Fees & trade costs

Can a route look better in dollars but worse in tokens?

Explain when token quantity and dollar-value route rankings can differ because of separate costs, valuations or mismatched assets.

For the same output asset valued at the same positive price, more output tokens also means more gross dollar value. If the rankings disagree, something else changed: separate costs, the price source, the valuation time or the asset being compared.

Separate gross and net rankings

Assume hypothetical Route A returns 1,010 tokens and Route B returns 1,000. At $0.10 each, gross values are $101 and $100. A is higher under both measures.

Now give A $2 of separate costs and B $0.20. Net values become $99 and $99.80, so B ranks higher economically. The reversal comes from separate costs, not an inconsistency in the token conversion.

Find valuation mismatches

If an interface values A's tokens at $0.098 while another values B's at $0.10, the gross displays become $98.98 and $100. That does not prove B delivers more of the same asset. Normalize the valuation before comparing.

Token identity and balances are tied to the actual contract, rather than the label an interface assigns. Similar tickers across contracts or networks should not be treated as identical output without examining the asset and destination.

State the ranking criterion

For a receiving-quantity objective, report final tokens. For total economic cost, convert separately paid assets consistently and report net value. For an exact-output objective, compare total input required instead.

A stablecoin label is not sufficient reason to force a one-dollar valuation into every live comparison. When no defensible valuation is available, show native quantities and explicit conversion assumptions. That approach makes the comparison auditable without claiming that an uncertain dollar display is an executable cash price.

Sources & verification (1)

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  1. ERC-20: Token Standard

    Integer balances, decimals display field, allowance and transfers.

    https://eips.ethereum.org/EIPS/eip-20

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