From 1b6a031093c964d0f781e2e89bedc75e3b0ae707 Mon Sep 17 00:00:00 2001 From: Architsharma7 <90101251+Architsharma7@users.noreply.github.com> Date: Fri, 25 Sep 2026 20:03:27 +0530 Subject: [PATCH 1/4] added updated quote rewards section --- .../reference/core/auctions/rewards.md | 45 ++++++++++--------- 1 file changed, 24 insertions(+), 21 deletions(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index d74edc25e..e625aba2f 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -170,24 +170,27 @@ Consistency rewards introduce an additional strategic dimension; since the consi The price estimation competition is a separate competition where solvers provide the best response to a quote request. Quote requests look almost identical to single-order batch auctions, where there is only one order with a trivial limit price, and solvers propose executions of this order with the goal to maximize "out amount minus gas costs" in the case of a sell request, or minimize "in amount + gas costs" in the case of a buy request. -As 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), a solver that provides the best quote to an order that is then submitted is rewarded if and only if all of the following conditions are satisfied: - -1. The order is a fill-or-kill market order; -2. The quote is verified (i.e., its calldata successfully simulated in the autopilot); -3. The order was executed (not necessarily by the quoting solver); -4. The solver that provided the winning quote during order creation proposed an execution of the order (in at least one auction) that is at least as good as the quote, and that execution was not filtered out by the fairness filtering of the fair combinatorial auction mechanism. - -The current rewards for eligible quotes are as follows: - -- Ethereum mainnet: $$\min\{0.0007 ~\textrm{ETH}, 6 ~\textrm{COW}\}$$, -- Gnosis Chain: $$\min\{0.15 ~\textrm{xDAI}, 6 ~\textrm{COW}\}$$, -- Arbitrum: $$\min\{0.00024 ~\textrm{ETH}, 6 ~\textrm{COW}\}$$, -- Base Chain: $$\min\{0.00024 ~\textrm{ETH}, 6 ~\textrm{COW}\}$$, -- Avalanche-C Chain: $$\min\{0.006 ~\textrm{AVAX}, 6 ~\textrm{COW}\}$$, -- Polygon Chain: $$\min\{0.6 ~\textrm{POL}, 6 ~\textrm{COW}\}$$ -- BNB Chain: $$\min\{0.001 ~\textrm{BNB}, 6 ~\textrm{COW}\}$$ -- Linea: $$\min\{0.00003 ~\textrm{ETH}, 6 ~\textrm{COW}\}$$. -- Plasma: $$\min\{0.6 ~\textrm{XPL}, 6 ~\textrm{COW}\}$$. -- Ink: $$\min\{0.00003 ~\textrm{ETH}, 6 ~\textrm{COW}\}$$. - -where, again, the conversion from native token to COW is done by using an up-to-date price (specifically, the average native token/COW Dune prices of the past 24h before the payout are used to determine these exchange rates). +As 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), [CIP-88](https://snapshot.box/#/s:cow.eth/proposal/0x3fc7dc270f3e315e9bc2449bf9f5d0288046125f82b9b140b5866c2886fe71ac), quote rewards are paid from a dedicated budget targeting 10% of protocol revenue, separate from the performance and consistency reward budget. + +This budget is divided among the orders in scope giving each order $$o$$ a budget $$B_o$$. +For each order $$o$$, the quote of solver $$i$$ is scored by its error against the executed price + +$$ +e_{i,o} = \left| \frac{q_{i,o} − x_o} {x_o} \right| +$$ + +where $$q_{i,o}$$ is the exchange rate of the solver's quote, adjusted for network and volume fee, and $$x_o$$ is the exchange rate at which the order was executed. +A solver that submits several quotes for the same order is counted once, with its best-priced quote. Only the five quotes with the smallest error are rewarded. + +Denoting this set by $$T_o$$, solver $$i$$ receives quote reward $$r_{i,o}$$ + +$$ +r_{i,o} = B_o \cdot \frac{1 / e_{i,o}^{2}}{\sum_{j \in T_o} 1 / e_{j,o}^{2}} +$$ + +and solvers outside $$T_o$$ receive nothing for that order. +If one or more quotes match the executed rate exactly, they split $$B\cdot o$$ equally. +A solver's quote reward for the accounting period is the sum of $$r_{i,o}$$ over all orders in