Core Features

1. Multi-Protocol Liquidity Aggregation

Overview

MonBridge queries and aggregates liquidity from multiple DEX protocols simultaneously, providing unified access to fragmented liquidity sources.

Supported Protocols

• Constant Product Market Makers (CPMM)

• Concentrated Liquidity Models

• Multiple DEX Router Standards

• Various Fee Tiers and Pool Configurations

Key Benefits

• Consolidated Access: Query multiple venues from single transaction

• Best Pricing: Automatic routing to venue with optimal pricing

• Liquidity Aggregation: Access combined liquidity across protocols

• Automatic Fallback: If one venue unavailable, routes through alternatives

• Venue Redundancy: Never dependent on single liquidity source

Implementation

• Direct on-chain queries to DEX factory and router contracts

• Real-time reserve and pricing data

• Continuous venue monitoring and health tracking

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2. Intelligent Trade Routing

Multi-Hop Path Analysis

MonBridge evaluates complex multi-hop swap sequences:

Direct Path:

Token A → DEX → Token B (1 hop)

Multi-Hop Path:

Token A → DEX1 → Token C → DEX2 → Token B (2+ hops)

Benefit: Accesses deeper liquidity through intermediate tokens, reducing slippage for large trades.

Route Optimization Algorithm

• Evaluates all possible paths

• Calculates price impact for each route

• Selects route minimizing total cost (slippage + fees)

• Factors in venue reliability and health

Automatic Split Trading

For large orders, MonBridge can split execution across multiple venues:

Total Order: 10,000 USDC → Token X

Strategy 1: Single Venue
10,000 USDC → DEX1 → 5% slippage = 9,500 Token X

Strategy 2: Split Across 2 Venues  
5,000 USDC → DEX1 → 2% slippage = 4,900 Token X
5,000 USDC → DEX2 → 2% slippage = 4,900 Token X
Total = 9,800 Token X (better outcome)

Dynamic Route Selection

• Impact-triggered splitting: Activates when single venue impact exceeds threshold

• Configurable split limits: Maximum number of splits per order

• Automatic optimization: Determines optimal split distribution

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3. Advanced Slippage Management

Slippage Configuration Framework

Three-Tier System:

1. Base Slippage: Minimum acceptable slippage (e.g., 50 BPS = 0.5%)

2. Impact Multiplier: Adjustment based on calculated price impact

3. Maximum Slippage: Hard ceiling for safety (e.g., 500 BPS = 5%)

User-Defined Thresholds

Traders specify maximum acceptable slippage:

Swap USDC for DAI
Max Slippage: 100 BPS (1%)

If actual slippage would exceed 100 BPS → Transaction reverts
User protection against unexpected price movement

Impact-Responsive Adjustment

• Contract calculates expected price impact

• Adjusts acceptable slippage based on impact

• Larger trades automatically get higher slippage allowance

• Prevents reverting on legitimate large orders

Real-Time Price Validation

Before execution:

1. Get user's minimum output amount

2. Query DEX for actual output

3. Validate actual meets or exceeds minimum

4. Transaction only proceeds if validated

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4. Liquidity Quality Assessment

Minimum Liquidity Requirements

• Enforces USD-denominated liquidity thresholds

• Prevents trading through illiquid pools

• Configurable per venue or globally

• Reduces slippage by using quality venues

Venue Health Tracking

Metrics Tracked:

• Success rate of executed swaps

• Failure count for each venue

• Total volume routed through venue

• Last successful swap timestamp

• Current active status

Example:

Router A: 999 successful swaps, 1 failure = 99.9% success
Router B: 900 successful swaps, 100 failures = 90% success
Router C: 10 successful swaps, 10 failures = 50% success

Routing prioritizes Router A, uses B as fallback, C disabled

Automatic Venue Suspension

• Configurable failure threshold (e.g., 10 failures)

• Venues automatically disabled when threshold exceeded

• Prevents cascading failures through bad venues

• Manual re-enabling by protocol owner

Dynamic Activation/Deactivation

• Real-time venue status monitoring

• Automatic routing around disabled venues

• Manual override capability

• Transparent venue status queryable

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5. Security & Protective Mechanisms

Reentrancy Protection

check → effect → interaction pattern
State locked during execution
Prevents recursive malicious calls
Protects user funds and contract state

Access Control

• Owner authorization for sensitive operations

• Role-based permissions

• Cannot be overridden by users

• Prevents unauthorized configuration changes

Circuit Breakers

• Emergency pause mechanism

• Halts new swaps during security events

• Preserves existing state

• Owner-activated only

Oracle-Based Price Protection

TWAP (Time-Weighted Average Price):

