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add CIP-57 updates
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harisang committed Dec 11, 2024
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# Solver rewards

The protocol is currently subsidizing the solver competition on Ethereum Mainnet (but not on Gnosis Chain nor Arbitrum One), by rewarding solvers on a weekly basis (currently, every Tuesday) with rewards paid in COW. Solvers are rewarded based on their performance as solvers (i.e., when participating in the standard solver competition) as specified by [CIP-20](https://snapshot.org/#/cow.eth/proposal/0x2d3f9bd1ea72dca84b03e97dda3efc1f4a42a772c54bd2037e8b62e7d09a491f), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-38](https://snapshot.org/#/cow.eth/proposal/0xfb81daea9be89f4f1c251d53fd9d1481129b97c6f38caaddc42af7f3ce5a52ec), and [CIP-48](https://snapshot.org/#/cow.eth/proposal/0x563ab9a66265ad72c47a8e55f620f927685dd07d4d49f6d1812905c683f05805). Solver rewards for participating in the price estimation competition and providing quotes that are needed for the gas estimates and limit price computations of market orders are specified in [CIP-27](https://snapshot.org/#/cow.eth/proposal/0x64e061568e86e8d2eec344d4a892e4126172b992cabe59a0b24c51c4c7e6cc33) and [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986).
The protocol is currently subsidizing the solver competition on all chains it operates on, by rewarding solvers on a weekly basis (currently, every Tuesday) with rewards paid in COW. Solvers are rewarded based on their performance as solvers (i.e., when participating in the standard solver competition) as specified by [CIP-20](https://snapshot.org/#/cow.eth/proposal/0x2d3f9bd1ea72dca84b03e97dda3efc1f4a42a772c54bd2037e8b62e7d09a491f), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-38](https://snapshot.org/#/cow.eth/proposal/0xfb81daea9be89f4f1c251d53fd9d1481129b97c6f38caaddc42af7f3ce5a52ec), [CIP-48](https://snapshot.org/#/cow.eth/proposal/0x563ab9a66265ad72c47a8e55f620f927685dd07d4d49f6d1812905c683f05805) and [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb). Solver rewards for participating in the price estimation competition and providing quotes that are needed for the gas estimates and limit price computations of market orders are specified in [CIP-27](https://snapshot.org/#/cow.eth/proposal/0x64e061568e86e8d2eec344d4a892e4126172b992cabe59a0b24c51c4c7e6cc33) and [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986).


:::note

For the interested reader, the main source of truth for the weekly payments to solvers is this [Dune dashboard](https://dune.com/cowprotocol/cow-solver-rewards). The dashboard is populated with data aggregated by scripts within the [solver-rewards](https://github.com/cowprotocol/solver-rewards) and [dune-sync](https://github.com/cowprotocol/dune-sync/) repositories.
For the interested reader, the main source of truth for the weekly payments to solvers is this [Dune dashboard](https://dune.com/cowprotocol/cow-solver-rewards). The dashboard is populated with data aggregated by scripts within the [solver-rewards](https://github.com/cowprotocol/solver-rewards) repository.

:::

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:::

The payment is capped from above and below using the function $$\textrm{cap}(x) = \max(-c_l, \min(c_u, x))$$ with $$c_l = 0.010 \;\textrm{ETH}$$ and $$c_u = 0.012 \;\textrm{ETH}$$.
The payment is capped from above and below using the function $$\textrm{cap}(x) = \max(-c_l, \min(c_u, x))$$ that is chain-specific, and is determined by the following values:
- Ethereum mainnet and Arbitrum: $$c_l = 0.010 \;\textrm{ETH}$$ and $$c_u = 0.012 \;\textrm{ETH}$$,
- Gnosis Chain: $$c_l = c_u = 10 \;\textrm{xDAI}$$.

Submitted scores that are non-positive will be ignored. If only one solution is submitted, $$\textrm{referenceQuality}$$ is set to zero. Formally, this corresponds to always considering the empty solution which does not settle any trades and has quality zero as part of the submitted solutions.

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The price estimation competition is a separate competition where solvers compete to provide the best response to a quote request. Quote requests look almost identical to single-order batch auctions, where there is only one order with a trivial limit price, and solvers propose executions of this order with the goal to maximize "out amount minus gas costs", in the case of a sell request, or minimize "in amount + gas costs" in the case of a buy request.

As specified in [CIP-27](https://snapshot.org/#/cow.eth/proposal/0x64e061568e86e8d2eec344d4a892e4126172b992cabe59a0b24c51c4c7e6cc33) and [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), solvers that participate in the price estimation competition are rewarded for each order that is within the market price, is associated with a quote that was computed as part of the price estimation competition, and was used in order to compute the limit price of the order. The protocol keeps track of the quote associated with each created order and the corresponding solver that provided the quote. If and when the order gets executed, the solver that provided the quote (which can be different than the solver that ended up executing the order) gets rewarded with $$min\{0.0006 ~ETH, 6 ~COW\}$$ where, again, the conversion from ETH to COW is done by using an up-to-date price.
As specified in [CIP-27](https://snapshot.org/#/cow.eth/proposal/0x64e061568e86e8d2eec344d4a892e4126172b992cabe59a0b24c51c4c7e6cc33), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986) and [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), solvers that participate in the price estimation competition are rewarded for each order that is within the market price, is associated with a quote that was computed as part of the price estimation competition, and was used in order to compute the limit price of the order. The protocol keeps track of the quote associated with each created order and the corresponding solver that provided the quote. If and when the order gets executed, the solver that provided the quote (which can be different than the solver that ended up executing the order) gets rewarded as follows:
- Ethereum mainnet: $$min\{0.0006 ~\textrm{ETH}, 6 ~\textrm{COW}\}$$,
- Arbitrum: $$min\{0.0002 ~\textrm{ETH}, 6 ~\textrm{COW}\}$$,
- Gnosis Chain: $$min\{0.15 ~\textrm{xDAI}, 6 ~\textrm{COW}\}$$,

where, again, the conversion from ETH and xDAI to COW is done by using an up-to-date price.

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