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mev-beta/docs/master-plan/08-dex-aggregators.md
Krypto Kajun 850223a953 fix(multicall): resolve critical multicall parsing corruption issues
- Added comprehensive bounds checking to prevent buffer overruns in multicall parsing
- Implemented graduated validation system (Strict/Moderate/Permissive) to reduce false positives
- Added LRU caching system for address validation with 10-minute TTL
- Enhanced ABI decoder with missing Universal Router and Arbitrum-specific DEX signatures
- Fixed duplicate function declarations and import conflicts across multiple files
- Added error recovery mechanisms with multiple fallback strategies
- Updated tests to handle new validation behavior for suspicious addresses
- Fixed parser test expectations for improved validation system
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- Resolved critical security vulnerabilities in heuristic address extraction
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2025-10-17 00:12:55 -05:00

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DEX Aggregator Integration Plan

Overview

This document outlines the implementation plan for integrating with DEX aggregators in the MEV bot. DEX aggregators source liquidity from multiple exchanges to provide better prices and lower slippage.

Major DEX Aggregators

1inch

  • Contract: 0x1111111254fb6c44bAC0beD2854e76F90643097d (mainnet)
  • Features: Multi-chain support, gas estimation, complex routing

ParaSwap

  • Contract: 0xDEF171Fe48CF0115B1d80b88dc8eAB59176FEe57
  • Features: Open-source API, multiple DEX support, price optimization

Matcha (0x)

  • Contract: Various proxy contracts
  • Features: Multi-DEX integration, API support, MEV protection

OpenOcean

  • Features: Cross-chain aggregation, gasless swaps
  • Contract: Multiple chain-specific contracts

Core Functions

Swap Functions

  • swap (executing trades)
  • unoswap (1inch specific)
  • multiswap (multi-hop routing)
  • buy (for reverse trades)

Quote Functions

  • getRate (price estimation)
  • getAmountsOut (with multi-DEX routing)
  • getSwapCalldata (for simulation)

Aggregation Functions

  • Route optimization across multiple DEXs
  • Gas cost comparison
  • Price impact minimization

Implementation Steps

  1. Create Aggregator struct implementing the Exchange interface
  2. Implement 1inch aggregation functionality
  3. Add ParaSwap integration
  4. Integrate Matcha/0x
  5. Add OpenOcean support
  6. Implement routing optimization algorithm
  7. Create gas estimation functions
  8. Add multi-chain support

Pricing Mechanisms

Multi-DEX Routing

  • Compare prices across multiple exchanges
  • Consider gas costs in profitability
  • Account for slippage across different platforms
  • Optimize route based on total cost (swap + gas)

Aggregation-Specific Considerations

  • Split trades across multiple DEXs to reduce slippage
  • Consider front-running protection
  • Account for different fee structures
  • Evaluate MEV protection mechanisms

Testing Plan

  1. Unit tests for each aggregator integration
  2. Price comparison accuracy testing
  3. Route optimization verification
  4. Gas estimation accuracy testing
  5. Multi-hop trade execution testing
  6. Edge case testing (large trades, multiple splits)
  7. Cross-chain functionality testing
  8. Performance comparison with direct DEX swaps

Performance Considerations

  • Optimize for lowest possible slippage
  • Minimize gas costs across all operations
  • Efficient routing algorithms
  • Cache commonly used routes
  • Batch operations where possible
  • Consider transaction complexity limits

Security Considerations

  • Validate aggregator contract addresses
  • Implement proper slippage protection
  • Verify routing safety
  • Consider MEV risks in aggregation
  • Sanitize data from multiple DEX sources

Integration with MEV Bot

  • Compare aggregator routes with direct swaps
  • Include gas costs in profitability calculations
  • Monitor aggregator-specific MEV opportunities
  • Track split trades as potential MEV targets
  • Consider front-running protection for aggregated trades
  • Optimize for different trade sizes and market conditions