You DO NOT need a DDS for this, all you need is to add item attack fire bonus (I'm not sure if that's the name but you will find it under items, it's with an icon orb of fire).
Once you add that ability, you need to calculate and subtract those 50% from your unit's base damage (cause the ability adds those 50% splash damage to your base dmg too). Let's say your unit's base damage is 10, you make the ability to deal 5 splash damage and it also gives +5 dmg to your base dmg, so you subtract it.
If you want to make unit's attack damage to divide to nearby units on impact then all you need to do is make the unit's attack type to splash and adjust the AOE as you wish.