# Liquidity Source

In our pursuit to provide seamless rebalance operations on concentrated liquidity DEXes, we've chosen to leverage the power and efficiency of 1inch to source on-chain liquidity. 1inch is an aggregator of various decentralized exchanges, and it optimizes the best trade paths to find the most favorable rates for our operations. This ensures that our users benefit from minimal slippage and optimal trade execution.

During a rebalance operation, our assets might deviate from their target ratios due to market fluctuations. To restore the correct ratio, a swap of assets becomes imperative. This swap operation is executed on our backend. We have set 1inch as our default liquidity sourcing venue for this purpose, given its extensive reach and ability to aggregate liquidity from numerous sources. This not only offers us a wider pool of liquidity but also enhances the efficiency of the swap by minimizing potential costs.

However, we understand that in the dynamic world of decentralized finance, contingencies might arise. If for any reason the swap operation via 1inch encounters issues or fails, we have implemented a fallback mechanism. In such cases, our system will resort to the same-pool method. Using a calculated closed form solution, we derive the exact amount to swap within the existing pool, ensuring the rebalance operation's continuity and minimizing disruptions for our users.

Through this approach, we aim to combine the robustness and liquidity of 1inch with our platform's resilience, ultimately serving our users with efficiency and reliability.


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