routing-dex-trades

# Routing DEX Trades ## Overview This skill provides optimal trade routing across decentralized exchanges by aggregating quotes from multiple sources (1inch, Paraswap, 0x), discovering multi-hop routes, calculating split orders for large trades, and assessing MEV risk. It helps traders execute at the best prices while minimizing slippage and gas costs. ## Prerequisites Before using this skill, ensure you have: - Python 3.9+ with `httpx`, `pydantic`, and `rich` packages - Network access to aggregator APIs (1inch, Paraswap, 0x) - Optional: API keys for 1inch and 0x (higher rate limits) - Environment variables configured in `{baseDir}/config/settings.yaml` - Understanding of DeFi trading concepts (slippage, price impact, MEV) ## Instructions ### Step 1: Configure API Access 1. Copy settings template: `cp {baseDir}/config/settings.yaml.example {baseDir}/config/settings.yaml` 2. Add optional API keys: ```yaml api_keys: oneinch: "your-1inch-api-key" # Optional, increases rate limits zerox: "your-0x-api-key" # Optional ``` 3. Set preferred chain: `ethereum`, `arbitrum`, `polygon`, or `optimism` ### Step 2: Quick Quote (Single Best Price) Use Bash(crypto:dex-router) to get the best price across aggregators: ```bash python {baseDir}/scripts/dex_router.py ETH USDC 1.0 ``` This returns the single best route with price, gas cost, and effective rate. ### Step 3: Compare All DEXs For detailed comparison across all sources: ```bash python {baseDir}/scripts/dex_router.py ETH USDC 5.0 --compare ``` Output includes quotes from each aggregator with: - Output amount and rate - Price impact percentage - Gas cost in USD - Effective rate (after gas) ### Step 4: Analyze Routes (Multi-Hop Discovery) For trades where multi-hop might be cheaper: ```bash python {baseDir}/scripts/dex_router.py ETH USDC 10.0 --routes ``` Discovers and compares: - Direct routes (single pool) - Multi-hop routes (2-3 pools) - Shows hop-by-hop breakdown with cumulative impact ### Step 5: Split Large Orders For whale-sized trades ($10K+), optimize across multiple DEXs: ```bash python {baseDir}/scripts/dex_router.py ETH USDC 100.0 --split ``` Calculates optimal allocation: ``` Split Recommendation: 60% via Uniswap V3 (60 ETH → 152,589 USDC) 40% via Curve (40 ETH → 101,843 USDC) ───────────────────────────────────────────── Total: 254,432 USDC (vs. 251,200 single-venue) Improvement: +1.28% ($3,232 saved) ``` ### Step 6: MEV Risk Assessment Check sandwich attack risk before executing: ```bash python {baseDir}/scripts/dex_router.py ETH USDC 50.0 --mev-check ``` Returns risk score and recommendations: - LOW: Safe to execute via public mempool - MEDIUM: Consider private transaction - HIGH: Use Flashbots Protect or CoW Swap ### Step 7: Full Analysis Combine all features for comprehensive analysis: ```bash python {baseDir}/scripts/dex_router.py ETH USDC 25.0 --full --output json ``` See `{baseDir}/references/examples.md` for detailed output examples. ## Output The router provides: **Quick Quote Mode:** - Best price across aggregators - Output amount and effective rate - Gas cost estimate - Recommended venue **Comparison Mode:** - All venues ranked by effective rate - Price impact per venue - Gas costs compared - Liquidity depth indicators **Route Analysis:** - Direct vs. multi-hop comparison - Hop-by-hop breakdown - Cumulative price impact - Gas cost per route type **Split Mode:** - Optimal allocation percentages - Per-venue amounts - Total vs. single-venue comparison - Dollar savings estimate **MEV Assessment:** - Risk score (LOW/MEDIUM/HIGH) - Exposure estimate - Protection recommendations - Alternative venues (CoW Swap, etc.) ## Trade Size Recommendations | Trade Size | Strategy | Notes | |------------|----------|-------| | < $1K | Direct quote | Gas may exceed savings from optimization | | $1K - $10K | Compare + routes | Multi-hop can save 0.1-0.5% | | $10K - $100K | Split analysis | 2-3 way splits reduce impact | | > $100K | Full + MEV + private TX | Consider OTC or algorithmic execution | ## Error Handling See `{baseDir}/references/errors.md` for comprehensive error handling. Common issues: - **API Rate Limited**: Wait 60s or use API key for higher limits - **Quote Expired**: Refresh before execution; quotes valid ~30s - **No Route Found**: Token may have low liquidity; try larger DEXs - **Network Timeout**: Retry or check aggregator status ## Examples See `{baseDir}/references/examples.md` for detailed examples including: - Basic ETH→USDC swap comparison - Multi-hop route discovery - Large order splitting - MEV-protected execution paths ## Resources - [1inch API Documentation](https://docs.1inch.io/) - [Paraswap API](https://developers.paraswap.network/) - [0x API](https://0x.org/docs/api) - [Flashbots Protect](https://docs.flashbots.net/flashbots-protect/overview) - [CoW Swap](https://docs.cow.fi/)