Multi Hop Routing

The main feature of Cog Pools is that they can be orchestrated with each other to provide arbitrary loan pairs. With the correct Risk Tiers, there can be a way to filter and estimate the risk associated with a certain route of pools. Routing will also automatically adjust for the total APR and breakdown of liquidation risk involved on a per asset level.

Here is an example of how it works in practice.

Example: Given these pools, if you wanted to borrow AVAX with ETH as collateral, the Cog router would under the hood: borrow USDC against your ETH, then DAI against your USDC, and then finally AVAX against your DAI. As an end user, you only need to worry about one Aggregate Interest Rate which is the combined rate of all of these sub-loans. Additionally, Vaults will help prevent liquidity fragmentation, and help lenders balance assets across pools they are comfortable with their assets being paired against, giving them full customization to harvest the best yields.

High Level Overview of pool information

Deeper Breakdown of route information