RAIDEX Whitepaper

2. The Problem

Here's a story we've heard dozens of times:

"I built an AI that found a 2% arbitrage opportunity across Uniswap and SushiSwap. By the time I figured out how to securely manage keys, integrate with both DEXs, and protect against frontrunning... I'd spent 4 months and the opportunity was gone."

This is the reality for most builders. The DeFi opportunity is massive, but the infrastructure barrier is higher than it should be.

2.1 The Key Management Death Spiral

Your AI agent needs to sign transactions. That means private keys. Private keys mean:

• HSM infrastructure ($10k+/month)
• Multi-sig complexity
• Rotation policies
• Audit requirements
• One mistake = total loss

Most teams give up here. The ones that don't spend months building what should be a solved problem.

2.2 The Multi-Chain Nightmare

The best opportunities aren't on one chain. They're across Ethereum, Arbitrum, Base, Solana, and emerging L2s. Each chain means:

• Different RPC providers
• Different transaction formats
• Different DEX integrations
• Different gas models

Building for one chain is a project. Building for ten is a company.

2.3 You're Getting Front-Run

Every transaction you send to a public mempool is visible to MEV bots. They see your profitable trade and either front-run it (taking your opportunity) or sandwich it (extracting value from you).

$1.5 billion was extracted from DeFi users by MEV bots in 2024. Without private transaction routing, you're feeding the bots.

2.4 Death by Gas Fees

Found a 0.5% arbitrage? Great. But if gas costs 0.6% of your trade, you just lost money. Effective gas optimization requires:

• Real-time gas price monitoring
• Transaction bundling
• Timing optimization
• Flashbots/private mempool integration

This alone is a full-time engineering problem.

3. Why Now

Three trends are converging to create the perfect moment for RAIDEX:

3.1 The AI Explosion

GPT-4, Claude, and open-source models have made it trivial to build sophisticated AI agents. The bottleneck is no longer intelligence, it's execution. Agents can reason about markets, but they can't securely interact with them.

3.2 DeFi Has Matured

$100B+ TVL. Battle-tested protocols. Established liquidity. The infrastructure is ready for automation at scale. What's missing is the bridge between AI and on-chain execution.

3.3 The Infrastructure Gap

There's Alchemy for RPC. Fireblocks for custody. Flashbots for MEV. But there's no unified layer that brings it all together for AI agents. Every team rebuilds the same infrastructure. That's the gap we're filling.

3.4 AI Model Agnostic

We're intentionally model-agnostic. Today it's GPT-4 and Claude. Tomorrow it's Llama 4 or whatever comes next. RAIDEX is the execution layer, not the intelligence layer. Your agents bring their own brains. We provide the arms and legs to interact with DeFi.

This separation is strategic: AI models evolve fast, and we evolve with them. When a new model drops that's 10x better at market analysis, your RAIDEX-powered agents can use it immediately. No waiting for us to integrate. No vendor lock-in.

4. Our Solution

One API call. That's it. Your agent gets everything it needs to start raiding DeFi:

const agent = await raidex.deploy({
  strategy: "arbitrage",
  chains: ["ethereum", "base", "arbitrum"],
  capital: "10000",
  mevProtection: true
});

// That's it. Your agent is live.

Behind that simple call, RAIDEX handles four massive infrastructure challenges:

4.1 Secure Execution Environment

Your agent gets its own secure wallet, powered by HSMs and MPC. No private keys to manage. No security audits to pass. No $10k/month custody fees. Just deploy and go.

4.2 Unified Multi-Chain API

Write once, raid everywhere. One API gives you access to Ethereum, Base, Arbitrum, Solana, and every major DEX. No chain-specific code. No separate integrations.

4.3 Private Transaction Routing

Every transaction goes through private mempools and direct validator connections. MEV bots can't see you. They can't front-run you. Your alpha stays yours.

4.4 Intelligent Gas Management

We monitor gas prices in real-time, bundle transactions, and time execution for optimal cost. That 0.5% arbitrage? We make sure gas doesn't eat your profit.

4.5 Why Not Build It Yourself?

Fair question. You could wire together your own bot + private RPC + DEX aggregators. Here's why that's harder than it sounds:

You can build it yourself. But should you? If your edge is strategy, not infrastructure, let us handle the plumbing.

5. Technical Architecture

5.1 API Gateway

The API Gateway handles authentication, rate limiting, and request routing. All requests are validated and signed before being processed by downstream services.

5.2 Strategy Engine

Pre-built strategies for common DeFi operations (arbitrage, liquidations, yield optimization) are available out of the box. Developers can also deploy custom strategies using our SDK.

5.3 Secure Enclave

Private keys are generated and stored within hardware security modules (HSMs). Transaction signing occurs within secure enclaves, ensuring keys are never exposed to our systems or external parties.

