FAQ & Glossary
Frequently Asked Questions
General Protocol Questions
Q: How is MonBridge different from traditional DEX aggregators?
A: Traditional aggregators depend on centralized servers for pricing and routing. If their servers go down, the entire service stops. MonBridge runs entirely on-chain through smart contracts—no centralized API dependency. If one venue fails, the protocol automatically routes to alternatives. The service continues operating permanently, regardless of external infrastructure failures.
Q: Is MonBridge truly decentralized?
A: Yes. The protocol is:
On-Chain Logic: All routing decisions execute as immutable smart contracts
No APIs: Direct blockchain queries instead of centralized quote servers
Permissionless: Anyone can call swap functions; no entity can block users
Permanent: Smart contracts exist indefinitely on blockchain
Verifiable: All decisions are transparent and auditable
Q: Can MonBridge be shut down?
A: No. The protocol:
Exists as code on the blockchain (permanent)
Cannot be modified without protocol governance
Continues operating regardless of who deployed it
Would continue operating even if the founding team disappeared
Technical Questions
Q: What venues does MonBridge support?
A: Currently:
Uniswap V2 and V3 (main focus)
Curve (future)
Other V2-compatible protocols (future)
More venues will be added based on community demand and liquidity depth.
Q: How often are routers/venues added?
A: Currently owner-managed (bootstrap phase). Venues are added when they meet requirements:
Sufficient liquidity ($1M+ USD minimum)
Security audited
Community requested
Strategic fit
Future: DAO will vote on new venue integration.
Q: What about slippage protection?
A: MonBridge provides multi-layer slippage control:
User-Defined Limits: You set maximum acceptable slippage before swap
Base Slippage: 50 BPS minimum threshold
Impact-Based Adjustment: Larger trades get higher allowance (realistic)
Hard Maximum: 500 BPS ceiling for safety
TWAP Validation: Price oracle prevents flash loan manipulation
Q: Are my funds ever at risk?
A: Risk factors:
Smart Contract Risk: Code has been designed with safety (reentrancy protection, overflow handling)
Venue Risk: If a DEX has issues, MonBridge routes to alternatives
User Error Risk: Setting unrealistic slippage or wrong token path
NOT at Risk: Protocol cannot steal funds or send to wrong addresses
All transactions are atomic (all-or-nothing).
Q: How does flash loan protection work?
A: TWAP (Time-Weighted Average Price) oracle:
Tracks average price over 30 minutes
Detects abnormal price movements
Rejects swaps if price deviates >5% from historical average
Prevents attackers from exploiting temporary price manipulations
Q: What's a split trade?
A: For very large orders, MonBridge divides them across multiple venues:
Single venue might have 5% slippage on $1M order
Two venues might have 1% slippage each ($500K each)
Result: Better execution by spreading liquidity
Automatic—happens if impact detection triggers it.
Fee Questions
Q: What fees does MonBridge charge?
A:
Protocol Fee: 0.1% of swap amount
No Hidden Fees: That's it. Venue fees are already included in their quotes
Visible Before Swap: You see exact fee before confirming
Example:
Q: Why 0.1% fee? Are other aggregators cheaper?
A:
Traditional aggregators: 0.05% (but rely on servers)
MonBridge: 0.1% (permanently decentralized)
Total cost comparison:
Q: Where do collected fees go?
A:
Currently: Owner-controlled multisig treasury
Monthly Reports: Fee accumulation publicly visible
Uses: Team operations, audits, infrastructure, community programs
Future: DAO votes on treasury allocation
Q: Can fees be changed?
A:
Currently: Owner can adjust
Realistically: Will be voted on by DAO governance
Never: Fee can't be increased without community approval
Core Principle: Fees remain transparent and justified
Use Case Questions
Q: Is MonBridge good for small trades?
A: Yes, especially for:
First-time swappers (user-friendly)
Finding best price (automatic)
Avoiding server outages (guaranteed uptime)
May not be ideal if you want:
Absolute lowest fee (might prefer Uniswap directly if direct pair has best price)
The tradeoff: 0.1% fee but guaranteed best venue
Q: Is MonBridge good for large trades?
A: Yes. Advantages:
Split execution reduces slippage dramatically
Multi-hop routing finds better paths
Example: $10M trade could save $100K+ through split routing
Q: Can institutions use MonBridge?
A: Absolutely:
Large order support (split trading)
Transparent routing (all visible on-chain)
24/7 availability (no maintenance windows)
Multiple integration options (contract calls, SDKs)
Q: Do I need special wallet?
A: No. Use any Web3 wallet:
MetaMask
Ledger
Coinbase Wallet
Any wallet supporting smart contract interaction
Security Questions
Q: Is MonBridge safe?
