EBBO violation report for Rizzsolver on Mainnet

Technical
1

Reporting EBBO violation.

The execution price (excl. fee) was $2,739.53, while the market price at submission was $2,731.99 ($2,731.64 at T-5s). This results in ~28.8 bps slippage, which is excessive for a $99k trade size. Details: Address: 0x598715e2806C48CecD4B284217AFfD8e8Cd37f76

Order ID: 0x1ca9c6a7d70fad00e778b8e88e58d9cb504c47004aed8e9d9ab06c734ea269d6598715e2806c48cecd4b284217affd8e8cd37f7669206532 Tx Hash: 0xa4e28163e88f69cac499259cc08c29211e663a63cbeeb979eb001d419aec5d47

2 Likes
2

Tagging @felixhenneke @AndreaC for visibility

2 Likes
3

Thanks, will investigate internally and post an update here in the next 2-3 days.

while the market price at submission was $2,731.99 ($2,731.64 at T-5s).

Do you have any easy way to confirm this? Could you get that price at the beginning of the block, for example? EBBO does refer to onchain liquidity, this is why I am asking

4

Hey @doleyizufudevon_1523

we did some preliminary investigation and were not able to detect an EBBO violation.

  • The blocks between the creation of the quote of your order (block 23847570) and the settlement (block 23847590) contained significant changes of the price of ETH. As reference we used the onchain price on uniswap.
  • These changes in the price lead to unsuccessful execution in the auctions 11776051 and 11776053.
  • The order was executed as part of auction 11776055. At the time of the start of that auction, the order was not executable using uniswap. Only a solver doing private market making was willing to execute the order.
  • At the time of the execution, the price had shifted to be better than what the solver had bid.

image
image952×709 77.5 KB

To be eligible for a reimbursement for an EBBO violation the solver needs to provide a price which is worse than what one can receive onchain on every block between auction start and execution. This does not seem to be the case here, at least when only using uniswap liquidity.

If you are able to provide a better routing on each block between blocks 23847587 and 23847590 (see details here), you can post the worst of these routing here. We will then use this as certificate for an EBBO violation and will proceed with the process laid out here.

1 Like
5

Thanks for the investigation. I’ve managed to partially replicate your results. The on-chain price (i.e., the infinitesimal price at the start of block 23847590 or at position 13 for the same block) shows a price above 2740 for both the WETH/USDC and WETH/USDT liquid Uniswap pools. So, while execution was extremely poor for a liquid pair and moderate size, it’s highly likely that an EBBO violation did not occur.

2 Likes