Definition

Multi-hop routing = splitting the swap into multiple consecutive swaps through intermediate tokens to get the best final price.

A simple analogy:
You want to exchange rubles for yen.

The same is true for cryptocurrencies.

Fundamental Reason: Liquidity Fragmentation

On the Hyperliquid ecosystem:

Major pairs (high liquidity):

USDC/HYPE: $400M TVL
HYPE/ETH: $200M TVL
USDC/ETH: $150M TVL

Minor pairs (low liquidity):

TOKEN_A/TOKEN_B: $20k TVL ← problem!
TOKEN_C/TOKEN_D: $50k TVL
TOKEN_E/TOKEN_F: $80k TVL

1-hop (direct swap):

TOKEN_A → TOKEN_B

Condition for use:

✓ A direct pair exists
✓ Liquidity >20× swap size
✓ Price impact <2%

2-hop (via 1 intermediate token):

TOKEN_A → HYPE → TOKEN_B
          ↑
    Bridge token

Usage:

- No direct pair TOKEN_A/TOKEN_B
- OR the direct pair has low liquidity
- HYPE has deep liquidity to both tokens

3-hop (via 2 intermediate tokens):

TOKEN_A → HYPE → ETH → TOKEN_B
          ↑      ↑
      Bridge tokens

Usage:

- Exotic tokens
- Maximum optimization for large swaps
- Each hop uses different sources of liquidity

4+ hops (rare, only for extreme cases):

TOKEN_A → HYPE → ETH → USDC → TOKEN_B

When:

- Very rare tokens
- It is necessary to minimize the impact on giant swaps
- Each hop has a unique advantage

Formula combined price impact

For the 2-hop way:
Combined Impact = Impact₁ + Impact₂ + (Impact₁ × Impact₂)

Example:

Hop 1: TOKEN_A → HYPE (impact 1.5%)
Hop 2: HYPE → TOKEN_B (impact 2.5%)

Combined = 1.5% + 2.5% + (0.015 × 0.025)
         = 4% + 0.0375%
         = 4.0375%

vs Direct swap: 12.5%
Savings: 8.46%

Target: Swap $20,000 TOKEN_A → TOKEN_B

1. High liquidity (main criterion)

Ideal bridge tokens on Hyperliquid:

Tier 1 (BEST bridge tokens):

HYPE:  $800M+ total liquidity
       50+ trading pairs
       24h volume: $200M+
       → UNIVERSAL bridge token

USDC:  $500M+ total liquidity
       40+ trading pairs
       24h volume: $150M+
       → Stablecoin bridge

ETH:   $300M+ total liquidity (wrapped)
       30+ trading pairs
       24h volume: $80M+
       → Major crypto bridge

Tier 2 (GOOD bridge tokens):

BTC (wrapped): $100M+ liquidity
SOL (wrapped): $80M+ liquidity
USDT:           $60M+ liquidity

Why HYPE = the best bridge token on Hyperliquid:

• Native Token → Maximum Liquidity
• Pairs with all major and most minor tokens
• Lowest fees on HyperCore Spot (0.05% taker)
• Deepest order books

Checklist for bridge token:

✓ EXCELLENT (>40 pairs):
  → Can link almost any token
  → Examples: HYPE, USDC

⚠️ GOOD (20-40 pairs):
  → Can link major and many minor tokens
  → Examples: ETH, BTC (wrapped)

✗ POOR (<20 pairs):
  → Limited use
  → is NOT suitable as a universal bridge

TIGHT SPREAD is important for the bridge token:

Low-volatility bridge tokens (preferred for multi-hop):

USDC, USDT: ~0% volatility
→ Predictable result
→ No additional risk

High-volatility bridge tokens (use cautiously):

HYPE, ETH, BTC: 2–8% daily volatility
→ Price can change between hops
→ But: deep liquidity compensates for the risk

Extreme volatility (AVOID as bridge):

Meme coins, micro-caps: 20–200% daily
→ NEVER use as intermediate token

Decision Tree

START: Need a swap TOKEN_A → TOKEN_B
    ↓
┌───────────────────────────────────────┐
│ Is there a direct A/B pair?           │
└───────┬───────────────────────────┬───┘
        NO                          YES
        ↓                            ↓
    MULTI-HOP                    ┌─────────────────────┐
    Required │ Liquidity >20× │
                                 │ Swap size?       │
                                 └──────┬──────────┬───┘
                                      YES         NO
                                       ↓           ↓
                                 ┌──────────┐  MULTI-HOP
                                 │ Impact │ probably better
                                 │ <2%?     │
                                 └────┬──┬──┘
                                    YES NO
                                     ↓   ↓
                                  DIRECT MULTI-HOP
                                   SWAP is better
            

Scenario 1: Major tokens (HYPE, ETH, BTC)

Swap: HYPE → ETH ($50,000)

Direct pair analysis:
HYPE/ETH pool: $200M TVL
Swap / TVL: 0.025%
Expected impact: <0.5%

Multi-hop analysis:
HYPE → USDC → ETH
Combined pools: $600M+ TVL
Expected impact: <0.3%

Scenario 2: Mid-cap to mid-cap

Swap: TOKEN_C → TOKEN_D ($10,000)

Direct pair analysis:
TOKEN_C/TOKEN_D pool: $50k TVL
Swap / TVL: 20%
Expected impact: 16.7% ← DISASTER!