A: Security measures:
✅ Reentrancy protection (prevents recursive attacks)
✅ Slippage validation (you control acceptable loss)
✅ Flash loan protection (TWAP oracle)
✅ Token blacklisting (prevents scam tokens)
✅ Fee-on-transfer handling (handles exotic tokens)
✅ Circuit breaker (emergency pause capability)
✅ Venue health monitoring (routes around failing venues)
What we don't protect against:
User sending to wrong address (user error)
Extremely unrealistic slippage settings (user error)
Participating in rug pulls (user due diligence)
Q: Has the code been audited?
A:
Phase 1 (Launch): Initial security review and testing
Year 1: Professional security audit (in planning)
Bug Bounty: Community can report issues (TBD)
Open Code: Anyone can review smart contract
Q: What if there's a smart contract bug?
A:
Protocol owner can pause contract
Prevents new swaps during incident
Existing funds protected
Community votes on recovery process
Q: Is there a rug pull risk?
A:
Protocol is on-chain permanently (can't be deleted)
Owner cannot access user funds
Fees accumulated separately (visible)
DAO governance prevents owner abuse
Financial Questions
Q: Can I make money using MonBridge?
A: Indirect ways:
Save on slippage vs. manual trading (more profitable trades)
Better execution for arbitrage strategies
Lower costs improve margins for trading bots
Direct ways (future):
DAO token staking rewards (planned Year 2)
Liquidity provider incentives (planned)
Community participation rewards (planned)
Q: How much volume does MonBridge handle?
A:
Year 1 (Realistic): $100-150K annual revenue (~$30-50M daily volume)
Year 2: $720K-1.8M annual (~$250-500M daily volume)
Year 3: $3.6-7.2M annual (~$1-2B daily volume)
These are realistic, not optimistic projections.
Q: What's MonBridge's competitive advantage?
A:
No Server Dependency: Always available (competitors can go down)
Decentralization: Community-governed (vs. centralized competitors)
Transparency: All decisions on-chain and verifiable
Reliability: 24/7 guaranteed, no maintenance windows
Governance Questions
Q: Who controls MonBridge?
A:
Currently: Owner (founding team)
Year 2: Hybrid governance (owner + community votes)
Year 3+: Full DAO governance (community token holders)
Q: Can I vote on protocol decisions?
A:
Currently: Community can provide input on Discord/forums
Year 2: DAO token released for voting
Year 3+: All major decisions by community vote
Q: How are urgent security decisions made?
A:
Owner can pause protocol immediately
Can adjust risk parameters down (stricter safety)
Must disclose reason immediately
Community votes on sustained action
Can't make risky changes without community approval
Future Questions
Q: What's the roadmap?
A: See Roadmap document for detailed timeline.
Key milestones:
Year 1: Multi-protocol support, community education
Year 2: Multi-chain deployment, governance token launch
Year 3: MEV protection, cross-chain swaps, full DAO governance
Q: Will MonBridge support [my favorite blockchain]?
A:
Planned: Polygon, Arbitrum, Optimism, Avalanche, Base, Solana
Likely: Other major chains based on community demand
Process: DAO votes on chain priority once governance is live
Q: Will MonBridge support more DEX protocols?
A:
Yes, gradually as market demands
New venues must meet security and liquidity requirements
Community votes on priority
Currently focused on Uniswap (V2 & V3)
Glossary
A
Atomic Execution: All-or-nothing execution. Either the entire swap completes or fails; no partial execution possible.
AMM (Automated Market Maker): Protocol that uses algorithms instead of order books to price assets. Uniswap is the most famous example.
B
Basis Points (BPS): 1 BPS = 0.01%. So 100 BPS = 1%.
Bridge: Technology to move tokens from one blockchain to another.
C
Circuit Breaker: Emergency mechanism to pause a protocol (like a circuit breaker in electronics).
CPMM (Constant Product Market Maker): AMM that maintains formula: reserve_A * reserve_B = constant. Uniswap V2 uses this.
D
DEX (Decentralized Exchange): Protocol allowing token swaps without custody of user funds. Uniswap, Curve, etc.
DeFi (Decentralized Finance): Financial protocols running on blockchain without traditional intermediaries.
Delegation: Giving your voting power to another address to vote on governance decisions.
E
ERC20: Standard interface for tokens on Ethereum (and similar blockchains).
Epoch: Time period for governance voting or reward distribution.
F
Fee-on-Transfer Token: Non-standard ERC20 that deducts a fee when tokens are transferred.
Flash Loan: Uncollateralized loan that must be repaid within the same transaction. Requires TWAP protection to prevent abuse.
Fragmented Liquidity: Liquidity split across many venues, making swaps expensive.
G
Gas: Fee paid to execute transactions on blockchain. Higher complexity = higher gas cost.
Governance: Process for making protocol decisions. Currently owner-controlled, moving toward DAO.
Governance Token: Token giving holders voting rights on protocol decisions.
L
Liquidity: Available tokens in a pool available for swapping.
Liquidity Pool: Smart contract holding reserves of two tokens for automated swaps.
Liquidity Provider (LP): User depositing tokens into a pool to earn fees from swaps.
