From 942c686ce1aafd69e0d6f3b81bc92cb584eba0f3 Mon Sep 17 00:00:00 2001 From: Felix Henneke Date: Fri, 13 Mar 2026 13:45:36 +0100 Subject: [PATCH 01/16] add consistency rewards --- .../reference/core/auctions/rewards.md | 36 +++++++++++++++---- 1 file changed, 29 insertions(+), 7 deletions(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index f3f48e3b8..4c182c385 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -5,7 +5,7 @@ sidebar_position: 3 # Solver rewards -The protocol is currently subsidizing the solver competition on all chains it operates on, by rewarding solvers on a weekly basis (currently, every Tuesday) with rewards paid in COW. Solvers are rewarded based on their performance as solvers (i.e., when participating in the standard solver competition) as specified by [CIP-20](https://snapshot.org/#/cow.eth/proposal/0x2d3f9bd1ea72dca84b03e97dda3efc1f4a42a772c54bd2037e8b62e7d09a491f), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-38](https://snapshot.org/#/cow.eth/proposal/0xfb81daea9be89f4f1c251d53fd9d1481129b97c6f38caaddc42af7f3ce5a52ec), [CIP-48](https://snapshot.org/#/cow.eth/proposal/0x563ab9a66265ad72c47a8e55f620f927685dd07d4d49f6d1812905c683f05805) [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), [CIP-67](https://snapshot.box/#/s:cow.eth/proposal/0xf9ecb08c4738f04c4525373d6b78085d16635f86adacd1b8ea77b2c176c99d32) and [CIP-74](https://snapshot.org/#/s:cow.eth/proposal/0x0c70c8cd92accee872b52614b4fa10e3e3214f45c5b6857f7e88e910607a3c1d). Solver rewards for participating in the price estimation competition and providing quotes that are needed for the gas estimates and limit price computations of market orders are specified in [CIP-27](https://snapshot.org/#/cow.eth/proposal/0x64e061568e86e8d2eec344d4a892e4126172b992cabe59a0b24c51c4c7e6cc33), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), and [CIP-72](https://snapshot.box/#/s:cow.eth/proposal/0xc1b1252f0c99126b4e09730022faa31a7bb58073a3dc064c19b74d44164c39a7). +The protocol is currently subsidizing the solver competition on all chains it operates on, by rewarding solvers on a weekly basis (currently, every Tuesday) with rewards paid in COW. Solvers are rewarded based on their performance as solvers (i.e., when participating in the standard solver competition) as specified by [CIP-20](https://snapshot.org/#/cow.eth/proposal/0x2d3f9bd1ea72dca84b03e97dda3efc1f4a42a772c54bd2037e8b62e7d09a491f), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-38](https://snapshot.org/#/cow.eth/proposal/0xfb81daea9be89f4f1c251d53fd9d1481129b97c6f38caaddc42af7f3ce5a52ec), [CIP-48](https://snapshot.org/#/cow.eth/proposal/0x563ab9a66265ad72c47a8e55f620f927685dd07d4d49f6d1812905c683f05805) [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), [CIP-67](https://snapshot.box/#/s:cow.eth/proposal/0xf9ecb08c4738f04c4525373d6b78085d16635f86adacd1b8ea77b2c176c99d32), [CIP-74](https://snapshot.org/#/s:cow.eth/proposal/0x0c70c8cd92accee872b52614b4fa10e3e3214f45c5b6857f7e88e910607a3c1d), and [CIP-XX](). Solver rewards for participating in the price estimation competition and providing quotes that are needed for the gas estimates and limit price computations of market orders are specified in [CIP-27](https://snapshot.org/#/cow.eth/proposal/0x64e061568e86e8d2eec344d4a892e4126172b992cabe59a0b24c51c4c7e6cc33), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), and [CIP-72](https://snapshot.box/#/s:cow.eth/proposal/0xc1b1252f0c99126b4e09730022faa31a7bb58073a3dc064c19b74d44164c39a7). :::note @@ -13,7 +13,9 @@ For the interested reader, the main source of truth for the weekly payments to s ::: -## Solver competition rewards (CIPs 20, 36, 38, 48, 57, 67, 74) +## Solver competition rewards (CIPs 20, 36, 38, 48, 57, 67, 74, XX) + +### Performance rewards Solver rewards are computed using a mechanism akin to a Vickrey–Clarke–Groves mechanism (a generalization of a second-price auction to combinatorial auctions). First, each solver proposes multiple solutions. Each solution contains a price vector and a list of trades to execute, which can be used to compute the solution's score. The protocol then selects the winning solutions (and winning solvers) using a fair combinatorial auction, which first filters out the solutions deemed unfair and then selects the combination of fair solutions that maximizes the total score of the auction (see [here](competition-rules#off-chain-protocol) for more details). @@ -23,21 +25,21 @@ From the protocol's perspective, a solution as executed on chain must equal the ::: -The payment to the winning solver $$i$$ is +The performance reward to the winning solver $$i$$ is $$ -\textrm{payment}_i = \textrm{cap}(\textrm{totalScore} - \textrm{referenceScore}_i-\textrm{missingScore}_i). +\textrm{performanceReward}_i = \textrm{cap}(\textrm{totalScore} - \textrm{referenceScore}_i-\textrm{missingScore}_i). $$ Here $$\textrm{totalScore}$$ is the sum of the scores of all winning solutions in the auction and $$\textrm{missingScore}_i$$ is the sum of the scores of solver $$i$$'s winning solutions that reverted. Finally, $$\textrm{referenceScore}_i$$ is the total score of a counterfactual auction in which all bids from solver $$i$$ are removed from the set of bids that survive the fairness filtering. :::note -The payment calculation can result in a negative figure, in which case the solver is required to pay the protocol. +The performance reward calculation can result in a negative figure, in which case the solver is required to pay the protocol. ::: -The payment is capped from above and below using the function $$\textrm{cap}(x) = \max(-c_l, \min(c_u, x))$$, where $$c_u$$ is the protocol fee (excluding partner fees) that the protocol earned from the trades in all solutions supplied by the solver in that auction and $$c_l$$ is chain-specific, determined by the following values: +The performance reward is capped from above and below using the function $$\textrm{cap}(x) = \max(-c_l, \min(c_u, x))$$, where $$c_u$$ is 50% of the protocol fee (excluding partner fees) that the protocol earned from the trades in all solutions supplied by the solver in that auction