This repository contains a script that uses the Cow Protocol API as well as the Gnosis Scan API to compute solver rewards of the solver competition of CoW Protocol on Gnosis Chain.
7500 xDAI have been allocated per week for solver rewards, with the following distribution:
- 20% for the price estimation competition; this corresponds that 1,500 XDAI per week
- 30% for performance rewars for the solver competition; this corresponds to 2,250 XDAI per week. To compute these, we use the second-price auction mechanism described in CIP-38, with adjusted upper and lower caps.
- 50% for consistency for the solver competition; this corresponds to 3,750 xDAI per week. Moreover, the best 3 solutions in each auction are rewarded 20% more than the rest. What this means is that for each auction, all valid solutions except for the best 3 receive 1 participation token each, while the best three receive 1.2 participation tokens each. We then compute the total number of participation tokens given out, and we distribute the 3,750 xDAI proportional to the number of participation tokens each solver has received.
The rewards mechanism follows CIP-38, with the following caps being currently chosen: 30 xDAI as an upper cap for performance and -5 xDAI as a lower cap for penalties. Rewards for each class (performance, consistency, quoting) are then rescaled to match the budget.
The script requires access to the orderbook db. One first needs to use the virtual environment:
python3.11 -m venv venv
. venv/bin/activate
pip install -r requirements.txt
In order to execute the script for the week starting on, e.g., April 9th, 2024, one needs to execute
python -m src.main_script 2024 4 9
and a csv file in the /out folder is generated with the transfers.
There is also an optional argument that can be passed, which removes the transfers (not the accounting) of the rewards of the Gnosis solvers. E.g., usage
python -m src.main_script 2024 4 9 ignore_gnosis_transfers