Thanks @voyta.eth for these ideas. I definitely forgot to mention the added risk (in both categories) for high value trades.
While it is definitely a goal to incorporate trade size into this formulation, at the moment we do not have a reliable price feed, there are still about 1.6% of our trades for which we cannot assign value (query). Unvalued trades are those for which we cannot assign a value to both the buy token and sell token. Here is a list of token pairs for all unvalued trades in the firs three months of the reward program.
Having made this query, I was actually under the impression that the proportion of unvalued trades was much higher. So, if we were willing to accept this margin of error, we could actually work with this!
If we were to allocate COW based on trade size what do you envision this might look like? Here is a table describing a naive approach:
Trade size reward tiers:
- below 1k => 30 COW
- between 1k and 10k → 35 COW
- between 10k and 100k → 40 COW
- between 100k and 1M → 45 COW
- above 1M → 50 COW
Is this similar to what you had in mind? Or were you also hoping to account for comparison of how deep the liquidity is for the token pair?