A numeric representation of a Keeper's contribution quality within the ecosystem.
The Rook Protocol includes a reputation algorithm that assigns to each Keeper a simple reputation score computed from observable actions that Keepers perform as part of the Keeper network.
A Keeper's reputation score is provided to the Protocol's Greenlight Algorithm, the algorithm which helps select the winner of an auction. The higher a Keeper's reputation, the more likely they are to be greenlit for an auction.
This ensures that Keepers are incentivized to maintain a high reputation, since higher reputation will increase their expected number of won auctions, and hence their expected returns.
- Good behavior
- Keeper submits a valid bid, is greenlit, and settles a transaction exactly as expected
- Somewhat good behavior
- Keeper submits a valid bid, is greenlit, and settles a transaction close to expectation
- Bad behavior
- Keeper submits a valid bid, is greenlit, and the transaction fails/reverts/is cancelled
- Keeper submits a valid bid, is greenlit, and no transaction is sent to the blockchain
- Very bad behavior
- Sending an auctionable transaction without bidding
- Sending an auctionable transaction without being greenlit
- Bypassing the Coordinator in any way
A reputation mark handed down to a Keeper by the Coordinator when something bad happens.
The inputs for determining a Keeper's reputation consist of a Keeper's auction history and are as follows:
Keeper's auction history
Successfully facilitate user trade
Failing to facilitate user trade by some means
Very bad behaviors
Doing horrible things
Under certain circumstances, the Rook DAO or Rook Labs may perform a reputation reset for a specific Keeper. These circumstances will be on a case-by-case basis. For example, if a new Keeper is integrating and had a series of bugs early on while fine-tuning their bot, and these bugs resulted in a lot of RepMarks. This would be good grounds for a reputation reset for that Keeper, once they have fixed the bugs, since there was no malicious intent.
Another example would be if all Keepers were hit with a slew of RepMarks as a result of a dramatic change on Ethereum due to a network upgrade or hard fork. In this case it may make sense to reset many or all Keeper's reputations.
Removal from the Rook Protocol
Bad behavior is expected to happen from time to time. Like the goaltender of a hockey team, Keepers will make many saves, but occasionally a goal will slip past them. They may even get a penalty for tripping someone. But the better goalies (Keepers) will have better save percentages and allow fewer goals over a large sample size.
The reputation system is not designed to prevent bad actions so much as to reward Keepers' investment into maintaining high execution and settlement quality.
If a Keeper chooses to repeatedly misbehave or abuse the system or protocol, it will be readily observable. Once it is noticed, there are more severe actions that the Rook DAO and Rook Labs can take, including the removal of the Keeper from the protocol, cutting them off from any future opportunities to profit through their participation.