# Why Infrared

Infrared is a causal liquidity engine for institutional DeFi execution. It compiles complex portfolio rebalancing intents—spanning LP tokens, vault shares, and yield positions—into single, optimized atomic transactions.

Standard aggregators were built for the Retail Era: single-token swaps between two counterparties. Infrared is built for the Institutional Era, where a "trade" is a state-changing event across a portfolio of derivative assets.

## The Three Capabilities

### LP Decomposition

Infrared looks inside derivative wrappers. Rather than selling an LP token at a discount on secondary markets, it recognizes that the token represents underlying value—and unlocks that value directly. This eliminates the liquidity gap that standard routers cannot bridge.

### Causal Simulation

Before execution, Infrared simulates the full sequence of events in order. If unwinding a large LP position changes the price of ETH, the engine accounts for that shift when pricing subsequent legs. This prevents self-cannibalization—where a naive executor routes trades through the very pools it is draining.

### Multi-Vector Rebalancing

Infrared treats a portfolio rebalance as a single equation. All inputs are aggregated into a virtual inventory, netted against desired outputs, and only the strictly necessary swaps are executed to close the gap. This minimizes fees, market impact, and sequencing risk.

## Who It Is For

* **Treasury Managers** executing atomic multi-asset rebalances with predictable outcomes
* **DAO Operators** who need deterministic execution that matches governance proposal expectations

## Quick Links

* [Overview](https://docs.infraredtrading.com/overview) -- How the API works
* [Getting Started](https://docs.infraredtrading.com/getting-started) -- Authentication and your first request
* [API Guides](https://docs.infraredtrading.com/api-guides) -- Detailed endpoint walkthroughs
* [Changelog](https://docs.infraredtrading.com/changelog) -- Release history

## Base URL

```
https://api.infraredtrading.com
```

## Authentication

All requests require an API key sent via the `X-API-Key` header. See [Authentication](https://docs.infraredtrading.com/getting-started/authentication) for details.