and $$c_l$$ is chain-specific, determined by the following values: - Ethereum mainnet, Arbitrum, and Base chain: $$0.010 \;\textrm{ETH}$$ - Gnosis Chain: $$10 \;\textrm{xDAI}$$ @@ -55,6 +57,24 @@ There is no guarantee that the per-auction rewards are greater than the costs of ::: +### Consistency rewards + +In each auction, solver $$i$$'s contribution to the consistency budget is + +$$ +\frac{1}{2} \cdot \textrm{protocolFee}_i - \max(0, \textrm{performanceReward}_i), +$$ + +where $$\textrm{protocolFee}_i$$ is the protocol fee (excluding partner fees) earned from the trades in all solutions supplied by solver $$i$$. When the performance reward is a penalty (i.e., negative), the full $$\frac{1}{2} \cdot \textrm{protocolFee}_i$$ is contributed to the consistency budget. The total consistency budget for an accounting period is the sum of these contributions across all solvers and auctions. + +The consistency budget is distributed at the end of each accounting period according to a consistency metric. The core team has a mandate to adapt this metric over time; every change will be announced in advance on the [CoW Protocol forum](https://forum.cow.fi). + +**Current metric: order count.** Each solver's share of the consistency budget is proportional to the number of executed orders for which it submitted a solution: + +$$ +\textrm{consistencyReward}_i = \textrm{consistencyBudget} \times \frac{\textrm{orderCount}_i}{\sum_j \textrm{orderCount}_j}. +$$ + ### Buffer accounting It is possible that the state of the external liquidity sources used as part of a solution changes between the bidding stage and the execution stage. We say that there is negative slippage when the solver's execution generates less than the expected amount, and positive slippage otherwise. In case of negative slippage the solver can utilize the buffers available in the settlement contract, while a solver can accumulate positive slippage in the settlement contract. Every week, the protocol computes a "net" slippage and either pays a solver (when it is positive) or requests a payment from a solver (when it is negative). For more information, see the [accounting section](/cow-protocol/reference/core/auctions/accounting). @@ -71,7 +91,9 @@ With respect to optimal bidding, note that the protocol rewards allow a solver t The presence of the cap on rewards $$c_u$$, however, makes the problem more complex as it introduces a "first-price auction" logic: if the difference between the best and second-best solution is very large, then the winning solver wins more when it underreports its score. The filtering step of the fair combinatorial auction also makes this problem more complex, because there are some edge cases in which by reducing the score of a solution, solver $i$ can benefit by making the filtering steps less stringent for its opponents (see [here](https://forum.cow.fi/t/combinatorial-auctions-from-theory-to-practice-via-some-more-theory-about-rewards/2877) for a discussion). However, determining the optimal amount of underreporting is very complex and requires each solver to make strong assumptions regarding the performance of competing solvers. -To summarize, truthfully revealing the (cost-adjusted) score that a solver can generate for each submitted solution is optimal if the cap is not binding, and misreporting does not affect $$\textrm{referenceScore}_i$$. It is not necessarily optimal in uncompetitive auctions when the difference between the best and second-best solution may be large, and in some edge cases in which a solver may benefit from making the filtering step less stringent. However, in these cases, deriving the optimal strategy is a very complex problem. We conclude by noting that most CoW Protocol batches are very competitive - at the time of writing (November 2025) the cap on rewards is binding only in about 9% of auctions - and that a solver benefits by making the filtering steps less stringent for its opponents only in sporadic cases. +To summarize, truthfully revealing the (cost-adjusted) score that a solver can generate for each submitted solution is optimal if the cap is not binding, and misreporting does not affect $$\textrm{referenceScore}_i$$. It is not necessarily optimal in uncompetitive auctions when the difference between the best and second-best solution may be large, and in some edge cases in which a solver may benefit from making the filtering step less stringent. However, in these cases, deriving the optimal strategy is a very complex problem. + +Consistency rewards introduce an additional strategic dimension: since the order-count metric rewards solvers for submitting solutions to auctions in which orders are ultimately executed, solvers have an incentive to participate broadly across auctions, even in cases where they do not expect to win the performance reward. ## Price estimation competition rewards (CIPs 27, 36, 57, 72) From f7b9807040f735e002f9eedd4b4843e965fdd423 Mon Sep 17 00:00:00 2001 From: Felix Henneke Date: Fri, 13 Mar 2026 13:53:26 +0100 Subject: [PATCH 02/16] fix dummy link for vercel preview --- docs/cow-protocol/reference/core/auctions/rewards.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index 4c182c385..aa6e454c8 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -5,7 +5,7 @@ sidebar_position: 3 # Solver rewards -The protocol is currently subsidizing the solver competition on all chains it operates on, by rewarding solvers on a weekly basis (currently, every Tuesday) with rewards paid in COW. Solvers are rewarded based on their performance as solvers (i.e., when participating in the standard solver competition) as specified by [CIP-20](https://snapshot.org/#/cow.eth/proposal/0x2d3f9bd1ea72dca84b03e97dda3efc1f4a42a772c54bd2037e8b62e7d09a491f), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-38](https://snapshot.org/#/cow.eth/proposal/0xfb81daea9be89f4f1c251d53fd9d1481129b97c6f38caaddc42af7f3ce5a52ec), [CIP-48](https://snapshot.org/#/cow.eth/proposal/0x563ab9a66265ad72c47a8e55f620f927685dd07d4d49f6d1812905c683f05805) [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), [CIP-67](https://snapshot.box/#/s:cow.eth/proposal/0xf9ecb08c4738f04c4525373d6b78085d16635f86adacd1b8ea77b2c176c99d32), [CIP-74](https://snapshot.org/#/s:cow.eth/proposal/0x0c70c8cd92accee872b52614b4fa10e3e3214f45c5b6857f7e88e910607a3c1d), and [CIP-XX](). Solver rewards for participating in the price estimation competition and providing quotes that are needed for the gas estimates and limit price computations of market orders are specified in [CIP-27](https://snapshot.org/#/cow.eth/proposal/0x64e061568e86e8d2eec344d4a892e4126172b992cabe59a0b24c51c4c7e6cc33), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), and [CIP-72](https://snapshot.box/#/s:cow.eth/proposal/0xc1b1252f0c99126b4e09730022faa31a7bb58073a3dc064c19b74d44164c39a7). +The protocol is currently subsidizing the solver competition on all chains it operates on, by rewarding solvers on a weekly basis (currently, every Tuesday) with rewards paid in COW. Solvers are rewarded based on their performance as solvers (i.e., when participating in the standard solver competition) as specified by [CIP-20](https://snapshot.org/#/cow.eth/proposal/0x2d3f9bd1ea72dca84b03e97dda3efc1f4a42a772c54bd2037e8b62e7d09a491f), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-38](https://snapshot.org/#/cow.eth/proposal/0xfb81daea9be89f4f1c251d53fd9d1481129b97c6f38caaddc42af7f3ce5a52ec), [CIP-48](https://snapshot.org/#/cow.eth/proposal/0x563ab9a66265ad72c47a8e55f620f927685dd07d4d49f6d1812905c683f05805) [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), [CIP-67](https://snapshot.box/#/s:cow.eth/proposal/0xf9ecb08c4738f04c4525373d6b78085d16635f86adacd1b8ea77b2c176c99d32), [CIP-74](https://snapshot.org/#/s:cow.eth/proposal/0x0c70c8cd92accee872b52614b4fa10e3e3214f45c5b6857f7e88e910607a3c1d), and CIP-XX(add snapshot link). Solver rewards for participating in the price estimation competition and providing quotes that are needed for the gas estimates and limit price computations of market orders are specified in [CIP-27](https://snapshot.org/#/cow.eth/proposal/0x64e061568e86e8d2eec344d4a892e4126172b992cabe59a0b24c51c4c7e6cc33), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), and [CIP-72](https://snapshot.box/#/s:cow.eth/proposal/0xc1b1252f0c99126b4e09730022faa31a7bb58073a3dc064c19b74d44164c39a7). :::note From 19d1cae43aff84c0853ee82d7fd9e82d3dfb8580 Mon Sep 17 00:00:00 2001 From: harisang Date: Mon, 30 Mar 2026 12:29:44 +0300 Subject: [PATCH 03/16] small rephrasing in intro --- docs/cow-protocol/reference/core/auctions/rewards.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index aa6e454c8..2a41748ac 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -5,7 +5,7 @@ sidebar_position: 3 # Solver rewards -The protocol is currently subsidizing the solver competition on all chains it operates on, by rewarding solvers on a weekly basis (currently, every Tuesday) with rewards paid in COW. Solvers are rewarded based on their performance as solvers (i.e., when participating in the standard solver competition) as specified by [CIP-20](https://snapshot.org/#/cow.eth/proposal/0x2d3f9bd1ea72dca84b03e97dda3efc1f4a42a772c54bd2037e8b62e7d09a491f), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-38](https://snapshot.org/#/cow.eth/proposal/0xfb81daea9be89f4f1c251d53fd9d1481129b97c6f38caaddc42af7f3ce5a52ec), [CIP-48](https://snapshot.org/#/cow.eth/proposal/0x563ab9a66265ad72c47a8e55f620f927685dd07d4d49f6d1812905c683f05805) [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), [CIP-67](https://snapshot.box/#/s:cow.eth/proposal/0xf9ecb08c4738f04c4525373d6b78085d16635f86adacd1b8ea77b2c176c99d32), [CIP-74](https://snapshot.org/#/s:cow.eth/proposal/0x0c70c8cd92accee872b52614b4fa10e3e3214f45c5b6857f7e88e910607a3c1d), and CIP-XX(add snapshot link). Solver rewards for participating in the price estimation competition and providing quotes that are needed for the gas estimates and limit price computations of market orders are specified in [CIP-27](https://snapshot.org/#/cow.eth/proposal/0x64e061568e86e8d2eec344d4a892e4126172b992cabe59a0b24c51c4c7e6cc33), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), and [CIP-72](https://snapshot.box/#/s:cow.eth/proposal/0xc1b1252f0c99126b4e09730022faa31a7bb58073a3dc064c19b74d44164c39a7). +The protocol is currently subsidizing the solver competition on all chains it operates on, by rewarding solvers on a weekly basis (currently, every Tuesday) with rewards paid in COW. Solvers are rewarded based on their performance and participation in the solver competition as specified by [CIP-20](https://snapshot.org/#/cow.eth/proposal/0x2d3f9bd1ea72dca84b03e97dda3efc1f4a42a772c54bd2037e8b62e7d09a491f), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-38](https://snapshot.org/#/cow.eth/proposal/0xfb81daea9be89f4f1c251d53fd9d1481129b97c6f38caaddc42af7f3ce5a52ec), [CIP-48](https://snapshot.org/#/cow.eth/proposal/0x563ab9a66265ad72c47a8e55f620f927685dd07d4d49f6d1812905c683f05805), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), [CIP-67](https://snapshot.box/#/s:cow.eth/proposal/0xf9ecb08c4738f04c4525373d6b78085d16635f86adacd1b8ea77b2c176c99d32), [CIP-74](https://snapshot.org/#/s:cow.eth/proposal/0x0c70c8cd92accee872b52614b4fa10e3e3214f45c5b6857f7e88e910607a3c1d), and CIP-XX(add snapshot link). Solver rewards for participating in the price estimation competition and providing quotes that are needed for the gas estimates and limit price computations of market orders, which from now one will call price estimation or quote rewards, are specified in [CIP-27](https://snapshot.org/#/cow.eth/proposal/0x64e061568e86e8d2eec344d4a892e4126172b992cabe59a0b24c51c4c7e6cc33), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), and [CIP-72](https://snapshot.box/#/s:cow.eth/proposal/0xc1b1252f0c99126b4e09730022faa31a7bb58073a3dc064c19b74d44164c39a7). :::note From b6b7ef834da9af313782925e289c810b8cce9b8b Mon Sep 17 00:00:00 2001 From: harisang Date: Mon, 30 Mar 2026 12:51:21 +0300 Subject: [PATCH 04/16] small fixes and rephrasings --- docs/cow-protocol/reference/core/auctions/rewards.md | 6 +++--- 1 file changed, 3 insertions(+), 3 deletions(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index 