# Grant Application: Settlement Wrapper Contract **URL:** \ **Category:** Funded Grants\ **Tags:** complete, grant-funded\ **Created:** [June 12, 2024, 5:20am UTC](https://forum.cow.fi/t/grant-application-settlement-wrapper-contract/2453 "2024-06-12T05:20:43Z")\ **Posts on this page:** 8\ **Page:** 1
**Author:** ![meetm](https://avatars.discourse-cdn.com/v4/letter/m/b77776/32.png) [@meetm](https://forum.cow.fi/u/meetm)\ **Post date:** [June 12, 2024, 5:20am UTC](https://forum.cow.fi/t/grant-application-settlement-wrapper-contract/2453/1 "2024-06-12T05:20:44Z")
# CoW Grant - Settlement Wrapper Contract ## Author I am [meetmangukiya](https://github.com/meetmangukiya). I am a software developer, have been in DeFi and web3 space for over 3 years now. I also have familiarity with CoW protocol technicals. ## Grant Category Decentralization ## Grant Description ### Problem With the recent passage of [CIP-44: Reduced bonding requirements](https://snapshot.org/#/cow.eth/proposal/0x1b6f1171633ec3d20c4370db37074aa1bd830486d4d0d6c26165915cc42d9412), CoW DAO has made the determination to allow solvers a permissionless experience - with reduced bonding requirements - when participating in the batch auction, and crucially settling orders. Notably CIP-44 does not change the prevailing **protocol** bonding requirements, and in effect CIP-44 represents CoW DAO providing conditional permissionless access to the **CoW DAO bonding pool**. The “sub-bond” minimum deposit defined in CIP-44 is: - $50k in yield bearing stable coins or ETH - 500k COW With this ramping to a target deposit of: - $100k in yield bearing stable coins or ETH - 1M COW ### Scope Implement a `SubPoolFactory` that has deterministic deployment (`salt = msg.sender`) and: 1. The `SubPoolFactory` **SHOULD** be authed by `msg.sender` to spend their nominated tokens 2. When deploying a `SubPool`, it is funded to at _least_ the minimum with the representative dollar values checked against a ChainLink oracle (restricted to collateral that has ChainLink oracles - and no multi-collateralisation) 3. Within the `SubPoolFactory`, set the `msg.sender` as a sub-bonded solver. This should be accompanied by an event, such as `Vouch`. **NOTE** : Having deterministic address be bound to `msg.sender` allows for programmatic mapping between the solver’s private key and their sub-pool. Ensuring that the sub-pool contract address is the target of MEV Blocker rebates becomes more observable on-chain. The `SubPoolFactory` also provides a means for a keeper to update the total fiat value of collateral held by a sub-pool and subsequently given a threshold (time and value) - allow them to be disconnected / deauthed. The `SubPool` should also have the ability to be fined by the DAO (whereby the specified collateral is transferred to the DAO). This `fine` mechanism should be present on the `SubPoolFactory` and authorised appropriately. The `SubPoolFactory` then also provides a “wrapper” / “facade” around the `GPv2Settlement` contract such that it provides: ```auto interface Auth { /** * Allows `usr` to perform root-level functions */ function rely(address usr) external auth; /** * Denies `usr` from being able to perform root-level functions */ function deny(address usr) external auth; /** * Determine if `usr` is able to perform root-level functions * @dev May be mplemented as a public `mapping (address => bool)`; */ function wards(address usr) external view returns (bool); } interface SubPool is Auth { /** * Determine the amount required to `heal` the pool * @return amt of collateral and cowAmt of COW */ function dues() external view returns (uint256 amt, uint256 cowAmt); /** * Pull in from `msg.sender` the dues and subsequently call * the `SubPoolFactory` to `thaw` the sub-pool (if frozen). */ function heal() external; /** * Indicate a sub-pool's intent to quit the batch auction * At this point the solver who's sub-pool it is is now removed from * the competition. * This then starts the `delay` timer until exit is allowed. */ function quit() external auth; /** * Withdraw any remaining collateral / cow from the sub-pool. */ function exit() external; /** * URL to send the batches to the solver */ function backendUrl() external view returns (string memory); } interface SubPoolFactory is Auth { /** * View function for a collateral's ChainLinkOracle * @dev Implemented as `mapping(IERC20 token => IAggregatorV3Interface)` */ function collateral(IERC20 token) external view returns (IAggregatorV3Interface); /** * Set the `delay` between `quit` and `exit`. */ function setExitDelay(uint256 delay) external auth; /** * Set the `delay` between `poke` / `fine` and `freeze`. */ function setFreezeDelay(uint256 delay) external auth; /** * Allow `token` to be used as collateral for the sub-pool. * @notice **MUST** have a chain link oracle available for USD determination */ function allowCollateral(IERC20 token, IAggregatorV3Interface oracle) external auth; /** * Revoke `token` as a collateral for sub-pools */ function revokeCollateral(IERC20 token) external auth; /** * Deploy a `SubPool` deterministically with the salt set as `msg.sender`. * @param token The nominated token to use for collateral * @param amt How much collateral to add to the sub-pool (must be minimally collateralised) * @param cowAmt Amount of COW to add as collateral * @notice Is payable to support ETH. */ function create(IERC20 token, uint256 amt, uint256 cowAmt) payable; /** * Mark