Smart routing is the key to optimal swap execution. When trading on decentralized protocols like Pharaoh, the routing engine performs real-time depth analysis across liquidity pools, calculates price impact across different fee tiers, and algorithmically selects the path that delivers the best execution price. This multi-factor optimization—balancing slippage, gas costs, and token pairs—separates premium DEX experiences from basic swaps. V3's enhanced routing architecture demonstrates how sophisticated path-finding can meaningfully improve trader outcomes compared to earlier iterations.