On the Convergence Rate of the One-Hop Transfer Algorithm

Abstract: The transfer algorithm~\cite{jiang} solves the on-chain one-hop swap routing problem. In \cite{jiang}, the convergence is proved but the convergence rate is left open. We prove that the algorithm terminates in at most $\mathcal{O}(Nκ\log\frac{1}{\varepsilon})$ rounds, where $N$ is the number of AMMs, $κ$ a liquidity heterogeneity parameter and $\varepsilon$ a tolerance parameter.