the `pool` as under-collateralised if so depending on ChainLink oracles. */ function poke(SubPool pool) external; /** * Fine a sub-pool * @param pool Which sub-pool to fine * @param tokens The tokens to fine (sending to `msg.sender`) * @param amts The amount of tokens to fine */ function fine(SubPool pool, IERC20[] calldata tokens, uint256[] calldata amts) external auth; /** * Freeze a `pool` if they are under-collateralised */ function freeze(SubPool pool) external; /** * Thaw `pool` if they are above collateralisation requirements */ function thaw(SubPool pool) external; } interface SignedSettlement is Auth { /** * Approve `signer` to act as signing authority to attest to the settlements */ function hope(address signer) external auth; /** * Revoke approval for `signer`. */ function nope(address signer) external auth; /** * Determine if `signer` can attest */ function can(address signer) external returns (bool); /** * Signed settlement function that is only callable by a collateralised * sub-pool (recall `sub-pool` is bound to `msg.sender`). * Takes the required settlement data and verifies that it has been * signed by a `signer`, and subsequently calls `GPv2.Settlement.settle`. * @dev Note the separation of pre-interactions, and other interactions, * so as to reduce the signing / hashing requirements. Gas-golfing is * a high requirement here. */ function signedSettle( IERC20[] calldata tokens, uint256[] calldata clearingPrices, GPv2Trade.Data[] calldata trades, GPv2Interaction.Data[] calldata signedPreInteractions, GPv2Interaction.Data[][2] calldata otherInteractions, bytes calldata signature ) external onlySubPool; } ``` ## Grant Goals and Impact This settlement contract will be used in the implementation of [CIP-44](https://snapshot.org/#/cow.eth/proposal/0x1b6f1171633ec3d20c4370db37074aa1bd830486d4d0d6c26165915cc42d9412) which furthers the decentralization of solvers. ## Milestones - The contracts - 1 week ## Funding Request 3000 xDAI ## Gnosis Chain Address `gno:0xd33d055ea52ec5a685995d40f19fa98d0744df0c` ### Terms and Conditions By submitting this grant application, I acknowledge and agree to be bound by the CoW DAO Participation Agreement and the CoW Grant Terms and Conditions. ---
**Author:** ![netrunner.eth](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.cow.fi/netrunner.eth/32/252_2.png) [@netrunner.eth](https://forum.cow.fi/u/netrunner.eth)\ **Post date:** [June 13, 2024, 1:43am UTC](https://forum.cow.fi/t/grant-application-settlement-wrapper-contract/2453/2 "2024-06-13T01:43:27Z")
Changing the bonding requirements makes this an interesting proposal, however it will require technical review by the Team prior to next steps. Thanks! ---
**Author:** ![middleway.eth](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.cow.fi/middleway.eth/32/12_2.png) [@middleway.eth](https://forum.cow.fi/u/middleway.eth)\ **Post date:** [June 14, 2024, 7:50am UTC](https://forum.cow.fi/t/grant-application-settlement-wrapper-contract/2453/3 "2024-06-14T07:50:46Z")
> [@netrunner.eth](#): > > Changing the bonding requirements makes this an interesting proposal, however it will require technical review by the Team prior to next steps. Thanks! I believe this has been reviewed, and is being proposed according to agreed spec… This is an important step for the decentralization of CoW Protocol! I would support this grant and would encourage to soon post to Snapshot ---
**Author:** ![meetm](https://avatars.discourse-cdn.com/v4/letter/m/b77776/32.png) [@meetm](https://forum.cow.fi/u/meetm)\ **Post date:** [June 15, 2024, 7:20am UTC](https://forum.cow.fi/t/grant-application-settlement-wrapper-contract/2453/4 "2024-06-15T07:20:55Z")
How many signals do we need in forum post before pushing to snapshot? ---
**Author:** ![meetm](https://avatars.discourse-cdn.com/v4/letter/m/b77776/32.png) [@meetm](https://forum.cow.fi/u/meetm)\ **Post date:** [June 15, 2024, 5:02pm UTC](https://forum.cow.fi/t/grant-application-settlement-wrapper-contract/2453/5 "2024-06-15T17:02:31Z")
Moved to snapshot [Snapshot](https://snapshot.org/#/cowgrants.eth/proposal/0x8bf9984810b32c19c7f7c0b8e78736c7f563d148863441bd6b9df4cca22256b5) ---
**Author:** ![middleway.eth](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.cow.fi/middleway.eth/32/12_2.png) [@middleway.eth](https://forum.cow.fi/u/middleway.eth)\ **Post date:** [October 1, 2024, 11:55am UTC](https://forum.cow.fi/t/grant-application-settlement-wrapper-contract/2453/6 "2024-10-01T11:55:26Z")
Dear @meetm I’d like to ask you to use this forum thread for announcing any future milestone as completed so the grants committee can review the submission and prepare for payment - thanks! ---
**Author:** ![meetm](https://avatars.discourse-cdn.com/v4/letter/m/b77776/32.png) [@meetm](https://forum.cow.fi/u/meetm)\ **Post date:** [October 14, 2024, 6:40am UTC](https://forum.cow.fi/t/grant-application-settlement-wrapper-contract/2453/7 "2024-10-14T06:40:12Z")
Proposing a retrospective funding grant for this project at [CoW Grant - Settlement Wrapper Contract Retrospective](https://forum.cow.fi/t/cow-grant-settlement-wrapper-contract-retrospective/2598) ---
**Author:** ![Chim9](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.cow.fi/chim9/32/417_2.png) [@Chim9](https://forum.cow.fi/u/Chim9)\ **Post date:** [February 6, 2025, 4:26pm UTC](https://forum.cow.fi/t/grant-application-settlement-wrapper-contract/2453/8 "2025-02-06T16:26:02Z")