Increase Numeber of Whilisted Resolvers

2.1 General Proposals
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Hello everyone,

This is Filius from OTEX. We have been developing solving technology for a year now and are ready to integrate it to 1inch Fusion. The first version of our resolver is already running in production (https://app.1inch.io/#/1/earn/delegate/0xc975671642534f407ebdcaef2428d355ede16a2c). We are lucky enough to have a decent capital buffer to be part of the top 5 resolvers in terms of staked 1inch. However, I believe it would be beneficial for the competition to increase the number of whitelisted resolvers.

Even though we are part of the top 5 resolvers right now, the possibility of getting demoted out of the top 5 and not having the priviledge to fill orders quickly makes us wonder if it is worth it to invest time and energy developing technology for 1inch Fusion. Even if we develop a great system, our performance will depend of factors beyond our reach (i.e. the amount of capital we can stake). Hence, I would like to discuss the possibility of extending the number of whitlisted resolvers from 5 to a number between 7 and 10.

Additionally, I would also like to propose that resolvers are ranked based on some additional metrics. This could be discussed on a separate thread, but the idea would be to have some weighted average ranking formula, whereby some percentage depends on the amount of 1inch staked and the rest depends on a resolvers track record. A resolver would need to be given a “grace period” in which she is directly included as a whitelisted solver. During this period, the resolver will have the opportunity to operate as one of the top XYZ resolvers. 1inch Fusion will be able to collect metrics about the quality of its solutions and determine how beneficial its whitelisting is to users. In order to ensure that only serious resolvers are whitelisted, only resolvers that have gone through a KYB should be granted the whitelisting grace period.

Thank you for taking the time to read this thread. At OTEX, we ware looking forward to expand our reach within DeFi and optimize the allocation of taker volume across venues.

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Fully support it, I think increasing the number of whitelisted resolvers is a better way, maybe 10 is reasonable currently.

Additional metrics for ranking is not necessary, since the fusion is a permissionless system, it’s hard to calculate other metrics on-chain, we cannot use an off-chain centralized method to determine the whitelist.

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Awesome idea! I talked to the 1inch core developer team and they agree that 10 resolvers is doable and would better the user experience by further increasing the competition.

Are you able to formalize this into a proposal and post it to the forum? It is pretty similar to [1IP-12] Improve Fusion Auction Resolver Competition, and you’re free to use that as a template to get you started.

Alternatively, I, or one of the recognized delegates, can help you get this draft formalized if the process seems daunting. I’m participating in ETHDenver this week so my responses might be a little slower that usual.

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I formalized this into a Phase-2 proposal, here is the link: Increase the Number of Whitelisted Fusion Mode Resolver to 10.

Please add any feedback you have over there.

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This is great. Really appreciate that you took this one step forward @RoundElephant. We were pushing some upgrades to the resolver and just got a chance to look back at this. Providing feeback now.

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It has been progressed to the 3-day temperature check vote. If it is successful, then the final 5-day Snapshot vote will probably start on Thursday.

Assuming all goes well, the proposal could be implemented as early as Wednesday, March 15th.