scope, paid in COW as described in [accounting section](/cow-protocol/reference/core/auctions/accounting). + +The core team has a mandate to change how the quote reward budget is allocated among solvers, if needed, to strengthen the quote competition. +Any change to the allocation is announced to solvers in advance and reflected in this documentation. From 46b580433fd2d38f0335add1e9da49964f1c4497 Mon Sep 17 00:00:00 2001 From: Architsharma7 <90101251+Architsharma7@users.noreply.github.com> Date: Fri, 25 Sep 2026 20:05:11 +0530 Subject: [PATCH 2/4] updated per chain in quote rewards --- 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 e625aba2f..50258e9a8 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -170,7 +170,7 @@ Consistency rewards introduce an additional strategic dimension; since the consi The price estimation competition is a separate competition where solvers provide the best response to a quote request. Quote requests look almost identical to single-order batch auctions, where there is only one order with a trivial limit price, and solvers propose executions of this order with the goal to maximize "out amount minus gas costs" in the case of a sell request, or minimize "in amount + gas costs" in the case of a buy request. -As 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), [CIP-88](https://snapshot.box/#/s:cow.eth/proposal/0x3fc7dc270f3e315e9bc2449bf9f5d0288046125f82b9b140b5866c2886fe71ac), quote rewards are paid from a dedicated budget targeting 10% of protocol revenue, separate from the performance and consistency reward budget. +As 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), [CIP-88](https://snapshot.box/#/s:cow.eth/proposal/0x3fc7dc270f3e315e9bc2449bf9f5d0288046125f82b9b140b5866c2886fe71ac), quote rewards are paid from a dedicated budget targeting 10% of protocol revenue per chain, separate from the performance and consistency reward budget. This budget is divided among the orders in scope giving each order $$o$$ a budget $$B_o$$. For each order $$o$$, the quote of solver $$i$$ is scored by its error against the executed price From 96e1c0d57c5023961609022cfdbb8bd6532c534b Mon Sep 17 00:00:00 2001 From: Architsharma7 <90101251+Architsharma7@users.noreply.github.com> Date: Thu, 1 Oct 2026 17:27:01 +0530 Subject: [PATCH 3/4] updated equal splitting rule in CIP-88 --- docs/cow-protocol/reference/core/auctions/rewards.md | 12 ++++++------ 1 file changed, 6 insertions(+), 6 deletions(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index 50258e9a8..7d5b59246 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -89,7 +89,6 @@ There is no guarantee that the per-auction rewards are greater than the costs of ### Consistency rewards - 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 @@ -166,21 +165,22 @@ To summarize, truthfully revealing the (cost-adjusted) score that a solver can g Consistency rewards introduce an additional strategic dimension; since the consistency metric rewards competitive bids on executed market orders, solvers have an incentive to participate broadly across auctions with bids close to the winning one, even in cases where they do not expect to win the performance reward. At the same time, since bid quality is discounted by the settlement success rate, solvers should only submit bids they are prepared to settle. Executing out-of-market limit orders earns no consistency rewards; such executions are rewarded through performance rewards only. -## Price estimation competition rewards (CIPs 27, 36, 57, 72) +## Price estimation competition rewards (CIP 88) The price estimation competition is a separate competition where solvers provide the best response to a quote request. Quote requests look almost identical to single-order batch auctions, where there is only one order with a trivial limit price, and solvers propose executions of this order with the goal to maximize "out amount minus gas costs" in the case of a sell request, or minimize "in amount + gas costs" in the case of a buy request. -As 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), [CIP-88](https://snapshot.box/#/s:cow.eth/proposal/0x3fc7dc270f3e315e9bc2449bf9f5d0288046125f82b9b140b5866c2886fe71ac), quote rewards are paid from a dedicated budget targeting 10% of protocol revenue per chain, separate from the performance and consistency reward budget. +As specified in [CIP-88](https://snapshot.box/#/s:cow.eth/proposal/0x3fc7dc270f3e315e9bc2449bf9f5d0288046125f82b9b140b5866c2886fe71ac), quote rewards are paid from a dedicated budget targeting 10% of protocol revenue per chain, separate from the performance and consistency reward budget. +This replaces the flat reward per eligible quote set by [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), which no longer applies. This budget is divided among the orders in scope giving each order $$o$$ a budget $$B_o$$. For each order $$o$$, the quote of solver $$i$$ is scored by its error against the executed price $$ -e_{i,o} = \left| \frac{q_{i,o} − x_o} {x_o} \right| +e_{i,o} = \left| \frac{q_{i,o} - x_o} {x_o} \right| $$ where $$q_{i,o}$$ is the exchange rate of the solver's quote, adjusted for network and volume fee, and $$x_o$$ is the exchange rate at which the order was executed. -A solver that submits several quotes for the same order is counted once, with its best-priced quote. Only the five quotes with the smallest error are rewarded. +Only the five quotes with the smallest error are rewarded. Denoting this set by $$T_o$$, solver $$i$$ receives quote reward $$r_{i,o}$$ @@ -189,7 +189,7 @@ r_{i,o} = B_o \cdot \frac{1 / e_{i,o}^{2}}{\sum_{j \in T_o} 1 / e_{j,o}^{2}} $$ and solvers outside $$T_o$$ receive nothing for that order. -If one or more quotes match the executed rate exactly, they split $$B\cdot o$$ equally. +If one or more quotes have $$e_{i,o} = 0$$, these quotes share the whole of $$B_o$$ equally. A solver's quote reward for the accounting period is the sum of $$r_{i,o}$$ over all orders in scope, paid in COW as described in [accounting section](/cow-protocol/reference/core/auctions/accounting). The core team has a mandate to change how the quote reward budget is allocated among solvers, if needed, to strengthen the quote competition. From f8c412ae70195731a9c6c2020e21d1502155e874 Mon Sep 17 00:00:00 2001 From: Architsharma7 <90101251+Architsharma7@users.noreply.github.com> Date: Fri, 2 Oct 2026 00:14:18 +0530 Subject: [PATCH 4/4] updated scope and accounting period --- docs/cow-protocol/reference/core/auctions/rewards.md | 4 +++- 1 file changed, 3 insertions(+), 1 deletion(-) diff --git a/docs/cow-protocol/reference/core/auctions/rewards.md b/docs/cow-protocol/reference/core/auctions/rewards.md index 7d5b59246..a19dea15b 100644 --- a/docs/cow-protocol/reference/core/auctions/rewards.md +++ b/docs/cow-protocol/reference/core/auctions/rewards.md @@ -171,8 +171,10 @@ The price estimation competition is a separate competition where solvers provide As specified in [CIP-88](https://snapshot.box/#/s:cow.eth/proposal/0x3fc7dc270f3e315e9bc2449bf9f5d0288046125f82b9b140b5866c2886fe71ac), quote rewards are paid from a dedicated budget targeting 10% of protocol revenue per chain, separate from the performance and consistency reward budget. This replaces the flat reward per eligible quote set by [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), which no longer applies. +The budget is computed for each accounting period, which runs weekly from Tuesday 00:00 UTC to the following Tuesday 00:00 UTC, as described in [accounting](/cow-protocol/reference/core/auctions/accounting). -This budget is divided among the orders in scope giving each order $$o$$ a budget $$B_o$$. +The orders in scope are in-market fill-or-kill orders executed during the accounting period. +The budget is divided equally among them, giving each order $$o$$ a budget $$B_o$$. For each order $$o$$, the quote of solver $$i$$ is scored by its error against the executed price $$