Grant Application: Open-Source Tool for Verifying MEV Blocker Transactions

Grant Title: Development of an Open-Source Tool for Verifying MEV Blocker Transactions

Author:

• Name: Artem
• GitHub: Mefiseru, hayashidevs
• Email: f92388556@duck.com
• Discord: hayashidev.april

About You: I am a Python developer with six years of experience, currently working on an anonymous P2P messenger using Web3 technology. My expertise lies in blockchain interaction and Django-based web applications.

Grant Category: Developer tools (SDK)

Grant Description: This project aims to build an open-source tool that verifies MEV Blocker transactions, maximizes user refunds, and flags rule violations. The tool will operate as a standalone service with dependencies on an archive RPC node and Dune, running its logic on each newly seen block with some delay. Communication will be through various channels such as Telegram (via python-telegram-bot mainly because of async), Slack, Dune, and stderr.

Grant Goals and Impact: The primary goal is to develop a reliable and efficient tool to verify MEV Blocker transactions. This will maximize user refunds and provide real-time monitoring and alerts, enhancing the transparency and security of the CoW Protocol ecosystem. The successful execution of this project will benefit users by ensuring fair transaction processes and increasing trust in the protocol.

Milestones:

| Milestone | Payment (xDAI) | |----------------------------------|----------------| | Data Gathering | 1000 xDAI | | Bundle Simulation | 2000 xDAI | | Alerting and Productionisation | 1000 xDAI | | Total | 4000 xDAI |

Milestone Descriptions:

Milestone 1: Data Gathering

• Tasks:
  • Fetch block contents from the RPC.
  • Identify potential MEV Blocker bundles from Dune.
• Outcomes:
  • A robust data gathering service that accurately fetches and identifies relevant block data.

Milestone 2: Bundle Simulation

• Tasks:
  • Apply a greedy algorithm to compute merged bundle candidates.
  • Simulate refunds from bundle candidates using trace_callMany with stateDiff.
  • Compare the optimal outcome for users with the actual payout received.
• Outcomes:
  • A simulation service that accurately calculates and compares potential refunds.

Milestone 3: Alerting and Productionisation

• Tasks:
  • Create a development container and Docker image.
  • Develop deployment instructions.
  • Integrate alert channels (logs, Slack, Telegram).
• Outcomes:
  • A production-ready tool with integrated alerting capabilities.

Funding Request: The total funding requested is 4000 xDAI, justified by the scope and complexity of the project, as well as the anticipated impact on the CoW Protocol ecosystem. I would prefer to receive the funding in xDAI.

Budget Breakdown:

| Category | Amount (xDAI) | |----------------|---------------| | Development | 2500 xDAI | | Testing | 700 xDAI | | Deployment | 300 xDAI | | Documentation | 300 xDAI | | Miscellaneous | 200 xDAI | | Total | 4000 xDAI |

Gnosis Chain Address (to receive the grant): 0xC6C985637eabC798c232dDAd3afFde525242dFd7

Other Information: This project builds on my previous work in blockchain and Django, ensuring a high level of reliability and performance. I have attached relevant documents and previous work samples for reference.

Referral: Olga Fetisova

Terms and Conditions: By submitting this grant application, I acknowledge and agree to be bound by the CoW DAO Participation Agreement and the CoW Grant Terms and Conditions.