The Smart Router Engine

Best Execution Protocol

The Oraclyst Smart Router is the algorithmic heart of the platform. Its primary function is to guarantee Best Execution. This ensures that for any given trade size, the user pays the lowest possible price (when buying) or receives the highest possible return (when selling), inclusive of all fees and network costs.

The Routing Logic

When a user submits an order to buy $1,000 worth of "Yes" outcome for a specific event, the engine performs the following calculation in under 200 milliseconds:

1. Price Discovery: The router queries the order books of all connected venues (Polymarket, Kalshi, Limitless) to find the raw ask price.

2. Depth Analysis: It calculates the slippage for the requested trade size ($1,000). A venue might have a low price but insufficient liquidity, leading to high slippage. The router calculates the Effective Price after slippage.

3. Fee Normalization:

   • Polymarket: Adds Polygon gas fees (estimated) and 2% resolution fee (if applicable).

   • Kalshi: Adds exchange trading fees and withdrawal fees.

   • Limitless: Adds Base gas fees and platform swap fees.

4. Net Cost Comparison: The router compares the final Net Cost across all venues.

5. Execution Path: The trade is routed to the winning venue. If the order size is large, the router may split the order (e.g., $600 to Polymarket and $400 to Kalshi) to minimize total slippage.

Algorithm Goal: Minimize (Raw_Price + Slippage + Gas + Fees)