update docs

README.md

@@ -11,9 +11,14 @@ The use case for this is performing certain data and computationally intensive t
 the chain node or the clients. For example, routing falls under this category because it requires
 all pool data for performing the complex routing algorithm.
 
+## Integrator Guide
+
+Follow [this link](https://hackmd.io/@3DOBr1TJQ3mQAFDEO0BXgg/S1bsqPAr6) to find a guide on how to 
+integrate with the sidecar query server.
+
 ## Supported Endpoints
 
-## Pools Resource
+### Pools Resource
 
 1. GET `/pools/all`
 
@@ -64,7 +69,7 @@ curl "https://sqs.osmosis.zone/pools/all" | jq .
 ]
 ```
 
-## Router Resource
+### Router Resource
 
 
 1. GET `/router/quote?tokenIn=<tokenIn>&tokenOutDenom=<tokenOutDenom>`
@@ -343,7 +348,7 @@ This endpoint should be disabled in production.
 
 Parameters: none
 
-## System Resource
+### System Resource
 
 1. GET `/system/healthcheck`
 
@@ -440,3 +445,98 @@ factory/osmo19pw5d0jset8jlhawvkscj2gsfuyd5v524tfgek/TURKEY
 
 Any pool containing these tokens would have the TVL error error set to
 non-empty string, leading to the pool being deprioritized from the router.
+
+### Algorithm
+
+In this section, we describe the general router algorithm.
+
+1. Retrieve pools from storage.
+2. Filter out low liquidity pools.
+3. Rank pools by several heuristics such as:
+ - liquidity
+ - pool type (priority: transmuter, concentrated, stableswap, balancer)
+ - presence of error in TVL computation.
+4. Compute candidate routes
+   * For the given token in and token out denom, find all possible routes
+   between them using the pool ranking discussed above as well as by limiting
+   the algorithm per configuration.
+   * The configurations are:
+      * Max Hops: The maximum number of hops allowed in a route.
+      * Max Routes: The maximum number of routes to consider.
+   * The algorithm that is currently used is breadth first search.
+5. Compute the best quote when swapping amount in in-full directly over each route.
+6. Sort routes by best quote.
+7. Keep "Max Splittable Routes" and attempt to determine an optimal quote split across them
+   * If the split quote is more optimal, return that. Otherwise, return the best single direct quote.
+
+### Caching
+
+We perform caching of routes to avoid having to recompute them on every request.
+The routes are cached in a Redis instance.
+
+There is a configuration parameter that enables the route cache to be updated every X blocks.
+However, that is an experimental feature. See the configuration section for details.
+
+The router also caches the routes when it computes it for the first time for a given token in and token out denom.
+As of now, the cache is cleared at the end of very block. We should investigate only clearing pool data but persisting
+the routes for longer while allowing for manual updates and invalidation.
+
+### Configuration
+
+The router has several configuration parameters that are set via `app.toml`.
+
+See the recommended enabled configuration below:
+```toml
+###############################################################################
+###              Osmosis Sidecar Query Server Configuration                 ###
+###############################################################################
+
+[osmosis-sqs]
+
+# SQS service is disabled by default.
+is-enabled = "true"
+
+# The hostname and address of the sidecar query server storage.
+db-host = "localhost"
+db-port = "6379"
+
+# Defines the web server configuration.
+server-address = ":9092"
+timeout-duration-secs = "2"
+
+# Defines the logger configuration.
+logger-filename = "sqs.log"
+logger-is-production = "true"
+logger-level = "info"
+
+# Defines the gRPC gateway endpoint of the chain.
+grpc-gateway-endpoint = "http://localhost:26657"
+
+# The list of preferred poold IDs in the router.
+# These pools will be prioritized in the candidate route selection, ignoring all other
+# heuristics such as TVL.
+preferred-pool-ids = []
+
+# The maximum number of pools to be included in a single route.
+max-pools-per-route = "4"
+
+# The maximum number of routes to be returned in candidate route search.
+max-routes = "20"
+
+# The maximum number of routes to be split across. Must be smaller than or
+# equal to max-routes.
+max-split-routes = "3"
+
+# The maximum number of iterations to split a route across.
+max-split-iterations = "10"
+
+# The minimum liquidity of a pool to be included in a route.
+min-osmo-liquidity = "10000"
+
+# The height interval at which the candidate routes are recomputed and updated in
+# Redis
+route-update-height-interval = "0"
+
+# Whether to enable candidate route caching in Redis.
+route-cache-enabled = "true"
+```