2a41748ac..849e3a613 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -5,7 +5,7 @@ sidebar_position: 3 # Solver rewards -The protocol is currently subsidizing the solver competition on all chains it operates on, by rewarding solvers on a weekly basis (currently, every Tuesday) with rewards paid in COW. Solvers are rewarded based on their performance and participation in the solver competition as specified by [CIP-20](https://snapshot.org/#/cow.eth/proposal/0x2d3f9bd1ea72dca84b03e97dda3efc1f4a42a772c54bd2037e8b62e7d09a491f), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-38](https://snapshot.org/#/cow.eth/proposal/0xfb81daea9be89f4f1c251d53fd9d1481129b97c6f38caaddc42af7f3ce5a52ec), [CIP-48](https://snapshot.org/#/cow.eth/proposal/0x563ab9a66265ad72c47a8e55f620f927685dd07d4d49f6d1812905c683f05805), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), [CIP-67](https://snapshot.box/#/s:cow.eth/proposal/0xf9ecb08c4738f04c4525373d6b78085d16635f86adacd1b8ea77b2c176c99d32), [CIP-74](https://snapshot.org/#/s:cow.eth/proposal/0x0c70c8cd92accee872b52614b4fa10e3e3214f45c5b6857f7e88e910607a3c1d), and CIP-XX(add snapshot link). Solver rewards for participating in the price estimation competition and providing quotes that are needed for the gas estimates and limit price computations of market orders, which from now one will call price estimation or quote rewards, are specified in [CIP-27](https://snapshot.org/#/cow.eth/proposal/0x64e061568e86e8d2eec344d4a892e4126172b992cabe59a0b24c51c4c7e6cc33), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), and [CIP-72](https://snapshot.box/#/s:cow.eth/proposal/0xc1b1252f0c99126b4e09730022faa31a7bb58073a3dc064c19b74d44164c39a7). +The protocol is currently subsidizing the solver competition on all chains it operates on, by rewarding solvers on a weekly basis (currently, every Tuesday) with rewards paid in COW. Solvers are rewarded based on their performance and participation in the solver competition as specified by [CIP-20](https://snapshot.org/#/cow.eth/proposal/0x2d3f9bd1ea72dca84b03e97dda3efc1f4a42a772c54bd2037e8b62e7d09a491f), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-38](https://snapshot.org/#/cow.eth/proposal/0xfb81daea9be89f4f1c251d53fd9d1481129b97c6f38caaddc42af7f3ce5a52ec), [CIP-48](https://snapshot.org/#/cow.eth/proposal/0x563ab9a66265ad72c47a8e55f620f927685dd07d4d49f6d1812905c683f05805), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), [CIP-67](https://snapshot.box/#/s:cow.eth/proposal/0xf9ecb08c4738f04c4525373d6b78085d16635f86adacd1b8ea77b2c176c99d32), [CIP-74](https://snapshot.org/#/s:cow.eth/proposal/0x0c70c8cd92accee872b52614b4fa10e3e3214f45c5b6857f7e88e910607a3c1d), and CIP-XX(add snapshot link). Solver rewards for participating in the price estimation competition and providing quotes that are needed for the gas estimates and limit price computations of market orders, which from now one we will call price estimation or quote rewards, are specified in [CIP-27](https://snapshot.org/#/cow.eth/proposal/0x64e061568e86e8d2eec344d4a892e4126172b992cabe59a0b24c51c4c7e6cc33), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), and [CIP-72](https://snapshot.box/#/s:cow.eth/proposal/0xc1b1252f0c99126b4e09730022faa31a7bb58073a3dc064c19b74d44164c39a7). :::note @@ -17,7 +17,7 @@ For the interested reader, the main source of truth for the weekly payments to s ### Performance rewards -Solver rewards are computed using a mechanism akin to a Vickrey–Clarke–Groves mechanism (a generalization of a second-price auction to combinatorial auctions). First, each solver proposes multiple solutions. Each solution contains a price vector and a list of trades to execute, which can be used to compute the solution's score. The protocol then selects the winning solutions (and winning solvers) using a fair combinatorial auction, which first filters out the solutions deemed unfair and then selects the combination of fair solutions that maximizes the total score of the auction (see [here](competition-rules#off-chain-protocol) for more details). +Performance rewards are computed using a mechanism akin to a Vickrey–Clarke–Groves mechanism (a generalization of a second-price auction to combinatorial auctions). First, each solver proposes multiple solutions. Each solution contains a price vector and a list of trades to execute, which can be used to compute the solution's score. The protocol then selects the winning solutions (and winning solvers) using a fair combinatorial auction, which first filters out the solutions deemed unfair and then selects the combination of fair solutions that maximizes the total score of the auction (see [here](competition-rules#off-chain-protocol) for more details). :::note @@ -35,7 +35,7 @@ Here $$\textrm{totalScore}$$ is the sum of the scores of all winning solutions i :::note -The performance reward calculation can result in a negative figure, in which case the solver is required to pay the protocol. +The performance reward calculation can result in a negative value, in which case the solver is required to pay the protocol. ::: From ecbce4e06e6ee5107c2f3c5fd943e89086cf3471 Mon Sep 17 00:00:00 2001 From: harisang Date: Mon, 30 Mar 2026 13:14:46 +0300 Subject: [PATCH 05/16] add intro for consistent rewards --- docs/cow-protocol/reference/core/auctions/rewards.md | 5 ++++- 1 file changed, 4 insertions(+), 1 deletion(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index 849e3a613..2a80f36af 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -59,7 +59,10 @@ There is no guarantee that the per-auction rewards are greater than the costs of ### Consistency rewards -In each auction, solver $$i$$'s contribution to the consistency budget is + +With CIP-XX (add snapshot link), the protocol introduced consistency rewards. These rewards are based on aggregate metrics evaluated over the full accounting week and are intended to incentivize consistent, reliable solver behavior, broad token coverage, and other aspects the core team considers important for maintaining healthy competition. + +Concretely, in each auction, solver $$i$$'s contribution to the consistency budget is $$ \frac{1}{2} \cdot \textrm{protocolFee}_i - \max(0, \textrm{performanceReward}_i), From 01319103139824e996184a12ea85331d8d648d7d Mon Sep 17 00:00:00 2001 From: harisang Date: Mon, 30 Mar 2026 13:36:45 +0300 Subject: [PATCH 06/16] more rephrasing --- docs/cow-protocol/reference/core/auctions/rewards.