M
MEV (Maximal Extractable Value): Profit extracted by reordering transactions. MonBridge aims to minimize MEV risk.
Multi-Hop Swap: Swap requiring multiple intermediate steps. Example: USDC → ETH → SHIB (2 hops).
Multisig (Multi-Signature Wallet): Wallet requiring multiple approvals before executing transactions. Currently controls MonBridge owner functions.
O
Oracle: Source of price information. MonBridge uses TWAP oracle for flash loan protection.
Overflow/Underflow: Mathematical error when numbers exceed maximum (overflow) or go below zero (underflow). MonBridge has protections against this.
P
Price Impact: Percentage price movement caused by your own trade. Larger trades have larger impact.
Protocol Fee: Fee charged by MonBridge (0.1%) separate from venue fees.
Q
Quote: Estimated output amount for a given input amount.
R
Reentrancy: Vulnerability where a contract calls itself recursively before completing initial execution. MonBridge has reentrancy protection.
Router: Smart contract enabling swaps (usually an AMM's router contract).
S
Slippage: Difference between expected price and actual execution price. MonBridge helps minimize slippage through aggregation.
Smart Contract: Self-executing code on blockchain with predefined rules.
Split Trade: Large order divided across multiple venues to reduce slippage.
Staking: Locking tokens to participate in governance and earn rewards (planned).
T
Token Blacklist: List of tokens MonBridge won't route through due to security concerns.
TWAP (Time-Weighted Average Price): Average price over a time period. MonBridge uses TWAP to prevent flash loan attacks.
U
Uniswap V2: Popular DEX using constant product formula. MonBridge can route through it.
Uniswap V3: Improved Uniswap with concentrated liquidity. MonBridge supports it.
V
Venue: A DEX protocol that MonBridge can route trades through.
Volatility: Measure of price fluctuations. Higher volatility = more unpredictable prices.
W
Web3: Decentralized internet using blockchain and smart contracts.
WETH (Wrapped ETH): ERC20 token representing 1 ETH. Used for swaps that require ERC20 standard.
Z
Zero-Hop Swap: Not applicable to MonBridge (all swaps go through at least one venue).
Technical Acronyms
BPS
Basis Points
Slippage, fees measured in BPS
DAO
Decentralized Autonomous Organization
Community governance
DEX
Decentralized Exchange
What MonBridge routes through
DeFi
Decentralized Finance
Broader ecosystem
ERC20
Ethereum token standard
Token type MonBridge supports
LP
Liquidity Provider
User in liquidity pools
MEV
Maximal Extractable Value
Sandwich attack risk (TWAP protects)
TWAP
Time-Weighted Average Price
Flash loan protection mechanism
V2/V3
Uniswap versions
Protocols MonBridge supports
WETH
Wrapped Ethereum
Native token wrapper for ERC20
Common Mistakes to Avoid
User Mistakes
❌ Setting slippage too low: 0.01% slippage is unrealistic for most trades ✅ Better: Use 0.5-2% depending on trade size and volatility
❌ Sending tokens to wrong address manually: MonBridge can't recover sent funds ✅ Better: Always verify addresses; use wallet UI for confirmations
❌ Expecting instant execution during network congestion: Blockchain is slower during high gas ✅ Better: Transactions will execute; just takes longer
❌ Assuming lower fee = better deal: 0.05% fee + 0.5% slippage = worse than 0.1% fee + 0.05% slippage ✅ Better: Total cost matters, not individual fees
Developer Mistakes
❌ Hardcoding routes: Liquidity changes constantly ✅ Better: Query fresh routes before every swap
❌ Ignoring slippage protection: Your function could execute at bad price ✅ Better: Always set reasonable slippage minimums
❌ Calling swap without approval: Contract can't transfer tokens without approval ✅ Better: Always call approve() before swap()
Verification: What's Actually in the Protocol
Features Confirmed in Smart Contract:
✅ Multi-protocol support (Uniswap V2 and V3)
✅ Fee accumulation (ETH and token tracking)
✅ Slippage configuration (base, multiplier, max)
✅ Router health monitoring (active status, failure count, volume)
✅ TWAP oracle configuration (time interval, deviation, enforcement)
✅ Split trading support (enabled flag, min impact, max splits)
✅ Fee-on-transfer token tracking
✅ Token blacklisting capability
✅ Reentrancy protection (state lock)
✅ Pause/resume circuit breaker
✅ Owner authorization (onlyOwner modifier)
✅ Liquidity validation config
✅ Multi-swap types (ETH→Token, Token→ETH, Token→Token)
✅ Event logging for all swaps
Not in Phase 1 (Planned for Later):
❌ MEV protection (beyond TWAP)
❌ Cross-chain swaps
❌ Intent-based routing
❌ Governance token (Year 2+)
❌ Advanced order types (Limit, TWAP, DCA orders)
For more details, see the full documentation or check the smart contract code.
Last updated