[OKX DEX Aggregator] DEX Selection and Integration Policy
1. Purpose & Scope
1.1 Purpose
This Standard Operating Procedure establishes the selection criteria and integration process for on-chain liquidity sources within the OKX DEX Aggregator routing algorithm. The procedure ensures that integrated liquidity sources meet quality, security, and business requirements while maintaining optimal price competitiveness for users.
1.2 Scope
This Policy applies to all potential DEX integrations and covers the complete lifecycle from initial assessment through final integration approval.
2. Background & Process Overview
2.1 Background
As a DEX Aggregator, our platform relies on on-chain, public liquidity to power routing algorithms that identify optimal pricing between token pairs. To ensure integrated liquidity sources can support user transactions with maximum efficiency, this policy establishes standardized selection criteria and procedures for evaluating and integrating on-chain liquidity sources.
2.2 Process Overview
The DEX integration process follows a three-phase approach:
Phase 1: Business Requirement Assessment
Phase 2: Technical and Liquidity Integration Assessment
Phase 3: Integration Implementation and Quality Assurance
3. Selection Criteria and Assessment Process
3.1 Phase 1: Business Requirement Assessment
The proposed DEX must satisfy at least one of the following business requirements:
New Chain Support: Integration supports expansion to a new blockchain network identified as strategically valuable.
Algorithm Optimization and Price Competitiveness: Integration enhances routing efficiency (e.g., order splitting, multi-hop query, and Based Token) and price discovery.
3.2 Phase 2: Technical and Liquidity Integration Assessment
3.2.1 Liquidity and Volume Requirements
The following criteria serve as guidelines for evaluating whether a protocol demonstrates sufficient financial depth and trading activity to support meaningful user transactions. OKX retains discretion to integrate protocols that do not satisfy one or more guidelines where compensating factors exist, or to decline integration of protocols that satisfy all guidelines where other material concerns are identified.
TVL Guideline: Protocols with a Total Value Locked (TVL) of at least $1 million averaged over 30 days are generally considered to demonstrate sufficient liquidity depth. OKX may integrate protocols below this threshold where other indicators of liquidity quality or user demand are present, and may decline to integrate protocols above this threshold where other concerns exist.
Transaction Volume: Demonstrate consistent trading volume indicating active usage
Liquidity Depth: Sufficient liquidity across major trading pairs to support meaningful transactions
3.2.2 Competitive Benchmarking
Integration decisions are informed by comprehensive analysis of market leaders and competitive positioning. Competitive analysis is used to identify liquidity sources that may be candidates for Phase 2 assessment. Competitive positioning alone does not constitute a sufficient basis for integration approval.
Compare against top DEX aggregators (leading industry aggregators)
Evaluate supported chains and DEX coverage relative to competitors
Assess volume and TVL metrics against industry standards
Identify opportunities to close competitive gaps
3.2.3 Decentralization Assessment
Protocols must operate with a sufficient degree of full decentralization and non-custodial architecture to ensure user asset security and transaction integrity. OKX assesses decentralization on a protocol-by-protocol basis, taking into account the nature and scope of any administrative controls, upgrade mechanisms, and governance structures. Protocols with material centralization risks are subject to enhanced review and may be subject to ongoing monitoring conditions.
3.2.3.1 Non-Custodial Architecture Requirements:
The protocol must have a non-custodian architecture, meaning at no point do user assets come under the custody of the protocol.
The protocol must not have access to user funds at any point of the transaction.
The protocol will not have the ability to alter, halt, or re-route transactions.
3.2.3.2 Decentralized Control Standards
The protocol shall execute instructions via autonomous smart controls, without the ability for intervention by any intermediary or centralized actors.
The protocol shall not permit discretion by a natural person to interfere with how the transaction will work.
3.2.3.3 Atomic Transaction Requirements:
The protocol shall execute transactions through atomic transaction all-or-nothing mechanisms. This means either the entire transaction is completed successfully for both parties, or it is fully reverted with no partial execution or residual risk.
The protocol must execute swap solely through open, transparent, and permissionless smart contracts deployed on public blockchains.
3.3 Phase 3: Integration Implementation and Quality Assurance
3.3.1 Shortlisting and Selection Process
Protocols that pass Phase 2 assessment undergo systematic evaluation and approval steps:
Shortlisting: Protocols passing Phase 2 assessment are first shortlisted through our automatic assessment system.
Selection: Shortlisted protocols will undergo manual selection and filtering to ensure comprehensive quality and consistency checks are completed.
Approval: The list of selected protocols will be submitted to OKX DEX team for formal approval
3.3.2 Integration Implementation
Following team lead approval, protocols then undergo technical integration across the following parallel workstreams:
Smart Contract Integration: An initial study will be conducted on the smart contract architecture of the liquidity source, followed by the DEX team building the corresponding Adaptor contract to integrate with the liquidity source. Once built, the Adaptor contract will be put up for internal contract audit review.
On-chain Information Deciphering: Real-time updates implementation for liquidity depth monitoring, contract risk assessment, and contract upgradeability analysis (conducted in parallel with smart contract integration).
Once both are completed, the protocol will be integrated into the routing algorithm with necessary adjustments and optimizations.
3.3.3 Testing and Quality Assurance
Testing and quality assurance will be conducted by the OKX DEX Team upon completion of integration to ensure product readiness and integration reliability before final deployment.
3.4 Post-Integration Monitoring and Maintenance
3.4.1 Performance Monitoring
Ongoing assessment of key metrics ensures integrated DEXs continue to meet performance standards and business objectives.
Regular assessment of TVL and volume metrics
Competitive positioning analysis
User transaction success rates and efficiency metrics
3.4.2 Review Triggers
Specific conditions and events that necessitate immediate reassessment of integrated DEX partnerships. Where a review trigger indicates a material security risk or significant deterioration in protocol quality, OKX reserves the right to suspend routing to the affected protocol pending the outcome of reassessment, without prior notice to Users.
Significant changes in protocol TVL or volume
New competitive threats or opportunities
Technical issues or security concerns
Strategic business requirement changes
3.4.3 Recurring Review
Yearly assessments are conducted to evaluate whether integrated protocols continue to satisfy the Phase 2 selection criteria, including decentralization standards, TVL and volume thresholds, and security requirements.