// GLOSSARY -- DEFI

What is a Solver?

1 min read Updated

A solver is a specialized entity in intent-based DeFi systems that competes to fulfill user trading intents by finding optimal execution paths — sourcing liquidity from DEXes, private inventory, cross-chain pools, or other sources to provide the best price.

WHY IT MATTERS

In intent-based architectures, solvers are the execution engine. When a user (or agent) submits a trading intent, solvers compete in an auction to fulfill it. The solver offering the best execution wins and earns fees for the service.

Solvers can be sophisticated operations. They maintain liquidity across multiple chains and protocols, use proprietary routing algorithms, hedge their exposure, and optimize for gas efficiency. The competition between solvers drives better prices for traders.

For agents, solvers handle the complexity of trade execution. Instead of an agent needing to understand every DEX's quirks, it submits an intent and lets professional solvers handle routing, gas optimization, and MEV protection.

FREQUENTLY ASKED QUESTIONS

How do solvers make money?
Solvers earn the spread between their execution cost and the price they offer to the user. In competitive auctions, this spread is thin — which benefits traders. Some protocols also provide solver incentives.
Can anyone become a solver?
Technically yes, but competitive solving requires significant capital, infrastructure, and expertise. Most protocols have a permissioned solver set initially, moving toward permissionless over time.
What happens if no solver fills an intent?
The intent expires unfilled. The user can resubmit with adjusted parameters (wider price tolerance, longer deadline). For agents, this should trigger a fallback to direct DEX routing.

FURTHER READING

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