We present RLM-Cascade, a proxy-layer system that applies speculative decoding at the response level to reduce LLM API costs without requiring model architecture access or a shared vocabulary. A fast, inexpensive draft model generates a candidate response; a capable verify model accepts, enhances, or is bypassed entirely depending on a lightweight complexity router. On a real-world agentic coding workload (Claude Code), RLM-Cascade achieves a draft-use rate of 88.8% across 125 production requests, reducing API cost by 45.8% relative to a direct Opus baseline. Counter-intuitively, the proxy also reduces end-to-end latency: median response time is 2,026 ms versus 3,698 ms for Native Opus -- a 1.83X speedup at p50 -- because the SKIPPED path (DeepSeek only, no Opus call) dominates the workload distribution. Quality matches or exceeds the Opus baseline: 100% pass rate on a 20-task Code/Math/Instruct benchmark versus 95% for Native Opus. We further describe a rule-based complexity router that selects the SKIPPED path for simple agentic turns and a hybrid tool-call strategy that bypasses the speculative pipeline for schema-critical tool-selection turns. RLM-Cascade is deployed in production as an enterprise AI infrastructure component and published as open source with a live metrics dashboard and Prometheus endpoint.
Efficient deployment of large language models (LLMs) in production forces a trade-off between accuracy and cost. Operators often default to a single model that is either expensive for easy queries or insufficient for hard ones. To address this challenge, we propose a two-stage cascaded solution. Stage 1 clusters incoming queries and assigns each cluster to its most cost-effective model. The cost budget for this routing process is set by an interpretable hyperparameter, tuned offline. Stage 2 adds a quality estimation (QE) cascade; when an output from Stage 1 is judged low-quality, the query is escalated to a stronger model. This ensures only hard or low-confidence cases reach the expensive models. On the test datasets, the cascaded system retains 97-99% of the strongest model's accuracy while reducing Time Per Output Token (TPOT). It requires only task-correctness labels and adapts to changes in the model pool without manual reconfiguration.
Large Language Model (LLM) generation remains expensive because autoregressive decoding calls the model once for each new token. Speculative decoding reduces this cost by drafting multiple tokens and verifying them with the target model in one step, but its speedup depends on how many drafted tokens are accepted. Parameter-free draft sources can propose long continuations at low cost in structured and agentic workloads, yet a cache match that looks promising at one generation step may have low payoff at the next. We propose Hybrid Verified Decoding, which predicts the accepted length of a cache draft before verification and uses this payoff estimate to choose between cache verification and a model-based drafter. Across three LLMs and sixteen datasets, Hybrid Verified Decoding is especially effective on agentic workflows, where it outperforms EAGLE3 in every setting with a 2.73x average speedup. Our analysis shows how prompt structure creates cache opportunities, how high-payoff cache drafts concentrate in a small part of the draft space, and how payoff-guided selection reduces sequential decoding work, pointing to runtime draft selection as a promising direction for speculative decoding.
Large language model (LLM) cascades answer easy requests with a small model and escalate selected requests to a larger model. Most routers prioritize examples on which the small model appears uncertain or likely to be wrong. This proxy ignores a decisive fact: escalation is useful only when the large model corrects the small model, and it is harmful when the large model replaces a correct answer with an incorrect one. We introduce Signed Rescue Routing (SRR), a budgeted routing method that predicts these two events separately and ranks requests by their difference. We show that this signed conditional gain is the Bayes-optimal routing score under a fixed escalation budget. SRR requires only the small model's output statistics at deployment and adds a lightweight two-head router. We evaluate SRR with Qwen3-4B and Qwen3-8B on TBD examples from MMLU, HellaSwag, and ARC-Challenge. Across the accuracy-compute curve, SRR reaches an area of TBD, compared with TBD for a learned small-model error predictor and TBD for entropy routing. These results show that predicting incremental value, rather than model uncertainty, is a simple and effective objective for efficient LLM cascades.