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index 2a80f36af..a102bf459 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -70,7 +70,7 @@ $$ where $$\textrm{protocolFee}_i$$ is the protocol fee (excluding partner fees) earned from the trades in all solutions supplied by solver $$i$$. When the performance reward is a penalty (i.e., negative), the full $$\frac{1}{2} \cdot \textrm{protocolFee}_i$$ is contributed to the consistency budget. The total consistency budget for an accounting period is the sum of these contributions across all solvers and auctions. -The consistency budget is distributed at the end of each accounting period according to a consistency metric. The core team has a mandate to adapt this metric over time; every change will be announced in advance on the [CoW Protocol forum](https://forum.cow.fi). +The consistency budget is distributed at the end of each accounting period according to a consistency metric. The core team has a mandate to adapt this metric when they see fit; every change will be announced in advance on the [CoW Protocol forum](https://forum.cow.fi). **Current metric: order count.** Each solver's share of the consistency budget is proportional to the number of executed orders for which it submitted a solution: From be2ecf67c103eeca05b502d9d19926b2d0acd3e3 Mon Sep 17 00:00:00 2001 From: harisang Date: Mon, 30 Mar 2026 13:38:09 +0300 Subject: [PATCH 07/16] a bit more rephrasing --- docs/cow-protocol/reference/core/auctions/rewards.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index a102bf459..07f205a42 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -96,7 +96,7 @@ The presence of the cap on rewards $$c_u$$, however, makes the problem more comp To summarize, truthfully revealing the (cost-adjusted) score that a solver can generate for each submitted solution is optimal if the cap is not binding, and misreporting does not affect $$\textrm{referenceScore}_i$$. It is not necessarily optimal in uncompetitive auctions when the difference between the best and second-best solution may be large, and in some edge cases in which a solver may benefit from making the filtering step less stringent. However, in these cases, deriving the optimal strategy is a very complex problem. -Consistency rewards introduce an additional strategic dimension: since the order-count metric rewards solvers for submitting solutions to auctions in which orders are ultimately executed, solvers have an incentive to participate broadly across auctions, even in cases where they do not expect to win the performance reward. +Consistency rewards introduce an additional strategic dimension; for example, the order-count metric rewards solvers for submitting solutions to auctions in which orders are ultimately executed, solvers have an incentive to participate broadly across auctions, even in cases where they do not expect to win the performance reward. ## Price estimation competition rewards (CIPs 27, 36, 57, 72) From 960de8a12b436beb101c2f264b5d5c75d41d74b6 Mon Sep 17 00:00:00 2001 From: harisang Date: Mon, 30 Mar 2026 13:38:41 +0300 Subject: [PATCH 08/16] fix typo --- docs/cow-protocol/reference/core/auctions/rewards.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index 07f205a42..5e5d9bff1 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -5,7 +5,7 @@ sidebar_position: 3 # Solver rewards -The protocol is currently subsidizing the solver competition on all chains it operates on, by rewarding solvers on a weekly basis (currently, every Tuesday) with rewards paid in COW. Solvers are rewarded based on their performance and participation in the solver competition as specified by [CIP-20](https://snapshot.org/#/cow.eth/proposal/0x2d3f9bd1ea72dca84b03e97dda3efc1f4a42a772c54bd2037e8b62e7d09a491f), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-38](https://snapshot.org/#/cow.eth/proposal/0xfb81daea9be89f4f1c251d53fd9d1481129b97c6f38caaddc42af7f3ce5a52ec), [CIP-48](https://snapshot.org/#/cow.eth/proposal/0x563ab9a66265ad72c47a8e55f620f927685dd07d4d49f6d1812905c683f05805), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), [CIP-67](https://snapshot.box/#/s:cow.eth/proposal/0xf9ecb08c4738f04c4525373d6b78085d16635f86adacd1b8ea77b2c176c99d32), [CIP-74](https://snapshot.org/#/s:cow.eth/proposal/0x0c70c8cd92accee872b52614b4fa10e3e3214f45c5b6857f7e88e910607a3c1d), and CIP-XX(add snapshot link). Solver rewards for participating in the price estimation competition and providing quotes that are needed for the gas estimates and limit price computations of market orders, which from now one we will call price estimation or quote rewards, are specified in [CIP-27](https://snapshot.org/#/cow.eth/proposal/0x64e061568e86e8d2eec344d4a892e4126172b992cabe59a0b24c51c4c7e6cc33), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), and [CIP-72](https://snapshot.box/#/s:cow.eth/proposal/0xc1b1252f0c99126b4e09730022faa31a7bb58073a3dc064c19b74d44164c39a7). +The protocol is currently subsidizing the solver competition on all chains it operates on, by rewarding solvers on a weekly basis (currently, every Tuesday) with rewards paid in COW. Solvers are rewarded based on their performance and participation in the solver competition as specified by [CIP-20](https://snapshot.org/#/cow.eth/proposal/0x2d3f9bd1ea72dca84b03e97dda3efc1f4a42a772c54bd2037e8b62e7d09a491f), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-38](https://snapshot.org/#/cow.eth/proposal/0xfb81daea9be89f4f1c251d53fd9d1481129b97c6f38caaddc42af7f3ce5a52ec), [CIP-48](https://snapshot.org/#/cow.eth/proposal/0x563ab9a66265ad72c47a8e55f620f927685dd07d4d49f6d1812905c683f05805), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), [CIP-67](https://snapshot.box/#/s:cow.eth/proposal/0xf9ecb08c4738f04c4525373d6b78085d16635f86adacd1b8ea77b2c176c99d32), [CIP-74](https://snapshot.org/#/s:cow.eth/proposal/0x0c70c8cd92accee872b52614b4fa10e3e3214f45c5b6857f7e88e910607a3c1d), and