Multi-hop analysis:
TOKEN_C → HYPE → TOKEN_D
Pool 1 (C/HYPE): $500k TVL → impact 2%
Pool 2 (HYPE/D): $300k TVL → impact 3.3%
Combined impact: 5.4%

Scenario 3: Exotic to exotic token

Swap: RARE_A → RARE_B ($5,000)

Direct pair: NONE

Multi-hop options:

Option 1 (2-hop): RARE_A → HYPE → RARE_B
Pool1: $100k TVL → impact 5%
Pool2: $80k TVL → impact 6.25%
Combined: 11.5%

Option 2 (3-hop): RARE_A → HYPE → USDC → RARE_B
Pool1: $100k TVL → impact 5%
Pool2: $400M TVL → impact ~0%
Pool3: $60k TVL → impact 8.3%
Combined: 13.4%

Option 3 (3-hop alt): RARE_A → USDC → HYPE → RARE_B
Pool1: $120k TVL → impact 4.2%
Pool2: $400M TVL → impact ~0%
Pool3: $250k TVL → impact 2%
Combined: 6.25%

1. Automatic detection of all paths

Without Hypertrade (manual analysis):
Your task:

1. Check for the Existence of a Straight Pair ✗
2. Find all possible intermediate tokens
   → HYPE, USDC, ETH, BTC, SOL, USDT... (20+ Options)
3. For each intermediate token:
   - Check the liquidity of the A/intermediate pair
   - Check the liquidity of the intermediate/B pair
   - Calculate combined impact
4. Compare all options
5. Choose the best one
6. Perform multiple transactions

Time: 20–30 minutes
Error probability: 40–60% (human calculation mistakes)

With Hypertrade R1 Router:

1. Type: TOKEN_A → TOKEN_B, amount
2. Click: "Get Quote"

Hypertrade automatically:

✓ Scans 1000+ possible paths in 0.5 seconds
✓ Checks 1-hop, 2-hop, 3-hop, 4-hop routes
✓ Analyzes the liquidity of each pool/order book
✓ Calculates price impact for EVERY path
✓ Takes into account gas costs
✓ Launches Invisium Simulation (99.9% accuracy)
✓ Returns an OPTIMAL path

Time: ~1–2 seconds
Accuracy: 99.5–99.9%

Hypertrade R1 routing algorithm:

Hypertrade's unique advantage:
You can combine MULTI-HOP and SPLIT-ROUTING at the same time.

Example:
Swap: $50,000 TOKEN_A → TOKEN_B

Optimal execution:

Route 1 (40% = $20,000):
TOKEN_A → HYPE → TOKEN_B (2-hop)
├─ HyperCore Spot: A → HYPE
└─ Hyperswap: HYPE → B
Expected output: 8,100 TOKEN_B
Impact: 4.5%

Route 2 (35% = $17,500):
TOKEN_A → USDC → HYPE → TOKEN_B (3-hop)
├─ Kittenswap: A → USDC
├─ HyperCore Spot: USDC → HYPE
└─ Prjx: HYPE → B
Expected output: 7,050 TOKEN_B
Impact: 5.2%

Route 3 (25% = $12,500):
TOKEN_A → TOKEN_B (direct, partial)
└─ Prjx: A → B (low liquidity, but best price for tail)
Expected output: 4,950 TOKEN_B
Impact: 7.8%


Total expected output: 20,100 TOKEN_B
Average impact: 5.5%

vs Best single-path (2-hop only):
Expected: 18,500 TOKEN_B
Impact: 7.5%

Multi-path + multi-hop advantage: +1,600 TOKEN_B
Savings: $8,000 (16% better!)

Conclusion: Hypertrade uses BOTHATOOLS for maximum optimization.

Case 1: Exotic token swap

Setup:
Swap: RARE_TOKEN → ANOTHER_RARE ($10,000)
Direct pair: DOES NOT exist
Path Analysis:

Case 2: Large mid-cap swap

Setup:
Swap: TOKEN_C → TOKEN_D ($100,000)
Direct pair: Exists, but shallow liquidity
Comparison:

Case 3: Stablecoin arbitrage via multi-hop

Setup:
Goal: USDT → USDC ($50,000)
Reason: Slight depeg, arbitrage opportunity
Analysis:

1. Always check if multi-hop can improve the price

Before EVERY swap >$5,000:

Check if direct pair exists
If yes: check TVL vs swap size ratio
If ratio >20× → direct probably OK
If ratio <20× → test multi-hop alternatives
Use Hypertrade to auto-compare

2. HYPE = default bridge token on Hyperliquid

When in doubt, route through HYPE:

