Rebating Transaction Costs #

Rebating a transaction is determined by:

• Is the function that is called in the transaction eligible?

  • By tracking contract function calls we are better able to provide observability in the rebating process, we can also coordinate with teams wishing to provide more incentives for specific actions and behaviors

• If yes, what is the percentage that can be rebated?

  • This percentage value is a protocol value that can be adjusted

• What is the transaction cost for the eligible transaction?

  • Thi s the value that the end user utilized in submitting their transaction.

• Calculate the Gas Reporting Index value

  • This uses the gas pricing information from api.txprice.com to calculate the gas pricing information to be used in calculating the rebate amount for your transaction

• Calculate the rebate amount from the bundle profit surplus

  • We take how much profit the arbitrage made and split it among all eligible trades within that bundle

Rebate Mechanism #

1. Eligible transactions are rebated based on the 80th confidence interval for gas estimation pricing.

2. This is proportionally distributed based on transactional weight. Note: a naive formula would consider pairings, then slippage tolerance and finally transactional amount

3. The amount of compensation is the remainderless fees to miners and network operational transactional costs.

4. Compensation payouts occur no later than a half hour

Contract Function Eligibility #

Rebate Calculations #

Note: naive implementation, expect changes

bundleCost = mev bribe + bundleTxs[1,2,…]

gasAllowance = mev bribe - bundleTxs[1,2,…]

BundleTransactionGas[1,2,…] = Individual Gas Cost

BundleId = The Block Number (or hash?) in which the bundle was included

max_gasRebate = (BundleId(BundleTransactionGas[1,2,…]))

{
  "confidence": 80,
  "price": 150,
  "maxPriorityFeePerGas": 1.75,
  "maxFeePerGas": 100
}

Workflow Diagram #