CIP-XX(add snapshot link). Solver rewards for participating in the price estimation competition and providing quotes that are needed for the gas estimates and limit price computations of market orders, which from now on we will call price estimation or quote rewards, are specified in [CIP-27](https://snapshot.org/#/cow.eth/proposal/0x64e061568e86e8d2eec344d4a892e4126172b992cabe59a0b24c51c4c7e6cc33), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), and [CIP-72](https://snapshot.box/#/s:cow.eth/proposal/0xc1b1252f0c99126b4e09730022faa31a7bb58073a3dc064c19b74d44164c39a7). :::note From 6abec8de2b7e1723e1eda66c7a27d051202e7025 Mon Sep 17 00:00:00 2001 From: harisang Date: Mon, 30 Mar 2026 13:39:20 +0300 Subject: [PATCH 09/16] incorporate ai comment --- docs/cow-protocol/reference/core/auctions/rewards.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index 5e5d9bff1..5172cf2ea 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -21,7 +21,7 @@ Performance rewards are computed using a mechanism akin to a Vickrey–Clarke– :::note -From the protocol's perspective, a solution as executed on chain must equal the solution as submitted at the bidding stage. +From the protocol's perspective, a solution as executed on-chain must equal the solution as submitted at the bidding stage. ::: From 997f7e05eabbbd84a828d9d3b1f9360552bfe511 Mon Sep 17 00:00:00 2001 From: harisang Date: Mon, 30 Mar 2026 13:41:02 +0300 Subject: [PATCH 10/16] fix broken reference --- docs/cow-protocol/tutorials/solvers/onboard.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/docs/cow-protocol/tutorials/solvers/onboard.md b/docs/cow-protocol/tutorials/solvers/onboard.md index 06d5172ab..72327783c 100644 --- a/docs/cow-protocol/tutorials/solvers/onboard.md +++ b/docs/cow-protocol/tutorials/solvers/onboard.md @@ -135,7 +135,7 @@ After joining the solver competition on Arbitrum we can enable your solver on ot We usually wait a bit before migrating solvers to mainnet. After your solver has been active on other networks for some time the team can enable your solver on mainnet. ## 10. Joining the quoting competition -Besides the solving competition, there is also a quoting competition. More information about the quoting competition can be found [here](https://docs.cow.fi/cow-protocol/reference/core/auctions/rewards#price-estimation-competition-rewards-cips-27-57-72). +Besides the solving competition, there is also a quoting competition. More information about the quoting competition can be found [here](https://docs.cow.fi/cow-protocol/reference/core/auctions/rewards#price-estimation-competition-rewards-cips-27-36-57-72). ## 11. F.A.Q. ### Can we get access to the orderbook API? From 74d40ddb68540da1d0e6600fbe061c4e285e86d0 Mon Sep 17 00:00:00 2001 From: harisang Date: Mon, 30 Mar 2026 14:23:31 +0300 Subject: [PATCH 11/16] add scaling protocol fee factor --- .../reference/core/auctions/rewards.md | 18 +++++++++--------- 1 file changed, 9 insertions(+), 9 deletions(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index 5172cf2ea..953354033 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -21,7 +21,7 @@ Performance rewards are computed using a mechanism akin to a Vickrey–Clarke– :::note -From the protocol's perspective, a solution as executed on-chain must equal the solution as submitted at the bidding stage. +From the protocol's perspective, a solution as executed onchain must equal the solution as submitted at the bidding stage. ::: @@ -39,15 +39,15 @@ The performance reward calculation can result in a negative value, in which case ::: -The performance reward is capped from above and below using the function $$\textrm{cap}(x) = \max(-c_l, \min(c_u, x))$$, where $$c_u$$ is 50% of the protocol fee (excluding partner fees) that the protocol earned from the trades in all solutions supplied by the solver in that auction and $$c_l$$ is chain-specific, determined by the following values: +The performance reward is capped from above and below using the function $$\textrm{cap}(x) = \max(-c_l, \min(c_u, x))$$, where $$c_u$$ is a chain-specific $$\beta$$ percent of the protocol fee (excluding partner fees) that the protocol earned from the trades in all solutions successfully executed onchain by the solver in that auction and $$c_l$$ is chain-specific. $$\beta$ and $$c_l$$ are determined by the following values: -- Ethereum mainnet, Arbitrum, and Base chain: $$0.010 \;\textrm{ETH}$$ -- Gnosis Chain: $$10 \;\textrm{xDAI}$$ -- Avalanche: $$0.3 \;\textrm{AVAX}$$ -- Polygon: $$30 \;\textrm{POL}$$ -- BNB: $$0.04 \;\textrm{BNB}$$ -- Linea and Ink: $$0.0015 \;\textrm{ETH}$$ -- Plasma: $$30 \;\textrm{XPL}$$ +- Ethereum mainnet, Arbitrum, and Base chain: $$\beta = 50\%$$, $$c_l = 0.010 \;\textrm{ETH}$$ +- Gnosis Chain: $$\beta = 100\%$$, $$10 \;\textrm{xDAI}$$ +- Avalanche: $$\beta = 100\%$$, $$0.3 \;\textrm{AVAX}$$ +- Polygon: $$\beta = 100\%$$, $$30 \;\textrm{POL}$$ +- BNB: $$\beta = 100\%$$, $$0.04 \;\textrm{BNB}$$ +- Linea and Ink: $$\beta = 100\%$$, $$0.0015 \;\textrm{ETH}$$ +- Plasma: $$\beta = 100\%$$, $$30 \;\textrm{XPL}$$ If only one solver submits solutions, $$\textrm{referenceScore}_i$$ is, by definition, zero. From 4a60710a6203f276296c9cdf45028f486a90d448 Mon Sep 17 00:00:00 2001 From: harisang Date: Mon, 30 Mar 2026 14:32:18 +0300 Subject: [PATCH 12/16] add revenue sharing parameter --- docs/cow-protocol/reference/core/auctions/rewards.md | 7 ++++--- 1 file changed, 4 insertions(+), 3 deletions(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index 953354033..df78ca3ef 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -31,7 +31,7 @@ $$ \textrm{performanceReward}_i = \textrm{cap}(\textrm{totalScore} - \textrm{referenceScore}_i-\textrm{missingScore}_i). $$ -Here $$\textrm{totalScore}$$ is the sum of the scores of all winning solutions in the auction and $$\textrm{missingScore}_i$$ is the sum of the scores of solver $$i$$'s winning solutions that reverted. Finally, $$\textrm{referenceScore}_i$$ is the total score of a counterfactual