Working on a protocol for solvers

Solvers Protocol is an essential infrastructure solution designed to support and streamline the operations of solvers in the De Fi space. To understand the significance of this platform, it is crucial to grasp the role and requirements of solvers.

Solvers are individuals / softwares / even algorithms that assist De Fi users and traders in finding optimal routes for their transactions / intents, ultimately saving them money on gas fees and potentially uncovering profitable opportunities which they would not have found otherwise. Solvers are not limited to defi and can be extended to any requirements over time provided its reasonable across blockchains.

There are various types of solvers in the ecosystem.

1. Solvers that provide routes for profitable trades: For example, if a user wants to sell 1 ETH for 3000 USDC, a solver might discover that by routing the transaction through 1 ETH → 3100 DAI → 3080 USDC, the user could gain an additional 80 USDC.
2. Solvers can provide route not just for token trading, but for NFT trading, new token discovery, strategy execution and much more.
3. Solvers that protect users from MEV by providing routes that are safer that are not exposed to front running, back running and sandwich attacks
4. Solvers that provide liquidity on demand, ensuring that users can execute their desired trades by sourcing the necessary liquidity from various pools, AMMs and protocols.

What's solvers protocol though and why?

Essentially its modularizing sections for someone to build solvers independently for different protocols that delegates work to solvers.

Imagine solvers is a race car, what solvers protocol ? Provide it with better parts for the car so it runs fast and comes out as a winner, someone who's building a solver can use the parts give by us to build a solver, they can modify the components themselves for better efficiency or write their own component. Essentially what we are trying to do is give components that are reusable and can be used for multiple protocols.

Apart from this, provide them an infrastructure to monitor and track other solvers with solver explorer : https://solvers.pro/explorer (beta) , in-memory state access of different amms and liquidity pools, this help them write better algorithms for maximizing utility.

Apart from this, devs can write components that are useful for different protocols and share it with other solvers. This opens up a lot of market for solvers and devs who has expertise in specific part of the solver pipeline.

Infrasture so solvers can be built easily by the new protocols and devs who wants to serve users welfare to the maximum at a cheaper cost. And its not easy, each solver has to constanly makes sure that :

1. Ensuring 24/7 uptime of their solvers to capture order flow.
2. Developing code to monitor order history and profits using external services like Etherscan or Nansen.
3. Keeping track of wallet status, health, and potential tax implications on profits.
4. Tracking solver rewards and successful trades.
5. Setting up and maintaining RPC connections for various networks like Ethereum or.

Why?

Protocols like across, dln and cowswap already provide their baseline solver bot code, but much of the code is repeated can be used interchangly across protocols. And for someone who is beginning the journey will get lost in the codebase though, its alot of code.

It makes sense to have reusable components and infrasture modules for solvers as the upcoming orderflow market will touch 5-10 billion $ in volume since intent markets are evolving (extrapolating data from : https://orderflow.art/?isOrderflow=true) and it is contibruting extensively for the UX of blockchain ecosystem overall.

A lot needs to be done, see you soon at your terminals.

Fin.