• Averages prices over time intervals (e.g., 30 minutes)

• Detects flash loan manipulation attempts

• Prevents use of artificially moved prices

• Configurable deviation thresholds

Flash Loan Prevention:

Flash Loan Attack Scenario:
1. Attacker borrows large token amount
2. Artificially moves price
3. Creates favorable swap conditions
4. Attempts swap through MonBridge

TWAP Protection:
- Historical price averaging detects unnatural movement
- Swap rejected if price deviates from TWAP too much
- Attack fails, attacker loses loan

Fee-on-Transfer Token Support

• Detects tokens implementing transfer fee mechanics

• Handles non-standard ERC20 implementations

• Calculates net amounts accurately

• Prevents failures on exotic tokens

Token Blacklisting

• Maintains list of suspicious/malicious tokens

• Prevents swaps involving blacklisted tokens

• Protects users from scam tokens

• Configurable by protocol governance

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6. Fee-on-Transfer Token Compatibility

Token Type Detection

Standard ERC20 Token:
Send 100 tokens → Recipient receives 100 tokens

Fee-on-Transfer Token:
Send 100 tokens → 2% fee → Recipient receives 98 tokens

Handling Mechanisms

• Automatic fee detection

• Fee percentage recording

• Special routing for compatibility

• Accurate amount calculation despite fees

Use Case

User wants: 10,000 SHIB → USDC
SHIB is fee-on-transfer (2% fee)

Without MonBridge:
Send 10,000 SHIB → Contract applies 2% fee → Only 9,800 SHIB received
Swap fails or results in wrong amounts

With MonBridge:
Detects fee-on-transfer mechanism
Routes through compatible venue
Accounts for 2% fee in amounts
Swap succeeds with correct output

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7. Transparent Economic Model

Protocol Fee Structure

User Swap: 1,000 USDC → DAI
Expected Output: 1,000 DAI (assuming 1:1 price)

Fee Divisor: 1000 (means 0.1% fee)
Protocol Fee: 1,000 USDC * 0.1% = 1 USDC

Result:
- MonBridge Routes: 999 USDC through DEX
- User Receives: ~999 DAI (after DEX fees)
- MonBridge Accumulates: 1 USDC to treasury

Multi-Denomination Fee Accumulation

ETH Swaps:

User swaps ETH → Token
Fee collected in ETH
Stored in protocol contract: feeAccumulatedETH

Token Swaps:

User swaps Token A → Token B
Fee collected in Token A
Stored in mapping: feeAccumulated[tokenA]

Fee Transparency

• All fees visible before swap execution

• User knows exact amount to be charged

• No hidden or surprise fees

• Fees auditable on-chain

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8. Router Health Monitoring

Continuous Performance Tracking

Each Router Tracked:
├─ isActive: Currently enabled
├─ lastSuccessfulSwap: Timestamp of last success
├─ failureCount: Consecutive failures
└─ totalVolume: Cumulative volume routed

Automatic Response

During Swap Execution:
1. Attempt through primary router
2. If fails:
   - Increment failure counter
   - Log failure timestamp
   - If failures exceed threshold → Disable router
3. Try next available router
4. Continue until successful or all routers exhausted

Health Status Dashboard (On-Chain Queryable)

Router A: ACTIVE (999 swaps, 1 failure, 1M volume)
Router B: ACTIVE (900 swaps, 0 failures, 950K volume)
Router C: DISABLED (Exceeded failure threshold)
Router D: ACTIVE (500 swaps, 2 failures, 480K volume)

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9. Emergency Controls

Pause Mechanism

• Owner can pause contract instantly

• Prevents new swaps during security events

• Does not affect existing state

• Can be resumed after threat resolved

Manual Router Management

• Owner can manually add/remove routers

• Enables rapid response to venue issues

• Override automatic systems if needed

• Emergency bypass capability

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Feature Comparison: MonBridge vs. Alternatives

Feature	Centralized Agg.	MonBridge
Liquidity Aggregation	Yes	Yes
Multi-Hop Routing	Yes	Yes
Split Trading	Sometimes	Yes
Slippage Control	Yes	Advanced
Server Dependency	Critical	None
API Reliability	Variable	N/A
Censorship Resistant	No	Yes
24/7 Availability	Not guaranteed	Guaranteed
Code Transparency	No	Full
Flash Loan Protection	Sometimes	Yes (TWAP)
Fee Structure	Hidden	Transparent
Venue Redundancy	Limited	Automatic

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Next: See Trade Execution Models for detailed explanation of how trades execute through MonBridge.