Potential bug with auctions being settled late #380
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fhenneke
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Aug 15, 2024
This PR adds a grace period of one block to the deadline for settling on chain. It also removes the use of block deadlines in computing fees and other quantities. The PR changes two things: - Settlements are still rewarded if solvers settle one block after the deadline. This change is implemented to not punish solvers for slightly suboptimal transaction canceling in the driver. The alternative would be to implement very cautios canceling which might negatively impact revert rates. - The use of block deadlines for setting `surplus`, `fee`, and `execution_cost` to zero was removed. For every successful settlemen, even if after the deadline by many blocks, those values will just be copies of the respective values in the `settlement_observations` table. The change to `surplus`and `execution_cost`does not have any effect on solver payments. Those values are only used for analytics. The change to `fee` has an effect since it enters the computation of `network_fee_eth`. Before the change, the network fee was computed to be negative and essentially equal to `-protocol_fee_eth`. On the one hand, network fees were already removed from slippage using per order data. On the other hand, slippage is also modified by adding the value of network fees to reimburse solvers the cost of execution. Since network fees were computed to be negative protocol fees, instead of paying solvers those network fees they paid us protocol fees. See #380. With the proposed change, network fees are always paid as part of slippage to the solver. This is consistent with how slippage is handled in general. The estimated impact on solver from adding a grace period is an increase in overall rewards by about 1.48 ETH in the accounting period 2024-08-06--2024-08-13. The impact of the second change on slippage is not estimated precisely. The overcharging of protocol fees amounts to 0.6 ETH. The missing reimbursement of network fees is not estimated. See [this Dune query](https://dune.com/queries/3987946). The changes should be mirrored to dune-sync and data for the accounting period starting on 2024-08-13 should be re-synced.
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There might be a bug with slippage/fee reimbursements.
When auctions are settled late by a solver, they do not receive a reward but instead are penalized as if the settlement had not happened. This is intended behavior. Looking at Dune records shows that there might be an issue/unintended handling of fees in such cases:
The (network) fee seems to be negative in such cases. This might have an impact on total payments to solvers.
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