# 2.4 Swap & Routing Engine with Parametric Market-Making

DOR's swap engine has a structure where a parametric AMO (Automated Market Operations) layer is superimposed on a traditional $x \cdot y = k$ AMM.

The goal of this kernel is not strict price discovery, but the assurance of price stabilization and liquidity elasticity.

#### 2.4.1 Swap Pipeline

From the user's perspective, a swap looks like a simple exchange of "Meme Coin ↔ DOR," but internally, it goes through the following pipeline:

1. **Ingress**: Assets from an external wallet flow into the DOR protocol. According to HLP rules, they are distributed proportionally to MOP/SOP/IRP and then incorporated into the MSP of each operation pool.
2. **Routing & Price Locking**: The Route Planner selects the optimal route combining MSP, RP, and external DEXs based on slippage, effective depth, and oracle status. The reference price uses the TWAP-based price at the time of execution completion ($t\_f$), not the snapshot at the time of request.
3. **Parametric Fill**: Based on parameters such as the deviation $\Delta$ between the current market price and reference price, effective pool liquidity, and recent volatility $\sigma$, the spread, contribution fee, and execution band are dynamically adjusted. As $\Delta$ increases, the spread widens, but simultaneously, the protocol is designed to absorb assets in that section, partially automating a "Buy the Dip" mechanism.
4. **Settlement & Logging**: The final execution result is settled in the Execution Layer, and summary data is passed to the Policy & Accounting Layer to be committed as part of the daily on-chain record.

Thanks to this pipeline structure, users see a simple swap interface, but in reality, price, liquidity, and risk are being readjusted in multiple layers.

#### 2.4.2 Downside-Driven Inflow Function

The swap inflow demand assumed by DOR follows a non-linear inverse correlation structure where demand increases as the price drop magnitude increases.

The intuitive closed loop is as follows:

Market Drop → Increased Swap Inflow into DOR → Decreased External Circulation → Buffering of Additional Downward Pressure

Through this, DOR naturally operates as a liquidity "sponge" during market correction phases, working in a direction where more assets are absorbed into the protocol as prices plunge.

At the same time, a saturation parameter $\lambda$ is set to place an upper limit so that the inflow scale does not explode to a level that shakes the entire system.

Because of this Downside-Driven Inflow kernel and parametric AMO structure, DOR's AMM has the character of a self-stabilizing stabilizer compared to classical constant product AMMs.

It is a form that embeds a counter-correlated buffering device attempting to offset overheating/oversold sections of the meme market, rather than a unidirectional response to price signals and liquidity allocation.

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