Solver Incentive Structures

Solver incentive structures are the economic mechanisms that motivate independent agents to act as solvers within a network. These incentives are typically designed to ensure that solvers prioritize user welfare, such as providing the best execution price, while also remaining profitable.

Incentives may include direct fees paid by users, rewards from the protocol for successful execution, or the ability to capture a portion of the MEV generated during the process. The design of these structures is critical for maintaining a healthy and competitive solver ecosystem.

If incentives are too low, there may not be enough solvers to ensure efficient execution; if they are too high, it may lead to excessive rent-seeking. Protocols must balance these economic levers to attract high-performing solvers while keeping the system cost-effective for users.

This field draws heavily on game theory and mechanism design to align the interests of all participants.