Transaction Classification

Overview

Monmouth's transaction classification system automatically detects the intent behind every transaction. This happens at the protocol level — not via smart contracts or external oracles.

Classification powers routing, guardrail enforcement, and reputation tracking.

Classification Types

Every transaction is classified into one of five categories:

Type	Description	Example
Swap	Token exchange operations	ETH → USDC via DEX
Transfer	Direct asset movement	Send 1 ETH to 0x...
Lending	Deposit, borrow, repay, withdraw	Deposit USDC into lending pool
Staking	Validator delegation and rewards	Stake ETH for yield
NFT	Minting, transfers, marketplace	Mint NFT, list for sale

Confidence Scoring

Each classification includes a confidence score (0.0 to 1.0):

const classification = await wallet.classifyTransaction(tx)
 
console.log(classification)
// {
//   type: 'swap',
//   confidence: 0.96,
//   details: {
//     fromToken: 'ETH',
//     toToken: 'USDC',
//     estimatedValue: '1842.50 USDC',
//     protocol: 'uniswap-v3',
//   }
// }

Confidence Thresholds

Configure minimum confidence for different actions:

const wallet = new MonmouthWallet({
  classification: {
    minConfidence: 0.85,          // Reject below 85%
    requireManualAbove: '5 ETH',  // Human review for high-value
    autoExecuteBelow: '0.1 ETH',  // Auto-execute small txs
  },
})

Classification Methods

Heuristic Classification

Function selector matching against known contract interfaces:

0x38ed1739 → swap (Uniswap V2)
0x5ae401dc → swap (Uniswap V3)
0xa9059cbb → transfer (ERC-20)
0x42842e0e → nft-transfer (ERC-721)

Semantic Classification

For complex or multi-step transactions, the classification engine analyzes:

Target contract type
Calldata structure
Token flow patterns
Historical patterns from the agent

Multi-Step Classification

Complex operations (e.g., flash loan + swap + repay) are classified as composite:

// {
//   type: 'composite',
//   confidence: 0.91,
//   steps: [
//     { type: 'lending', action: 'borrow', confidence: 0.95 },
//     { type: 'swap', confidence: 0.97 },
//     { type: 'lending', action: 'repay', confidence: 0.94 },
//   ]
// }

Integration with Other Primitives

Classification feeds into:

Guardrails: Block or flag transactions based on type
Reputation: Track success rate per classification type
Intent Resolution: Validate that resolved intent matches classification
Validation: Verify agent capability for classified operation type

On-Chain Interface

interface IClassification {
    function classifyTransaction(
        bytes calldata txData
    ) external view returns (
        uint8 classificationType,
        uint256 confidence
    );
}