Mondex Swap Whitepaper

Mondex Swap is a non-custodial decentralized exchange (DEX) aggregator built specifically for the Monad blockchain. It automatically compares token prices across multiple DEXes in real-time and routes trades through the protocol offering the best rate, saving users money on every swap.

The platform combines the efficiency of aggregation with a gamified points system that rewards users for consistent trading activity. Top traders qualify for an upcoming token airdrop, aligning user incentives with platform growth.

Key Highlights:

• ✓ Compares prices across 4 major DEXes (Uniswap V2/V3, Nabla, PancakeSwap)
• ✓ Non-custodial: your tokens never leave your wallet
• ✓ Zero additional fees beyond protocol swap fees
• ✓ Points-based rewards system with 5 tiers (Bronze → Diamond)
• ✓ 15% of token supply reserved for community airdrop
• ✓ Testnet live, mainnet launching Q1 2026

DEX Fragmentation: The Monad blockchain has multiple decentralized exchanges (Uniswap, Nabla, PancakeSwap), each with independent liquidity pools. This fragmentation means:

• • Different token pairs have different prices on different DEXes
• • Users manually check multiple platforms to find best rates
• • Suboptimal trades result in financial loss for users
• • Time wasted comparing prices across platforms

Current Solution Gap: While aggregators exist on other blockchains (1inch on Ethereum, Jupiter on Solana), Monad lacks a native aggregation solution. Users are forced to either:

• • Manually compare prices (time-consuming, error-prone)
• • Accept suboptimal rates (costly)
• • Miss out on rewards/incentives (no engagement layer)

Market Opportunity: As Monad grows in adoption and TVL (Total Value Locked), demand for efficient trading infrastructure will increase significantly. The first aggregator to establish network effects through rewards will capture the majority of trading volume.

Mondex Swap solves price fragmentation through intelligent routing and automated price discovery.

How It Works:

1. 1. Real-time Price Comparison: Queries all 4 supported DEXes simultaneously to fetch current prices
2. 2. Smart Routing: Calculates optimal swap path considering liquidity, fees, and slippage
3. 3. Best Execution: Routes the swap to the DEX with the best rate
4. 4. Instant Settlement: Tokens go directly from your wallet to the DEX and back (non-custodial)
5. 5. Points Reward: Automatically earns points based on trading volume

Key Features:

• ✓ Multi-DEX Support: Uniswap V2, Uniswap V3, Nabla Finance, PancakeSwap
• ✓ Non-Custodial: We never hold your tokens
• ✓ Zero Additional Fees: Same fees as using DEX directly
• ✓ Slippage Control: Set your own slippage tolerance
• ✓ Gamification: Earn points and climb leaderboards
• ✓ Instant Swap: Sub-second quote generation

Smart Contract Architecture:

The aggregator consists of two main components:

• Router Contract: Receives user requests, queries DEX prices, executes optimal swap
• Points Contract: Tracks trading volume and calculates point allocation with multipliers

Supported Protocols:

• Uniswap V2: Constant product market maker, high liquidity
• Uniswap V3: Concentrated liquidity, fee-tier based
• Nabla Finance: Stablecoin-optimized AMM
• PancakeSwap: Multi-chain DEX with native Monad support

Security Measures:

• ✓ Slippage protection (transactions revert if slippage exceeds tolerance)
• ✓ Flash loan guards (protected against price manipulation)
• ✓ Re-entrancy guards (prevents recursive attacks)
• ✓ Formal verification (planned for mainnet)

Scaling & Performance:

• • Quote generation: <1 second
• • Transaction processing: Monad blockchain speeds (~100ms blocks)
• • Gas optimization: Batched calls to minimize on-chain operations

Token Utility:

• Governance: Vote on platform upgrades and feature decisions
• Fee Discounts: Token holders get reduced swap fees
• Staking Rewards: Earn yield by staking tokens
• Platform Revenue: Share in platform fees and growth

Allocation:

• Public Sale: 25% (250M tokens) - Community fundraising
• Community Airdrops: 15% (150M tokens) - Distributed to early adopters
• Community Treasury: 20% (200M tokens) - DAO-controlled long-term
• Liquidity Provisioning: 20% (200M tokens) - DEX liquidity and market-making
• Operations & Development: 15% (150M tokens) - Team and infrastructure
• Early Contributors: 5% (50M tokens) - Advisors and partners (vesting)

Vesting Schedules:

• Public Sale: Immediate unlock upon purchase
• Community Airdrops: Immediate via airdrop
• Treasury: Governance-controlled gradual release
• Liquidity: 18 month linear vesting
• Contributors: 3 year vesting with 6 month cliff
• Operations: 4 year linear vesting with 1 year cliff, starting Q1 2026

Funds raised through this public sale will be allocated as follows:

Points Formula:

Multipliers:

• Trading Frequency: 1.05x at 5 trades → 1.5x at 100+ trades
• Consistency Bonus: 1.1x for 2+ active weeks → 1.4x for 12+ weeks
• Early Adopter Bonus: Extra bonus for trading during testnet phase
• Stablecoin Penalty: Stablecoin pairs earn only 30% of normal points

Why Square Root Formula?

The square root formula ensures fair distribution without whale dominance. Example: A user with $10K volume gets ~10,000 base points, while a user with $100K volume gets ~31,600 points (not 1,000,000). This rewards consistent traders alongside high-volume traders.

Tier System:

Airdrop Details:

• Total Allocation: 15% of token supply for community
• Snapshot Date: Q2 2026 (date TBA)
• Distribution: Pro-rata based on tier and points
• Eligibility: Minimum 10 points required
• Claim Period: 6 months from snapshot

Monad Blockchain Overview:

Monad is an Ethereum-equivalent L1 blockchain designed for maximum performance and scalability. It features single-slot finality, optimistic parallel execution, and can process high throughput while remaining EVM-compatible.

Market Opportunity:

• DeFi Growth on Monad: As TVL increases, demand for efficient DEX aggregation grows
• First-Mover Advantage: No established aggregator on Monad yet
• User Acquisition: Early aggregators capture disproportionate market share
• Trading Volume: Even 1% of Ethereum DEX volume would be substantial

Competitive Landscape:

Other blockchains have proven the aggregator model:

• Ethereum: 1inch ($1B+ volume daily) - First-mover captured majority
• Solana: Jupiter (dominant aggregator) - 80%+ market share
• Polygon: QuickSwap (integrated aggregator)
• Monad: No dominant player yet (opportunity window)

Total Addressable Market (TAM):

Assuming conservative adoption: If Monad captures even 0.1% of global DEX volume, the aggregator handles billions in annual volume. Current Ethereum DEX volume: $2+ trillion annually.

The platform is designed to transition to decentralized governance, where token holders direct the future of the protocol.

Governance Structure (Post-Mainnet):

• Token-Weighted Voting: 1 token = 1 vote
• Proposal Submission: Minimum token threshold to submit proposals
• Voting Period: 7 days voting windows
• Quorum: Minimum 4% participation required
• Execution Delay: Time lock before approved proposals execute

Governance Areas:

• Protocol upgrades and feature additions
• Smart contract parameter adjustments (fees, multipliers)
• Treasury allocation and fund management
• New DEX integrations and partnerships
• Community proposals and initiatives

Security Measures Implemented:

• ✓ Slippage protection and price impact limits
• ✓ Flash loan protection mechanisms
• ✓ Re-entrancy guards on all interactions
• ✓ Timelocks for critical function changes
• ✓ Emergency pause functionality

Audit Timeline:

• Q4 2025: Internal security review and testing
• Q1 2026: External professional security audit by reputable firm
• Post-Audit: Public bug bounty program launch

Risk Mitigation:

• • Testnet-only operations until audit complete
• • Phased mainnet rollout with volume caps
• • 24-hour emergency pause capability
• • Transparent communication of any issues

Regulatory Considerations:

• • Non-custodial protocol (users maintain control)
• • Community governance (decentralized decision-making)
• • Compliance with local regulations (user responsibility)
• • Open-source code (transparent operations)

User Responsibilities:

Users are responsible for complying with laws in their jurisdiction. We recommend consulting with legal counsel before participating.