6. Security Model

Security is foundational to RAIDEX. We're building infrastructure that handles real money, and we treat that responsibility seriously.

6.1 Key Management

• HSM-Backed Keys: All signing keys are generated and stored in hardware security modules. Keys never exist in plaintext outside the HSM.
• MPC Signing: High-value transactions use multi-party computation, requiring multiple independent parties to approve.
• No Key Exposure: Our systems never have access to private keys. We sign transactions, not export keys.

6.2 Operational Security

• Rate Limiting: Per-agent and per-account limits prevent runaway execution
• Circuit Breakers: Automatic halt if transaction volume or losses exceed thresholds
• Audit Logging: Complete immutable audit trail for all operations
• Real-time Monitoring: 24/7 automated monitoring with alerting

6.3 Security Roadmap

7. Raid Strategies

RAIDEX provides several pre-built strategies that agents can deploy immediately:

7.1 Arbitrage

Identify and execute price discrepancies across DEXs within and across chains. Our system monitors thousands of pairs in real-time and executes atomic arbitrage when opportunities arise.

7.2 Liquidations

Monitor lending protocols for undercollateralized positions and execute liquidations profitably. We maintain direct connections to major lending protocols for minimal latency.

7.3 Yield Optimization

Automatically move assets between yield-generating protocols to maximize returns. Our algorithms factor in gas costs, withdrawal fees, and opportunity costs.

7.4 Custom Strategies

Developers can implement custom strategies using our SDK. The SDK provides primitives for market data, order execution, and risk management.

8. Business Model

Clear, transparent pricing. No hidden fees. You know exactly what you're paying for.

8.1 Pricing Tiers

8.2 Transaction Fees

On top of subscription, we charge a small fee on successful transactions:

• Starter: 0.3% of transaction value
• Pro: 0.15% of transaction value
• Enterprise: Volume-based, negotiated

Pay in RAID tokens for 20% discount on all fees.

8.3 Strategy Marketplace

Strategy creators can publish to the marketplace and earn when others deploy their strategies:

• Creators set their own fee (typically 10-30% of profits)
• RAIDEX takes 15% platform fee on marketplace transactions
• Payouts in RAID tokens, weekly

8.4 Infrastructure Costs

We cover the underlying infrastructure: HSM hosting, RPC nodes, validator connections, monitoring. You pay a predictable subscription + usage fee. No surprise cloud bills.

9. Tokenomics

The RAID token aligns incentives between the protocol, agents, and the community.

9.1 Token Utility

• Protocol Fees: Pay transaction fees at a discount when using RAID vs stablecoins
• Staking: Stake RAID to access priority execution and reduced latency tiers
• Governance: Vote on protocol upgrades, fee structures, and new chain integrations
• Strategy Marketplace: Creators earn RAID when others deploy their strategies

9.2 Token Distribution

Team tokens vest over 4 years with a 1-year cliff. Early backer tokens vest over 2 years. Community allocation unlocks progressively through protocol milestones.

9.3 Supply & Launch

Total supply: 1,000,000,000 RAID (fixed, no inflation). Token generation event planned for Q2 2026 alongside public launch. Initial circulating supply will be approximately 15% to ensure healthy liquidity while maintaining long-term alignment.

10. Governance

RAIDEX handles value execution. That requires clear answers about control and trust.

10.1 Current Control Model (Pre-Decentralization)

At launch, RAIDEX operates as a centralized service. We're transparent about this:

• HSM Infrastructure: Controlled by RAIDEX Ltd. Keys are in HSMs we operate, but cannot extract.
• Upgrades: Protocol upgrades are deployed by the core team with 48-hour notice.
• Marketplace Moderation: We review and approve strategies before listing.
• Fee Changes: Pricing changes announced 30 days in advance.

10.2 Path to Decentralization

Centralization is a starting point, not the destination. Our decentralization roadmap:

10.3 Trust Assumptions

Until full decentralization, users trust RAIDEX to:

• Not extract value from transactions (enforced by reputation + audits)
• Maintain HSM security (enforced by SOC2 compliance, third-party audits)
• Execute transactions as specified (enforced by immutable audit logs)

We publish monthly transparency reports detailing transaction volumes, security incidents (if any), and governance decisions. Trust is earned, not assumed.

11. Roadmap

12. Current Status

Where we are today. No hype, just facts.

12.1 What's Built

12.2 What's In Progress

12.3 What's Not Built Yet

12.4 Traction

• 500+ developers on the waitlist
• 0 external funding (bootstrapped)
• 0 production deployments yet (we're pre-launch)

We're honest about where we are. The foundation is built. The product is not yet live. Public testnet opens Q1 2026. Production launch Q2 2026.

13. Team

RAIDEX is bootstrapped and built by a founder with two decades of shipping production systems.

