Kolibrio
  • Kolibrio Orderflow Service
  • Solana
    • How it works
    • API: Quick Start
      • SendTransaction
    • FAQ
    • Advanced
      • Subsidy Transactions
      • How to Protect Against Frontrunning on SOL
      • Stats API
  • Ethereum
    • How it works
    • API: Quick Start
      • eth_sendRawTransaction
      • eth_sendBundle
      • eth_getTransactionByHash
      • eth_getTransactionCount
    • Pending Transactions on Chain Explorer (Etherscan)
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  • ETH Transaction Pipeline Flow
  • Gas Cost Kickback
  1. Ethereum

How it works

PreviousEthereumNextAPI: Quick Start

Last updated 6 months ago

ETH Transaction Pipeline Flow

1

ETH Originator sends a target transaction to Kolibrio OFA

The originator submits the target transaction using eth_sendRawTransaction or eth_sendBundle

2

Submission to TrustedBuilders

Kolibrio sends the transaction to trusted builders for immediate block inclusion. The default builders are [titan, beaver, rsync, flashbots]

3

Auction

Kolibrio OFA simulates the target transaction and shares a signal (transaction without signature) with whitelisted arbitrage searchers. If bids are high enough, it merges the original transaction with these bids and broadcasts the bundle to trustedBuilders for competing inclusion with the single original transaction from the previous step.

4

Settlement and Revenue Distribution

If the arbitrage trade is profitable, it will be included sequentially after the target transaction. Revenue is automatically distributed in ETH within the same bundle as a transfer to the address associated with the api_key used in the original request.

Gas Cost Kickback

If a transaction is broadcasted exclusively to Kolibrio’s RPC, the originator can receive an extra gas rebate. This is achieved by sharing the original transaction exclusively with a single builder at a given time, preserving part of the priority fee that would otherwise be spent in a PBS auction. The original transaction is rebroadcasted just before the slot to ensure that if the initial builder doesn’t land the block, the winning builder still receives and includes the transaction.

Kolibrio facilitates the gas price optimization process and sends the gas rebate to the address associated with the api_key on a monthly basis.