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PRD: DEX Aggregator Router

Summary

One-liner: Route trades across multiple DEXs to find optimal prices with minimal slippage and gas costs Domain: Cryptocurrency / DeFi Trading Users: DeFi Traders, Arbitrage Bots, Portfolio Managers, MEV-Aware Users

Problem Statement

DeFi traders face fragmented liquidity across dozens of decentralized exchanges. A single trade on one DEX may have 5% price impact, while splitting across multiple venues could reduce it to 0.5%. Without aggregation tools, traders:

1. Overpay due to poor price discovery across DEXs
2. Suffer unnecessary slippage from suboptimal routing
3. Miss multi-hop opportunities (ETH→USDC→TOKEN cheaper than ETH→TOKEN)
4. Waste gas on inefficient transaction paths
5. Fall victim to MEV extraction (sandwich attacks, frontrunning)

Target Users

Persona 1: Active DeFi Trader

• Profile: Trades $1K-$50K weekly across multiple tokens
• Pain Points: Manually checking 5+ DEXs is time-consuming; misses optimal routes
• Goals: Best execution price with minimal effort; understand true cost of trades
• Usage Pattern: Multiple trades daily, needs quick comparisons

Persona 2: Arbitrage Bot Operator

• Profile: Runs automated trading strategies exploiting price differences
• Pain Points: Needs real-time route optimization; gas efficiency is critical
• Goals: Programmatic access to optimal routes; sub-second decisions
• Usage Pattern: High frequency, API-first, cost-sensitive

Persona 3: Whale / Treasury Manager

• Profile: Executes large trades ($100K+) for DAOs or personal portfolios
• Pain Points: Large trades create massive price impact; MEV exposure
• Goals: Minimize market impact; protect against sandwich attacks
• Usage Pattern: Infrequent but high-value trades requiring careful execution

User Stories

Critical (P0)

1. As a DeFi trader, I want to compare prices across multiple DEXs for a token pair, so that I can execute at the best available rate.

   • Acceptance Criteria:
     • Query returns prices from at least 5 major DEXs (Uniswap V2/V3, SushiSwap, Curve, Balancer)
     • Response includes price, liquidity depth, and estimated gas cost per venue
     • Results sorted by effective rate (price after gas)

2. As a trader, I want to see optimal route recommendations including multi-hop paths, so that I can minimize price impact on larger trades.

   • Acceptance Criteria:
     • System identifies multi-hop routes (e.g., ETH→USDC→TOKEN)
     • Compares direct vs. multi-hop with total cost analysis
     • Shows price impact at each hop

3. As a large trader, I want split-order recommendations across multiple DEXs, so that I can reduce market impact on whale-sized trades.

   • Acceptance Criteria:
     • For trades >$10K, analyze split order strategies
     • Show percentage allocation per DEX to minimize total slippage
     • Calculate aggregate vs. single-venue price improvement

Important (P1)

4. As a MEV-aware user, I want to see MEV protection recommendations, so that I can avoid sandwich attacks.

   • Acceptance Criteria:
     • Flag high-MEV-risk routes (low liquidity, pending large orders)
     • Recommend private transaction options (Flashbots, CoW Swap)
     • Show estimated MEV exposure per route

5. As a gas-conscious trader, I want gas-optimized route selection, so that I don't waste ETH on complex routes for small trades.

   • Acceptance Criteria:
     • Calculate break-even point for multi-hop vs. direct routes
     • Factor current gas prices into recommendations
     • Warn when gas cost exceeds 2% of trade value

Nice-to-Have (P2)

6. As a trader, I want historical route performance data, so that I can trust the recommendations.
   • Acceptance Criteria:
     • Show average slippage vs. quoted for each DEX
     • Display route success rates
     • Track execution vs. quoted price variance

Functional Requirements

Core Features

• REQ-1: Multi-DEX Price Fetching

  • Query Uniswap V2, Uniswap V3, SushiSwap, Curve, Balancer
  • Integrate aggregator APIs (1inch, Paraswap, 0x)
  • Support major chains: Ethereum, Arbitrum, Polygon, Optimism

• REQ-2: Route Discovery Engine

  • Direct swap path identification
  • Multi-hop route construction (up to 3 hops)
  • Split order optimization (2-5 venue splits)

• REQ-3: Price Impact Analysis

  • Calculate slippage at various trade sizes
  • Identify liquidity depth per venue
  • Show impact curves for trade sizing decisions

• REQ-4: Gas Cost Optimization

  • Estimate gas per route (simple vs. complex)
  • Calculate effective rate including gas
  • Dynamic gas price integration

• REQ-5: MEV Protection Assessment

  • Risk scoring for sandwich attack exposure
  • Private transaction recommendations
  • CoW Swap / Flashbots integration guidance

Trade Size Recommendations

Non-Goals

• NOT executing trades (read-only analysis and recommendations)
• NOT providing financial advice or trade signals
• NOT supporting centralized exchanges
• NOT real-time order book streaming (snapshot-based)
• NOT building trading bots (analysis only)

API Integrations

Success Metrics

UX Flow

1. User Input
   ├── Token pair (ETH/USDC)
   ├── Trade amount ($5,000)
   ├── Chain (Ethereum mainnet)
   └── Preferences (gas sensitivity, MEV protection)

2. Data Collection (parallel)
   ├── Query 1inch API
   ├── Query Paraswap API
   ├── Query DEX subgraphs
   └── Fetch gas prices

3. Route Analysis
   ├── Direct routes ranked
   ├── Multi-hop routes discovered
   ├── Split strategies calculated
   └── MEV risk assessed

4. Results Presentation
   ├── Best route highlighted
   ├── Alternative options shown
   ├── Cost breakdown (price + gas + slippage)
   └── MEV protection recommendations

Constraints & Assumptions

Constraints

• API rate limits require caching and request optimization
• Gas prices volatile; recommendations valid for ~30 seconds
• Some DEXs have different liquidity on different chains

Assumptions

• User has basic understanding of DEX trading
• User can execute recommended trades manually or via preferred interface
• Real-time prices acceptable (not tick-by-tick precision)

Risk Assessment

Version History