defi-research

Going to give a *sneak peak* about this paper w/ @ksk and others to FC before Twitter!

There's been a surge of interest in intent-based systems like @uniswapX or CoW Swap — their claim has been to help improve the acquisition of off-chain price data on-chain

But do they work?

Ph.D. student @berkeley_eecs. Research @gauntletnetwork. Geometry, dynamics, markets & intelligence.

The largest onchain marketplace. Buy and sell crypto on Ethereum and 10+ other chains.

ヽ(⌐■_■)ノ♪♬ @ @gauntlet/🤖Ventures/tldr/Aera \\ ¯\_(ツ)_/¯ Struggling with the nature of randomness \\ main: @gaa \\ /red-bull /defi-research maxi

Would like to know how solvers incur congestion fees due to the lack of inventory, even before they secure the exclusive rights to the orderflow by winning the auction. Don’t they merely simulate the execution such that congestion fees don’t price in?

In a fully permissionless intent system (so nothing that is live right now) where they are slashed if they don't deliver on the intent within some time period, they have to procure _some_ inventory to avoid getting slashed. The real problem is that if they all do this simultaneously they get worse prices

I see, so they execute simultaneously “just in case” 😂😂😂
But that sounds not very efficient if that’s the case lol

Well, its not 'just in case' — its because they entered the auction (and placed collateral/staked) and are trying to avoid the penalties for winning and not delivering (even if its at an unprofitable price)