auction in which all bids from solver $$i$$ are removed from the set of bids that survive the fairness filtering. +Here $$\textrm{totalScore}$$ is the sum of the scores of all winning solutions in the auction and $$\textrm{missingScore}_i$$ is the sum of the scores of solver $$i$$'s winning solutions that reverted. Finally, $$\textrm{referenceScore}_i$$ is the total score of a counterfactual auction in which all bids from solver $$i$$ are removed from the set of bids that survive the fairness filtering. If only one solver submits solutions, $$\textrm{referenceScore}_i$$ is, by definition, zero. :::note @@ -39,7 +39,7 @@ The performance reward calculation can result in a negative value, in which case ::: -The performance reward is capped from above and below using the function $$\textrm{cap}(x) = \max(-c_l, \min(c_u, x))$$, where $$c_u$$ is a chain-specific $$\beta$$ percent of the protocol fee (excluding partner fees) that the protocol earned from the trades in all solutions successfully executed onchain by the solver in that auction and $$c_l$$ is chain-specific. $$\beta$ and $$c_l$$ are determined by the following values: +The performance reward is capped from above and below using the function $$\textrm{cap}(x) = \max(-c_l, \min(c_u, x))$$, where $$c_u$$ is equal to a chain-specific $$\beta$$ percent of the protocol fee (excluding partner fees) that the protocol earned from the trades in all solutions successfully executed onchain by the solver in that auction, and $$c_l$$ is chain-specific as well. $$\beta$$ and $$c_l$$ are determined by the following values: - Ethereum mainnet, Arbitrum, and Base chain: $$\beta = 50\%$$, $$c_l = 0.010 \;\textrm{ETH}$$ - Gnosis Chain: $$\beta = 100\%$$, $$10 \;\textrm{xDAI}$$ @@ -49,7 +49,8 @@ The performance reward is capped from above and below using the function $$\text - Linea and Ink: $$\beta = 100\%$$, $$0.0015 \;\textrm{ETH}$$ - Plasma: $$\beta = 100\%$$, $$30 \;\textrm{XPL}$$ -If only one solver submits solutions, $$\textrm{referenceScore}_i$$ is, by definition, zero. +The parameter $$\beta$$, which naturally corresponds to a revenue-sharing parameter between protocol and solvers, is set to 50% by default. The core team has a mandate to change this parameter for individual networks to a value in the interval [50%, 100%], given that the network has a total revenue less than 5% of the revenue on mainnet. + :::note From 9639a5272efb326e500302e9f9cf9500d8a5c81e Mon Sep 17 00:00:00 2001 From: harisang Date: Mon, 30 Mar 2026 14:33:59 +0300 Subject: [PATCH 13/16] small fixes --- docs/cow-protocol/reference/core/auctions/rewards.md | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index df78ca3ef..2efc95a85 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -66,10 +66,10 @@ With CIP-XX (add snapshot link), the protocol introduced consistency rewards. Th Concretely, in each auction, solver $$i$$'s contribution to the consistency budget is $$ -\frac{1}{2} \cdot \textrm{protocolFee}_i - \max(0, \textrm{performanceReward}_i), +\frac{1}{2} \cdot \textrm{protocolFee}_i - \textrm{performanceReward}_i, $$ -where $$\textrm{protocolFee}_i$$ is the protocol fee (excluding partner fees) earned from the trades in all solutions supplied by solver $$i$$. When the performance reward is a penalty (i.e., negative), the full $$\frac{1}{2} \cdot \textrm{protocolFee}_i$$ is contributed to the consistency budget. The total consistency budget for an accounting period is the sum of these contributions across all solvers and auctions. +where $$\textrm{protocolFee}_i$$ is the protocol fee (excluding partner fees) earned from the trades in all successfully executed onchain by solver $$i$$ in that auction. When the performance reward is a penalty (i.e., negative), the penalty itself contributes to the consistency budget. The total consistency budget for an accounting period is the sum of these contributions across all solvers and auctions. The consistency budget is distributed at the end of each accounting period according to a consistency metric. The core team has a mandate to adapt this metric when they see fit; every change will be announced in advance on the [CoW Protocol forum](https://forum.cow.fi). From 58ebf3bad419b18a682b5173378672bbc4eb119f Mon Sep 17 00:00:00 2001 From: Haris Angelidakis <64154020+harisang@users.noreply.github.com> Date: Tue, 31 Mar 2026 01:16:16 +0300 Subject: [PATCH 14/16] small rephrasing Co-authored-by: Haris Angelidakis <64154020+harisang@users.noreply.github.com> --- docs/cow-protocol/reference/core/auctions/rewards.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index 2efc95a85..41a78bf11 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -49,7 +49,7 @@ The performance reward is capped from above and below using the function $$\text - Linea and Ink: $$\beta = 100\%$$, $$0.0015 \;\textrm{ETH}$$ - Plasma: $$\beta = 100\%$$, $$30 \;\textrm{XPL}$$ -The parameter $$\beta$$, which naturally corresponds to a revenue-sharing parameter between protocol and solvers, is set to 50% by default. The core team has a mandate to change this parameter for individual networks to a value in the interval [50%, 100%], given that the network has a total revenue less than 5% of the revenue on mainnet. +The parameter $$\beta$$, which naturally corresponds to a revenue-sharing parameter between protocol and solvers, is set to 50% by default. The core team has a mandate to change this parameter for individual networks, if needed, to a value in the interval [50%, 100%], given that the network has a total revenue less than 5% of the total protocol revenue. :::note From bb945adcae3d83907112aebcc682ddd9004e2e73 Mon Sep 17 00:00:00 2001 From: Felix Henneke Date: Tue, 7 Apr 2026 14:01:06 +0200 Subject: [PATCH 15/16] add CIP number and snapshot link --- docs/cow-protocol/reference/core/auctions/rewards.md | 6 +++--- 1 file changed, 3 insertions(+), 3 deletions(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index 41a78bf11..367d7c1de 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -5,7 +5,7 @@ sidebar_position: 3 # Solver rewards -The protocol is currently subsidizing the solver competition