LiteRAG: Cost-Efficient Graph-Based Retrieval-Augmented Generation

Graph-based retrieval can improve multi-hop question answering, but existing approaches often incur high query-time costs and produce diffuse, oversized contexts that reduce generation efficiency. We present LiteRAG, a graph-based retrieval method that replaces expensive retrieval-time LLM control with query-conditioned algorithmic exploration and reasoning-chain context construction. On DistComp, a benchmark for multi-hop retrieval over distributed-systems papers, LiteRAG attains the highest overall quality among the evaluated methods (0.798) while reducing per-query latency by over 100 times and cost by over 99% relative to GraphRAG Global and DRIFT. On UltraDomain, it matches LinearRAG on overall quality while using about 14 times fewer tokens. An ablation study indicates that LiteRAG's query-adaptive thresholding and community-aware hub penalization are the main drivers of its token-efficiency gains.