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Liquidity Provider Routing (SDR)

CRYMBO Connect features the Smart Dynamic Routing (SDR) engine — a programmable, policy-driven system for directing digital asset deposits and withdrawals across a network of integrated liquidity providers (LPs). SDR dynamically selects the optimal LP per transaction based on real-time network conditions, compliance rules, and treasury exposure policies.

This system ensures that each asset movement is executed securely, efficiently, and in full regulatory alignment — whether it's stablecoins like USDC, native tokens like ETH, or other supported digital assets.

How It Works​

Each LP onboarded into the SDR framework is registered with metadata, including:

  • ✅ Supported digital assets and blockchain networks (e.g. USDC on Ethereum, EUR on SEPA)
  • ✅ Jurisdictional coverage and regulatory licensing
  • ✅ Real-time metrics: fill rates, latency, fee structure
  • ✅ Routing weight, volume caps, and compliance score

When a digital asset transaction is triggered, the SDR engine:

  1. Filters providers by supported asset/network
  2. Applies compliance and jurisdictional rules via the Crymbo Oracle
  3. Ranks providers by routing score
  4. Executes the transaction with the highest-priority LP

Routing Criteria​

The SDR routing engine evaluates and weighs the following factors:

  • 📊 Provider performance (uptime, fill rate, response time)
  • 💰 Execution cost (gas fees, slippage, platform fees)
  • 🛡 Regulatory compatibility (MiCA, FATF, local compliance)
  • 🔒 Oracle-based risk score (e.g., counterparty trust, KYC)
  • 🎯 Institutional preferences (preferred LPs, max exposure limits)

All routing decisions are logged for auditing and stored with policy versioning for traceability.

Supported Routing Types​

  • Deposit Routing: Direct incoming digital assets to the optimal LP for processing or custody.
  • Withdrawal Routing: Select the best provider for outbound transactions to clients or counterparties.
  • Swap Routing (coming soon): Enable optimized asset conversions through multiple LPs in real time.

Example Use Case​

Scenario: A user deposits USDC on the Polygon network.

  1. SDR checks all approved LPs supporting USDC on Polygon.
  2. Filters out LPs exceeding exposure or missing jurisdictional coverage.
  3. Ranks remaining LPs by performance and fee structure.
  4. Executes the transaction via the top-ranked LP.
  5. Logs routing metadata to the Crymbo dashboard and Oracle.

Liquidity Provider Integration Requirements​

To participate in SDR, LPs must:

  • Complete KYC/KYB onboarding via Crymbo Connect
  • Declare supported assets, networks, and jurisdiction
  • Expose one of the following:
    • RESTful API or WebSocket interface
    • Webhook endpoints for callback events
    • Authentication via API key, JWT, or OAuth2

Monitoring & Failover Logic​

SDR includes intelligent fallback mechanics:

  • 🚨 If an LP fails during execution:
    • The engine auto-retries with the next-best candidate
    • Logs the failure in the compliance dashboard
    • Sends real-time alerts to system administrators

Upcoming Features (Q3–Q4 2025)​

  • ⚙️ AI-assisted routing models using historical execution data
  • 📈 Flow forecasting for liquidity and fee optimization
  • 🪙 CRYMBO Token staking for LP prioritization

Next: 👉 Treasury Risk Engine ›