Bounty For Quoting With CoW AMM's

CoW Grants Program
1

Summary

The total allocated budget is defined to be 20k USDC/DAI, the grant should last for 4 weeks. During this period all solvers that respond to quote requests using prices from a CoW AMM will receive a share of 5,000 USDC/DAI per week depending on the amount of quote requests they responded to using prices from a CoW AMM relative to the total amount of quotes that use CoW AMM’s.

Introduction

With the launch of CoW AMM’s many liquidity providers have deposited funds into CoW AMM’s. Additionally, many solvers have integrated these CoW AMM’s into their solvers and use these to settle user orders. Often providing better prices than external AMM’s.

However, when submitting quotes through the CoW Swap UI the prices of these CoW AMM’s are not used for quoting, sometimes leading to users seeing slightly worse prices than what can be offered through these CoW AMM’s.

This bounty is inteded to motivate solvers to use the prices from CoW AMM’s when responding to quotes.

Bounty Specifications

The bounty will start on the 4th of February at 00:00 UTC and will run for 4 weeks. Ending on the 4th of March at 00:00 UTC.

Solvers will receive a percentage of the $5,000 for each week based on the amount of quote requests they respond to with CoW AMM’s relative to the total amount of quote responses that use a CoW AMM in that week.

In other words, if solver A responds to 1,000 quote requests by using prices from a CoW AMM and solver B responds to 1,000 quote requests by using prices from a CoW AMM, then both solvers will receive $2,500 USDC/DAI for that week because each solver generated 50% of the total quotes that use CoW AMM’s.

Scope

  • Mainnet
  • Arbitrum
  • Gnosis Chain
  • Base
2

The grant has been posted to snapshot.

3

Hi,
Thanks for the grant application. Sorry, but we must push back on this grant, highlighting the following:

  1. The grant is not submitted in accordance with the template prescribed by which Grants DAO has mandate.
  2. Grants DAO is currently on a mandate renewal (CIP is in voting), to which the outcome of this vote isn’t known for another few days, which conflicts with the start date of this requested grant.
  3. There does seem to be some need to accommodate these style of grants (whereby there’s a pool of funds and then these are distributed). But, the grantee needs to agree to the Terms and Conditions of the grant - and we want to avoid problems that we have had before where solvers expected payment on different chains etc. This is why we have terms and conditions.

So, moving forward, I would suggest:

  1. Adjust the grant request to be in accordance with the template. We can then allocate budget if the application passes approval from the Grants Committee…
  2. For the solver to claim, they must agree to the terms and conditions as well - there needs to be some thought as to how this is communicated.
  3. Payment amounts and specification is to be denominated in xDAI (payment on Gnosis Chain). Additionally, why can we not allocate some $COW to this instead of depleting only the xDAI budget?
  4. The grant should establish a clear mechanism by which it can be verified that respective solvers have achieved said targets (what data source has provenance etc).

For general overview, the grants application process may be reviewed here: Applying to the Grants Program | CoW Protocol Documentation (including links to the application template).

mfw78

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