Protocol Bidding: Enabling Protocols to Bid for Orderflow in MANTIS, an Alternative to Liquidity Mining


Composable’s ecosystem-agnostic intent settlement framework, MANTIS (Multichain Agnostic Normalized Trust-minimized Intent Settlement) strives to ensure that all participants are incentivized and properly rewarded for participation. Of course, solvers, users, and other individuals within the system have a rewards scheme. However, we also want to implement a more unique form of incentive: enabling protocols to bid for orderflow for transactions being settled from MANTIS.

Thus, we introduce the concept of protocol bidding to MANTIS. Essentially, protocols are able to provide a bid in the form of tokens to the MANTIS protocol. The size of this bid is considered by solvers in the algorithm that they use to determine an optimal settlement route for the user transaction intent. The bid volume is also taken into account when potential solutions are being scored, with solutions including protocols participating in bidding being ranked higher. As a result, protocols that bid to MANTIS increase their chances that MANTIS intent transactions will be settled using their platforms. The tokens bidded by these protocols will be used to offset user gas fees, as described in this previous forum post.

In the current post, we explore the concept of protocol bidding and the benefits that it delivers to various stakeholders in MANTIS and the Composable ecosystem.

The Solution


We want protocols to have an opportunity to influence order flow routed through their platforms from MANTIS, to the mutual benefit of themselves and users (i.e. by providing tokens). Therefore, one component solvers must consider in the auction process of determining an optimal solution is whether or not protocols have preloaded tokens to the MANTIS problem smart contract, effectively “bribing” for order flow. The solver algorithm must take these preloaded tokens/incentives into account. Thus, protocols can essentially bid on or “campaign” for order flow; this can be done by new or existing protocols.

Protocols would participate in bidding via a 3-step UI process, loading tokens for solvers, and then loading up tokens for gas rebates for users. Then, the relayer (and solvers, if both roles are combined) can take from the contracts post-settlement (once they have proof of fulfillment).

An example of how this would work would be:

Imagine USDC/ETH is roughly trading at the same price on multiple DEXes:

  • Uniswap
  • Sushiswap
  • Orca
  • Osmosis
  • Any new/recently-launched DEX (let this be called “X new DEX”)

Let’s assume that X new DEX is located on Solana. They just recently launched and are interested in driving their volume up. Instead of putting up liquidity mining incentives, they could instead bid for orderflow on MANTIS, as shown in the diagram below:

As long as the value of the bid is less than the value of the volume multiplied by swap fees, then it is a profitable trade for the DEX protocol. I feel as though new protocols would use this often to drive volume to their DEX. Moreover, this could be generalized to other protocols like perps, lending, and essentially any other on-chain activity, including NFT purchases.

Overall, this would work as follows:

  1. Protocols (such as DEXes) top up the problem smart contract with certain tokens into certain pools
  2. Solvers take the above into account in their solution calculations
  3. If protocols are successfully chosen as a component of the solution for the solver (and this solver has presented the best solution out of all solvers), then the order flow is routed through the protocol

Team Bidding

One interesting extension of this could be that applications could be allowed to bribe specific teams on the MANTIS application that are constantly on the leaderboard. These teams could be run via KOLs.

Technical Components

This requires a problem smart contract within MANTIS, which would be able to receive pre-loaded tokens.

  • Our “problem” contract would have xc-account
  • All solutions will be routed by MANTIS from the problem origin contract so it will have access to xc-account on each chain
    • So, the problem contract will have access to any tokens on that account
    • Reasonably, these accounts would have to have at least native tokens for gas fees and bridge fees
    • Or, the protocol can have xc-account and do extended allowance to MANTIS sent from the problem origin so the solution can peek into the allowance and pay fees

This would also require the UI for protocols to (1) initiate and submit tokens for their campaigns, and then to (2) subsequently monitor these campaigns.


There are a number of benefits from protocol bidding. First, protocols participating in campaigns will benefit from increased order flow (in fees, liquidity, etc.). This solution also improves the chances that a user’s transaction will be fulfilled, given that there are tokens readily available from these campaigns. Bidded tokens can also offset user gas fees, making the transaction less expensive for the user (or for the solver, if the solver is paying for users’ gas). Composable itself will benefit as well, as we can use this process to earn revenue before the rest of the stack is fully built up, allowing us to optimally continue to build our ecosystem.


In developing our novel ecosystem-agnostic intent settlement platform, Composable is able to introduce a novel incentive scheme, which we refer to as “protocol bidding”. In protocol bidding, various DeFi protocols (such as exchanges like Uniswap, Astroport, etc.) can submit bids in the form of tokens to the MANTIS problem smart contract. These bids are then taken into account by solvers as a part of their optimal solution generation algorithm. Solutions including settlement along protocols that participated in protocol bidding are ranked higher in our scoring system for potential solutions. Thus, protocols are able to incentivize solvers to create solutions that route orderflow through these protocols. This benefits all participants, including users, solvers, and of course the protocols themselves.


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Fascinating approach by Composable with MANTIS protocol bidding! It seems like a win-win for all parties involved. Protocols gain order flow, users get potentially lower gas fees, and the ecosystem grows dynamically. Curious to see how this will shape market competition and user experience in DeFi. Also my personal thread on X

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MANTIS introduces protocol bidding, incentivizing protocols to bid tokens for transaction settlement. This innovative approach rewards active involvement within the ecosystem.
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Protocol bidding represents a groundbreaking incentive scheme in DeFi. It’s not just about transactions; it’s about creating value for all - users, solvers, and protocols. #DeFiEvolution #Blockchain

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Fascinating read! The concept of protocol bidding introduced by Composable’s MANTIS framework is truly innovative. It’s impressive to see how DeFi protocols can actively participate in influencing order flow through token bids, creating a symbiotic relationship between protocols, solvers, and users.
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see my post and share thoughts :rocket: In this thread, we’re diving into @ComposableFin’s MANTIS and its latest trick: Protocol Bidding. Imagine DeFi protocols playing a strategic game, bidding tokens to direct where transactions flow. It’s a whole new playing field for both the big fish and the up-and-comers in DeFi.

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#ComposableInsights @ComposableFin

I’m glad you found the concept of protocol bidding introduced by Composable’s MANTIS framework fascinating! The innovation behind protocol bidding represents a paradigm shift in the way we approach composability and interoperability within the blockchain ecosystem. Let’s delve into the intricacies of this groundbreaking concept and explore how it stands out in the ever-evolving landscape of decentralized finance (DeFi).
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great way to explain the topic

Hey all, just studied this topic. I also wrote a thread on X about it, which you can find here:

I found it an greatly inspiring read, and I gotta admit that this topic was kinda new to me. I find it cool to see how new DeFi protocols on other blockchains can actively participate in influencing order flow through token bids, creating a symbiotic relationship between protocols, solvers, and users.

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