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Gregory Markou - The Dirty Secret of Solver Markets
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Gregory Markou - The Dirty Secret of Solver Markets

Secret3 Secret3 May 26, 2025 2 min read
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Gregory Markou - The Dirty Secret of Solver Markets
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1. Importance of Pathfinding and Filling

Greg emphasized the dual roles of solvers in the blockchain space: pathfinding and filling. Pathfinding involves determining the optimal route for token swaps across multiple liquidity sources, while filling is the execution of transactions, which can include providing liquidity. Understanding these roles is crucial for improving user experience and enhancing the overall efficiency of decentralized exchanges.

2. Shift to Intent Market Dominance

Greg noted a significant shift in the market where intent markets are increasingly overtaking front-end exchanges. This change, exemplified by the growth of platforms like CowSwap, allows users to benefit from better price impacts and reduced risks of sandwich attacks. As intent markets become more popular, the competition among solvers will intensify, leading to more advantageous trading conditions for users.

3. Growth of Intent Bridging Space

According to Greg, the intent bridging market is poised for dramatic growth. Current statistics show that 35-40% of the bridge market is driven by intent, which equates to substantial dollar movements daily. As adoption of account abstraction increases, driven in part by user-friendly solutions, it is likely that the intent bridging space will continue to expand, potentially exceeding the traditional bridging methods.

4. The Role of Account Abstraction

Greg pointed out that the growth of the account abstraction market, though currently at a low adoption rate, holds the potential to significantly enhance the load on the intent space. For instance, as the share of accounts utilizing these abstractions grows, the efficiency and cost-effectiveness of transactions will improve, inflating the volume of transactions that solvers need to handle.

5. Market Competitiveness and Solver Economics

The competitiveness among solvers in the auction model, particularly seen in platforms like CowSwap, leads to fair pricing for users. Greg mentioned that a healthy market distribution suggests effective commoditization of solving services, fostering an environment where users receive optimal prices through competition, unlike in cases where a few players dominate, as seen with UniSwapX.

6. Challenges in Cross-Chain Transactions

Greg highlighted the complexities associated with cross-chain transactions, particularly the limitations around filling larger orders. As order sizes increase, the number of participating solvers decreases, leading to longer wait times for transaction fulfillment. This inefficiency presents a significant barrier for users seeking to engage in high-value trades across different chains, necessitating innovative solutions from the industry.

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