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Our current rules around internal buffer trading are very simplistic and can be gamed quite easily.
Since gas costs currently don't matter for internalized trades you can find tiny opportunities that are not profitable due to gas costs. But if you internalize the same trade you get to take advantage of the opportunity to provide a better price for the user but in fact the protocol will end up paying the difference.
Suggested solution
Until we have a good long term solution for handling internal buffer trades we could consider introducing a flag in the driver (in the solver list) that can disable internalizations for solvers that seem to exploit the system.
That way we can continue using the solver without running the risk of paying for those costly trades while the solver maintainer implements a more "reasonable" strategy.
Alternatives considered
🤷♂️
This idea is only a bandaid that should be removed as soon as we get good rules for internal buffer trading that prevent this behavior.
Feel free to close this issue if you think this is not desired.
Additional context
Add any other context or screenshots about the feature request here.
Acceptance criteria
internalization can be disabled for each solver individually using a configuration flag
The text was updated successfully, but these errors were encountered:
Problem
Our current rules around internal buffer trading are very simplistic and can be gamed quite easily.
Since gas costs currently don't matter for internalized trades you can find tiny opportunities that are not profitable due to gas costs. But if you internalize the same trade you get to take advantage of the opportunity to provide a better price for the user but in fact the protocol will end up paying the difference.
Suggested solution
Until we have a good long term solution for handling internal buffer trades we could consider introducing a flag in the driver (in the
solver
list) that can disable internalizations for solvers that seem to exploit the system.That way we can continue using the solver without running the risk of paying for those costly trades while the solver maintainer implements a more "reasonable" strategy.
Alternatives considered
🤷♂️
This idea is only a bandaid that should be removed as soon as we get good rules for internal buffer trading that prevent this behavior.
Feel free to close this issue if you think this is not desired.
Additional context
Add any other context or screenshots about the feature request here.
Acceptance criteria
internalization can be disabled for each solver individually using a configuration flag
The text was updated successfully, but these errors were encountered: