What is a routing token?
A routing token (such as axlUSDC or frxETH) is the designated token used by Squid to efficiently and securely swap a requested token from the source chain to the requested token on the destination chain, which is made possible through a series of multi-step transactions.
In situations involving price volatility and minimal slippage, transactions might revert to the routing token prevent unwanted losses from slippage or adverse price changes.
This means that you will receive the routing token on the destination chain, rather than the token you’ve requested. When this occurs, you will receive the equivalent value of your original swap amount in one of Squid’s routing tokens on the destination chain.
List of Squid’s routing tokens
- axlUSDC
- frxETH