Dynamic Slippage Config

This repository contains the dynamic_slippage_config_json that is used to estimate slippage at the /swap endpoint.

Slippage Issues

1. Slippage threshold is not a one-size-fit-all solution -- Swapping different types of tokens require users to change slippage thresholds to cater to specific profiles.
2. Many different factors can contribute to slippage -- one of them is time, especially when users can take time to accept a quote/sign the transaction.

How does Dynamic Slippage help

1. Based on the categories of the tokens being traded, Dynamic Slippage will use its category min max to calculate the optimal slippage.
2. Dynamic Slippage is also implemented at the /swap endpoint, this will allow slippage to be estimated after "Swap Click" instead of during quoting, which will bring the estimation closer to the actual swap execution.

In the backend If dynamicSlippage: true is passed to the /swap endpoint, the backend will

1. Simulate a swap based on the exact quote.
2. Use the quotedAmount and simulatedAmount to calculate a simulatedSlippage.
3. Use the amplificationRatio and multiply it to the simulatedSlippage.
4. With the latest simulatedSlippage value, we will apply some math to it.

• Depending on the input/output tokens' categories, we will use the worse of category between the 2 tokens
• This will dictate the categoryMin and categoryMax
• Take the results = min(simulatedSlippage, userMin, categoryMin)
• Take the finalSlippage = max(results, userMax, categoryMax)

5. Finally, the /swap endpoint will return the response already using the finalSlippage based on the the simulation and heuristics.

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Internal test stuff

Validate dynamic slippage config

cargo test