13.1 Funding

RAIDEX is fully bootstrapped. No VC money, no token pre-sales, no external pressure. This means we ship on our timeline, optimize for users (not investors), and have complete control over the product direction. We'll consider strategic partnerships when they add clear value to the platform.

13.2 Advisors & Partnerships

We're early. No advisors or partnerships to announce yet. We're focused on building a product worth partnering with before seeking strategic relationships. Announcements will come when there's substance behind them.

13.3 Transparency Commitment

We believe in building in public:

• Monthly development updates on our blog
• All smart contracts open-sourced before mainnet
• Public GitHub with core SDK and integration examples
• Audit reports published in full

14. Risks & Considerations

We believe in transparency about challenges. Building infrastructure for AI agents in DeFi is hard. Here's an honest assessment of the risks:

14.1 Execution Risk

Abstracting multi-chain complexity into a single API is technically ambitious. Many projects have promised "one API to rule them all" and struggled to deliver. We're mitigating this by:

• Starting with 2 chains (Ethereum, Base) and proving the model before expanding
• Building incrementally with each chain integration battle-tested before the next
• Partnering with existing infrastructure providers rather than rebuilding everything

14.2 MEV Protection Complexity

Private transaction routing requires relationships with validators and block builders. This is technically complex and requires significant engineering. Our approach:

• Integration with existing private mempool providers (Flashbots Protect, MEV Blocker)
• Direct partnerships with block builders on supported chains
• Fallback to public mempool with clear user disclosure when private routing unavailable

14.3 Smart Contract & Security Risk

Despite best practices, smart contracts may contain vulnerabilities. Our security roadmap:

• Private testnet live now for internal testing
• Public testnet launching Q1 2026 with bug bounty program
• Two independent security audits planned before mainnet (firms TBA)
• Gradual mainnet rollout with conservative transaction limits

14.4 Regulatory & Compliance Risk

The regulatory landscape for DeFi and AI agents is evolving rapidly. We take this seriously.

General Approach

• RAIDEX provides infrastructure, not financial advice or managed trading
• Users maintain custody through their own wallets; we facilitate execution, not hold assets
• We are a software provider, not a broker or exchange

UK Compliance

• Monitoring FCA guidance on crypto asset promotions and DeFi activities
• Enterprise tier will require KYC in line with MLR 2017 requirements
• UK-based entity for UK operations under consideration

EU Compliance (MiCA)

• Preparing for MiCA implementation (full effect 2024-2025)
• RAID token structure designed with utility-first approach
• Legal assessment ongoing for CASP licensing requirements

Operational Safeguards

• Geo-restrictions for prohibited jurisdictions (OFAC, etc.)
• KYC/AML for institutional tier users as required by applicable law
• Transaction monitoring for suspicious activity patterns
• Legal counsel (crypto-specialized) engaged for ongoing compliance

14.5 Systemic Risk

Automated agents can amplify market movements. If many agents pursue similar strategies (e.g., liquidations), it could exacerbate cascades. Mitigations:

• Per-agent and platform-wide rate limits on transaction volume
• Circuit breakers that pause execution during extreme volatility
• Strategy diversification encouraged through marketplace incentives
• Real-time monitoring with automatic intervention capabilities

14.6 Market & Protocol Risk

• Market Risk: DeFi strategies involve market exposure. Past performance does not guarantee future results.
• Protocol Risk: Interactions with third-party protocols carry their own risk profiles. A vulnerability in Uniswap, Aave, etc. could affect agents using those protocols.
• Bridge Risk: Cross-chain operations involve bridge protocols, which have historically been targets for exploits.

Bottom line: We're building something hard. We're being honest about the challenges. And we're committed to shipping carefully, transparently, and with user safety as the top priority.

15. Conclusion

The DeFi opportunity is massive. $100B+ in TVL. Billions in daily volume. Thousands of arbitrage opportunities every hour. But until now, capturing that value required being a trading firm with a 50-person engineering team.

We're changing that. RAIDEX is the missing infrastructure layer that lets any developer, any AI builder, any strategy creator deploy autonomous agents into DeFi. One API call. No key management nightmares. No MEV extraction. No months of infrastructure work.

The teams that move first will have an advantage. Early agents will find the best opportunities. Early builders will shape how AI interacts with DeFi.

The infrastructure is ready. The opportunity is here. Let's raid.

16. Future Scope

Our initial focus is DeFi on EVM chains and Solana. But the infrastructure we're building has broader applications:

• CEX Integration: Unified API extending to major centralized exchanges for hybrid strategies
• RWA Markets: As real-world assets move on-chain, agents can participate in tokenized securities and commodities
• Cross-Domain Arbitrage: Opportunities between DeFi, CEX, and traditional markets
• Prediction Markets: Agent participation in decentralized prediction and betting markets

We're building infrastructure that lasts. The execution layer for whatever comes next.

Changelog