✓ Deepest liquidity ($800M+)
✓ Most trading pairs (50+)
✓ Lowest fees (0.05% on HyperCore Spot)
✓ Native token → no bridge risk

Default strategy:
ANY_TOKEN → HYPE → ANY_OTHER_TOKEN

3. Avoid >4 hops

Optimal hop count:

1-hop (direct): BEST (if liquidity is sufficient)
2-hop: EXCELLENT (most common optimal)
3-hop: GOOD (for exotic tokens)
4-hop: ACCEPTABLE (rare cases)
5+ hops: ❌ AVOID (diminishing returns + gas costs)

Reason:

- Each hop adds ~0.05–0.3% fees
- Each hop adds complexity risk
- Marginal benefit decreases after 3 hops

4. Consider gas costs in multi-hop

Gas cost breakdown on Hyperliquid:

1-hop (direct): ~$4–6
2-hop: ~$6–10
3-hop: ~$10–15
4-hop: ~$15–20

Break-even analysis:

If multi-hop saves >$20, then even 4-hop is justified
If you save <$10, choose an easier route

Hypertrade automatically takes gas into account in the calculation

5. For stablecoins, prefer direct swaps

USDC → USDT:
Direct is usually better (tight spread, deep pool)

Exception:
If direct pool TVL <$1M → route through HYPE:
USDC → HYPE → USDT

6. Combine multi-hop with order splitting

Large swap ($50k+):

Instead of:
- 100% through one multi-hop path

Do:

- 50% via Path A (2-hop: TOKEN → HYPE → TARGET)
- 30% via Path B (3-hop: TOKEN → USDC → HYPE → TARGET)
- 20% via Path C (direct if exists)

Benefit:

- Diversification reduces the risk of a single pool
- Uses multiple sources of liquidity
- Hypertrade does it automatically

7. Monitor the volatility of intermediate tokens

During high volatility (VIX crypto >40):

⚠️ CAUTION: Multi-hop via volatile bridge tokens

Example:
TOKEN_A → ETH → TOKEN_B

If ETH volatility is 15%/day:
- Price may change between hops
- Can cause unexpected slippage

Solution:

- Use stablecoin bridge (USDC) instead of ETH
- OR use direct swap (if possible)
- Hypertrade Invisium Simulation takes this into account

8. Use Consistency Paths for DCA Strategies

If you make regular purchases (DCA):

✓ Use SAME multi-hop path every time
✓ Document results
✓ Optimize path once a month

Benefit:

- Predictable results
- Lighter track performance
- Can optimize based on history

Example DCA path:
USDC → HYPE → TARGET_TOKEN (2-hop)

Every week, $1,000
Track average impact over time

9. Check the liquidity of BOTH pools in 2-hop

Common mistake:
Checking only first hop liquidity

Correct approach:

10. Trust Hypertrade Automation

Manual optimization:

- 20-30 minutes of analysis
- 40–60% chance of suboptimal choice
- Human calculation errors

Hypertrade R1 Router:

- 1-2 seconds of analysis
- 99.5–99.9% optimal selection
- Invisium 99.9% accuracy

ROI Hypertrade auto-routing:
$500k/year volume:

- Manual: $25k–$50k losses (suboptimal paths)
- Hypertrade: $8k–$15k losses
- SAVINGS: $17k–$35k/year

Just use Hypertrade. Let it optimize.

Pre-Swap Multi-Hop Analysis (if done manually)

Step 1: Check direct pair
    EXISTS: Go to Step 2
    NOT EXISTS: Multi-hop required → Step 3

Step 2: Evaluate direct pair liquidity
    TVL / Swap size > 20: Direct probably OK
    TVL / Swap size < 20: Test multi-hop → Step 3

Step 3: Identify bridge token candidates
    Priority order:
    1. HYPE (always first choice)
    2. USDC (for stablecoin swaps)
    3. ETH (for major crypto swaps)
    4. Other major tokens

Step 4: Calculate combined impact
    For each potential path:
    - Calculate impact per hop
    - Sum combined impact
    - Add gas costs

Step 5: Compare all options
    Select: MIN(Total Cost)

Step 6: Execute
    Manually: Multiple TX (complex)
    OR use Hypertrade: 1 atomic TX ✓

Step 1: Open https://ht.xyz

Step 2: Input swap details
    From: TOKEN_A
    To: TOKEN_B
    Amount: $_____

Step 3: Click "Get Quote"
    Hypertrade automatically:
    ✓ Tests 1000+ paths
    ✓ Selects optimal multi-hop route
    ✓ Runs Invisium Simulation
    ✓ Shows expected output

Step 4: Review route breakdown
    Example display:
    "Optimal route (2-hop):
    TOKEN_A → HYPE (HyperCore Spot)
    → TOKEN_B (Hyperswap)
    Expected: 10,458 tokens
    Impact: 2.3%"

Step 5: Confirm and execute
    1 transaction = atomic execution
    All hops happen in single TX

Step 6: Verify result
    Expected: 10,458 tokens
    Actual: 10,454 tokens
    Deviation: -0.04% ✓ Excellent!