routes can have different costs and execution conditions.
4. The chosen route can affect the final result through fees, slippage, price impact, and execution speed.

In simple terms, routing is about finding a way to get from the asset you have to the asset you want using the available paths.

Understanding routing also helps explain what happens behind the scenes when a crypto swap isn’t as simple as A → B.

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