Thoughts about second price auction in case of reverts

[marco_at_quasi]

Hi tokenhood!

If not mistaken the current penalty for a given tx is max(-score, -0.01). So it’s not the difference between score and second best score.

I’m pretty sure that it is max(-0.01, -second_best_score), see this from CIP-38:

@AndreaC

Following a second-price mechanism (similar to CIP-20), a winning solver who successfully executes its solution on chain, is paid

cap(winning_quality - reference_quality)

in COW tokens, and own all fees they collected in the settlement. The reference_quality is the quality of the second best solution or set to zero if there is only one solution.

On the other hand, if the winning solver fails to execute their solution on chain, they pay a penalty equal to

cap(reference_quality).

but this would not be the first time I would misunderstand these things