Grant Title:

A data pipeline for calculating trade envy of CoWAMM pools

Author:

Name: Thomas Niedermayer

GitHub Username: Tommel71

Email: thomas.n71@gmail.com

Experiences and qualifications

My name is Thomas Niedermayer, I am a data engineer at Iknaio where my main focus is on developing Graphsense, the leading open source crypto asset analytics software and on creating analyses for law enforcement to solve large scale crypto crime cases. This year, I published a paper on detecting bots on Ethereum (Detecting Financial Bots on the Ethereum Blockchain | Companion Proceedings of the ACM Web Conference 2024), and I have written bots on the Harmony blockchain in the past. I hold a bachelor’s degree in Mathematics and a master’s degree in Data Science.

Grant Description:

CoW AMM pools are designed to protect against Loss Versus Rebalancing (LVR) and aim to deliver superior returns to liquidity providers. However, the current level of solver utilization of CoW AMM liquidity in CoW Protocol settlements limits the potential APY and overall success of the product. This grant seeks to address this issue by developing a robust solution to:

Quantify Missed Opportunities: Accurately measure the volume and surplus not captured by solvers failing to integrate CoW AMM liquidity effectively. Automate and Scale Analysis: Automate the “trade envy” computation process for multiple token pairs across chains and make results accessible to the product team for informed decision-making. Support Product Success: Provide actionable insights to incentivize solver behavior and drive higher adoption of CoW AMMs, unlocking their full economic potential. Grant Goals and Impact:

Grant Goals: Accurately quantify missed surplus opportunities for CoW AMM pools to optimize solver integration. Automate weekly reporting for actionable insights. Potential Impact: Higher returns and APY for liquidity providers, improving CoW AMM attractiveness. Increased competitiveness of CoW Protocol through better liquidity utilization.

Type of Grant

Milestones based

Milestones

These are the milestones to be met:

Milestone	Due Date	Payment
Basic Functionality	April 22nd 2025	xDai 1333
Extended Functionality	April 29th 2025	xDai 1333
Deployable Project	May 12th 2025	xDai 1334

Milestone 1

Basic Calculation Logic for a single CoWAMM pool Query Dune data (price and settlement data) Query data from node (helper contracts) Query caching Dashboard to show metrics aggregated on solver-level or pool-level

Milestone 2

Consider multiple CoWAMM pools for calculation Allow configuration for the calculation on different blockchains Allow invocation of script to update database and show most recent data on trade envy.

Milestone 3

Dockerize Integrate into existing infrastructure Allow weekly incremental data updates using GitHub actions

Length

Start Date in April, End date in May

Funding Request:

The expected time effort for this project is 80 hours or about 4000 xDai.

Justification: Scope and Complexity: The project involves refactoring and extending existing scripts, developing automation pipelines, and scaling to support multiple token pairs and chains. Additionally, to make sure calculations are correct, testing has to be implemented on select settlements. Development and Automation: Funding will cover time and resources to build reliable and automated weekly reporting systems. Impact: The project directly enhances the CoW AMM product by increasing solver adoption, creating value for liquidity providers and the broader CoW Protocol ecosystem. Budget Breakdown:

All of the budget will be allocated to the development of the data pipeline.

Gnosis Chain Address (to receive the grant):

0xb49CaA161850715eba7B9aDfba51BAFF2e9E3252

Other Information:

I am working on this currently together with Felix Leupold

Terms and Conditions:

By submitting this grant application, I acknowledge and agree to be bound by the CoW DAO Participation Agreement (https://gateway.pinata.cloud/ipfs/Qmf9MYhcG2pFrDoVy13p6FWeVF4nG9HbJvRfYYbhazTCFe) and the CoW DAO Grant Agreement Terms (https://bafkreifcftgaleyxkekkic36beyveiomqmlwyduyfh3s25zj3uyngr6ht4.ipfs.dweb.link/).