ETH trading and slippage
How ETH buys mint proportional backing, how ETH sells redeem it, and which execution limits protect a quote.
The native basket router connects ETH to the vault’s underlying mint and redemption operations. It can buy the required constituent quantities and mint shares, or redeem shares and convert the constituents back to ETH, in one transaction.
This route requires constituent liquidity. It does not require a separate market for the basket’s share token. Pool swaps provide a separate way to trade existing shares.
Buying with ETH
The router reads previewMint for the requested gross share amount, acquires the exact required constituent quantities, and deposits them into the vault. A wrapped-ETH constituent is reserved directly; other constituents use exact-output V3 swaps.
The ETH sent with the transaction is the maximum spend. The router refunds unused ETH to the payer, while the chosen receiver gets the net shares. The immutable issuance fee applies to this mint.
Changes in constituent pool prices can change the ETH needed, but they do not change the reserve-proportional issuance rule. A buy fails if it cannot acquire the required quantities within the available spend or deliver the minimum net shares.
Selling for ETH
The holder approves the router to transfer the intended share amount. The router pulls those shares, requests redemption to itself, claims each nonzero constituent, swaps the proceeds into wrapped ETH, and pays native ETH to the receiver.
The transaction enforces constituent redemption minimums and a minimum total ETH output. All steps succeed together or revert together. A token freeze, failed claim, unavailable route, or insufficient total output can prevent the sale. The holder can still use direct redemption and separate claims.
Quote limits
The current application quote policy uses the following defaults:
| Operation | Submitted execution limit |
|---|---|
| ETH-funded creation | Each swapped constituent minimum is 0.5% below its quoted output, rounded down; a direct wrapped-ETH allocation uses its exact amount |
| ETH buy through minting | Maximum spend is 0.5% above the estimate, rounded up and kept within the entered budget |
| ETH sell through redemption | Minimum total ETH is 0.5% below the estimate, rounded down |
Quotes expire after two minutes. The quote service also rejects constituent routes with more than 5% estimated price impact against fee-adjusted pool spot rates and rejects shared pools across constituent legs.
The 0.5% margin addresses movement between quote and execution. The 5% impact check is a separate route-screening rule. Neither is an oracle valuation or a promise about a share’s market value.
The contract enforces the submitted amounts and deadline. The quote service’s fixed percentages are application defaults, not immutable fee or slippage parameters in the vault.
Route and settlement boundaries
The router accepts baskets from its two configured community registries and uses one immutable V3 venue. Each constituent route has at most two pools and is checked against its factory and expected token endpoints.
Temporary DEX and vault allowances are cleared after use. Exact balance checks account for operation funds while preserving pre-existing router donations. The router has no administrator, asset-sweep function, or rebalance authority.
The displayed ETH quote is executable route information, not dollar NAV. Network gas is separate, and a supported-route comparison does not search every DEX or guarantee the best available price.