PRIME: Efficient Algorithm for Token Graph Routing Problem
🤖 AI Summary
This work addresses the inefficiency of querying large-scale dynamic asset exchange paths on blockchains, where edge weights are defined by concave exchange functions. To tackle this challenge, the authors propose PRIME, a two-stage co-optimization framework. In the first stage, an efficient pruning-based graph search identifies high-potential paths; in the second stage, token routing is formulated for the first time as a strongly convex optimization problem, solved via a novel adaptive sign gradient method (ASGM) with linear convergence guarantees. Experiments on real-world Ethereum transaction data demonstrate that PRIME improves execution prices by up to 8.42 basis points over industrial baselines such as Uniswap while reducing computational overhead by 96.7%. The framework has been successfully deployed and validated in a production environment at a hedge fund.
Application Category
📝 Abstract
Optimizing asset exchanges on blockchain-driven platforms poses a novel and challenging graph query optimization problem. In this model, assets represent vertices and exchanges form edges, recasting the graph query task as a routing problem over a large-scale, dynamic graph. However, the existing solutions fail to solve the problem efficiently due to the non-linear nature of the edge weights defined by a concave swap function. To address the challenge, we propose PRIME, a two-stage iterative graph algorithm designed for the Token Graph Routing Problem (TGRP). The first stage employs a pruned graph search to efficiently identify a set of high-potential routing paths. The second stage formulates the allocation task as a strongly convex optimization problem, which we solve using our novel Adaptive Sign Gradient Method (ASGM) with a linear convergence rate. Extensive experiments on real-world Ethereum data confirm PRIME's advantages over industry baselines. PRIME consistently outperforms the widely-used Uniswap routing algorithm, achieving up to 8.42 basis points (bps) better execution prices on large trades while reducing computation up to 96.7%. The practicality of PRIME is further validated by its deployment in hedge fund production environments, demonstrating its viability as a scalable graph query processing solution for high-frequency decentralized markets.
Problem
Research questions and friction points this paper is trying to address.
Token Graph Routing Problem
blockchain asset exchange
graph query optimization
concave swap function
dynamic graph routing
Innovation
Methods, ideas, or system contributions that make the work stand out.
Token Graph Routing Problem
Adaptive Sign Gradient Method
Convex Optimization
Pruned Graph Search
Decentralized Exchange
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