on all chains it operates on, by rewarding solvers on a weekly basis (currently, every Tuesday) with rewards paid in COW. Solvers are rewarded based on their performance and participation in the solver competition as specified by [CIP-20](https://snapshot.org/#/cow.eth/proposal/0x2d3f9bd1ea72dca84b03e97dda3efc1f4a42a772c54bd2037e8b62e7d09a491f), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-38](https://snapshot.org/#/cow.eth/proposal/0xfb81daea9be89f4f1c251d53fd9d1481129b97c6f38caaddc42af7f3ce5a52ec), [CIP-48](https://snapshot.org/#/cow.eth/proposal/0x563ab9a66265ad72c47a8e55f620f927685dd07d4d49f6d1812905c683f05805), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), [CIP-67](https://snapshot.box/#/s:cow.eth/proposal/0xf9ecb08c4738f04c4525373d6b78085d16635f86adacd1b8ea77b2c176c99d32), [CIP-74](https://snapshot.org/#/s:cow.eth/proposal/0x0c70c8cd92accee872b52614b4fa10e3e3214f45c5b6857f7e88e910607a3c1d), and CIP-XX(add snapshot link). Solver rewards for participating in the price estimation competition and providing quotes that are needed for the gas estimates and limit price computations of market orders, which from now on we will call price estimation or quote rewards, are specified in [CIP-27](https://snapshot.org/#/cow.eth/proposal/0x64e061568e86e8d2eec344d4a892e4126172b992cabe59a0b24c51c4c7e6cc33), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), and [CIP-72](https://snapshot.box/#/s:cow.eth/proposal/0xc1b1252f0c99126b4e09730022faa31a7bb58073a3dc064c19b74d44164c39a7). +The protocol is currently subsidizing the solver competition on all chains it operates on, by rewarding solvers on a weekly basis (currently, every Tuesday) with rewards paid in COW. Solvers are rewarded based on their performance and participation in the solver competition as specified by [CIP-20](https://snapshot.org/#/cow.eth/proposal/0x2d3f9bd1ea72dca84b03e97dda3efc1f4a42a772c54bd2037e8b62e7d09a491f), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-38](https://snapshot.org/#/cow.eth/proposal/0xfb81daea9be89f4f1c251d53fd9d1481129b97c6f38caaddc42af7f3ce5a52ec), [CIP-48](https://snapshot.org/#/cow.eth/proposal/0x563ab9a66265ad72c47a8e55f620f927685dd07d4d49f6d1812905c683f05805), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), [CIP-67](https://snapshot.box/#/s:cow.eth/proposal/0xf9ecb08c4738f04c4525373d6b78085d16635f86adacd1b8ea77b2c176c99d32), [CIP-74](https://snapshot.org/#/s:cow.eth/proposal/0x0c70c8cd92accee872b52614b4fa10e3e3214f45c5b6857f7e88e910607a3c1d), and [CIP-85](https://snapshot.box/#/s:cow.eth/proposal/0xb488c343df3ba5f3857a4c7a920a74e18c13a2cdce99d27af34216803da6abff). Solver rewards for participating in the price estimation competition and providing quotes that are needed for the gas estimates and limit price computations of market orders, which from now on we will call price estimation or quote rewards, are specified in [CIP-27](https://snapshot.org/#/cow.eth/proposal/0x64e061568e86e8d2eec344d4a892e4126172b992cabe59a0b24c51c4c7e6cc33), [CIP-36](https://snapshot.org/#/cow.eth/proposal/0x4e58f9c1208121c0e06282b5541b458bc8c8b76090263e25448848f3194df986), [CIP-57](https://snapshot.box/#/s:cow.eth/proposal/0x46d4fea1492207cf400fcb7a01141a7d4c730791d658cc77236941fc9eb7dccb), and [CIP-72](https://snapshot.box/#/s:cow.eth/proposal/0xc1b1252f0c99126b4e09730022faa31a7bb58073a3dc064c19b74d44164c39a7). :::note @@ -13,7 +13,7 @@ For the interested reader, the main source of truth for the weekly payments to s ::: -## Solver competition rewards (CIPs 20, 36, 38, 48, 57, 67, 74, XX) +## Solver competition rewards (CIPs 20, 36, 38, 48, 57, 67, 74, 85) ### Performance rewards @@ -61,7 +61,7 @@ There is no guarantee that the per-auction rewards are greater than the costs of ### Consistency rewards -With CIP-XX (add snapshot link), the protocol introduced consistency rewards. These rewards are based on aggregate metrics evaluated over the full accounting week and are intended to incentivize consistent, reliable solver behavior, broad token coverage, and other aspects the core team considers important for maintaining healthy competition. +With [CIP-85](https://snapshot.box/#/s:cow.eth/proposal/0xb488c343df3ba5f3857a4c7a920a74e18c13a2cdce99d27af34216803da6abff), the protocol introduced consistency rewards. These rewards are based on aggregate metrics evaluated over the full accounting week and are intended to incentivize consistent, reliable solver behavior, broad token coverage, and other aspects the core team considers important for maintaining healthy competition. Concretely, in each auction, solver $$i$$'s contribution to the consistency budget is From cf3d5c14ff6bfca3183ca2d8eccfea74a1159133 Mon Sep 17 00:00:00 2001 From: Felix Henneke Date: Tue, 7 Apr 2026 14:01:15 +0200 Subject: [PATCH 16/16] small reformulation --- docs/cow-protocol/reference/core/auctions/rewards.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index 367d7c1de..bf109e816 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -39,7 +39,7 @@ The performance reward calculation can result in a negative value, in which case ::: -The performance reward is capped from above and below using the function $$\textrm{cap}(x) = \max(-c_l, \min(c_u, x))$$, where $$c_u$$ is equal to a chain-specific $$\beta$$ percent of the protocol fee (excluding partner fees) that the protocol earned from the trades in all solutions successfully executed onchain by the solver in that auction, and $$c_l$$ is chain-specific as well. $$\beta$$ and $$c_l$$ are determined by the following values: +The performance reward is capped from above and below using the function $$\textrm{cap}(x) = \max(-c_l, \min(c_u, x))$$, where $$c_u$$ is equal to a chain-specific fraction $$\beta$$ of the protocol fee (excluding partner fees) that the protocol earned from the trades in all solutions successfully executed onchain by the solver in that auction, and $$c_l$$ is chain-specific as well. $$\beta$$ and $$c_l$$ are determined by the following values: - Ethereum mainnet, Arbitrum, and Base chain: $$\beta = 50\%$$, $$c_l = 0.010 \;\textrm{ETH}$$ - Gnosis Chain: $$\beta = 100\%$$, $$10 \;\textrm{xDAI}$$