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Run a Resolver

Resolvers execute user actions after assets have been indexed on the destination chain. They earn resolver fees for each successful execution.

What Resolvers Do​

1. MONITOR INDEXED MESSAGES
   └── Watch for messages with pending actions

2. VALIDATE PROFITABILITY
   └── Check: resolver fee > gas cost + profit margin

3. EXECUTE ACTION
   └── Call Smart Account with user's signed action

4. EARN FEE
   └── Resolver fee paid upon successful execution

Requirements​

RequirementMinimumRecommended
CPU2 cores4 cores
RAM2 GB4 GB
Storage10 GB20 GB
Network10 Mbps100 Mbps
ETH (destination)0.1 ETH0.5 ETH
Tokens (optional)0Variable

Note: Some actions require resolvers to provide ETH or tokens upfront, reimbursed from fees. This requires liquidity.

Quick Start​

1. Clone Repository​

git clone https://github.com/pons-network/resolver
cd resolver
npm install

2. Configure Environment​

cp .env.example .env

Edit .env:

# Mode
OPERATOR_MODE=executor

# Wallet (NEVER use your main wallet)
PRIVATE_KEY=your_private_key_here

# Chain Configuration
DESTINATION_CHAIN_ID=88991

# RPC Endpoints
DESTINATION_RPC_URL=https://rpc.testnet.arc.network

# Fee Configuration
MIN_RESOLVER_FEE=150000   # Minimum fee (in token units)
MIN_PROFIT_BPS=10         # 0.1% minimum profit margin

3. Run Resolver​

# Development
npm run start -- --mode executor

# Production (with PM2)
pm2 start npm --name "pons-resolver" -- run start -- --mode executor

# Docker
docker-compose up -d resolver

Configuration Reference​

Core Settings​

# Required
PRIVATE_KEY=               # Operator wallet
DESTINATION_RPC_URL=       # Destination chain RPC

# Chain ID
DESTINATION_CHAIN_ID=88991 # Arc Testnet

Fee Settings​

# Minimum fee to process
MIN_RESOLVER_FEE=150000    # Minimum fee (in token units)

# Minimum profit margin
MIN_PROFIT_BPS=10          # 0.1% of transaction

# Skip unprofitable transactions
SKIP_UNPROFITABLE=true

Funding Settings​

Some actions require the resolver to provide ETH or tokens:

# Maximum ETH to provide per transaction
MAX_ETH_FUNDING=0.1        # 0.1 ETH max

# Maximum token reimbursement to accept
MAX_REIMBURSEMENT=500      # Max reimbursement amount

# Enable/disable funding
ENABLE_FUNDING=true

Performance Settings​

# Concurrent processing
MAX_CONCURRENT_JOBS=5

# How often to check for new messages
POLL_INTERVAL_MS=5000

Docker Deployment​

docker-compose.yml​

version: '3.8'

services:
  resolver:
    build: .
    command: ["npm", "run", "start", "--", "--mode", "executor"]
    env_file:
      - .env
    restart: unless-stopped
    deploy:
      resources:
        limits:
          cpus: '2'
          memory: 2G

Run​

docker-compose up -d resolver
docker-compose logs -f resolver

Running Both Indexer + Resolver​

For maximum earnings, run both:

# Using --mode both
npm run start -- --mode both

# Or separate processes
pm2 start npm --name "pons-indexer" -- run start -- --mode indexer
pm2 start npm --name "pons-resolver" -- run start -- --mode executor

Funding Requirements​

Simple Actions (No Funding)​

Most cross-chain transfers only need gas:

User action: Bridge tokens
Resolver needs: Gas only (~0.002 ETH)

Advanced Actions (With Funding)​

Some actions require the resolver to provide tokens:

User action: Bridge tokens and swap for WETH
Resolver provides: Gas + DEX swap execution
Resolver reimbursed: From user's Smart Account fees

Funding Configuration​

# Only resolve actions within your liquidity
MAX_ETH_FUNDING=0.1        # Cap ETH exposure
MAX_REIMBURSEMENT=500      # Cap token reimbursement

# Disable if you don't want to provide liquidity
ENABLE_FUNDING=false       # Only resolve simple actions

Profitability Calculation​

The resolver checks profitability before executing:

Profit = resolver_fee - gas_cost

If Profit > MIN_PROFIT:
  → Execute action
Else:
  → Skip (let other resolvers handle it)

Example​

Resolver fee: $0.15 equivalent
Gas cost: 0.002 ETH (~$5)

Profit = 0.15 - 5 = -$4.85 (unprofitable)
→ Skip (unprofitable)

With higher fee:
Resolver fee: $6 equivalent
Gas cost: 0.002 ETH (~$5)

Profit = 6 - 5 = $1
→ Execute!

Monitoring​

Health Check​

# Check process status
pm2 status pons-resolver

# View logs
pm2 logs pons-resolver --lines 100

Key Metrics​

MetricHealthyAction if Unhealthy
Actions executed/hour>0Check for indexed messages
Success rate>95%Check gas, review errors
Wallet balance>0.05 ETHRefill wallet
Profit per action>$0Increase MIN_RESOLVER_FEE

Log Messages​

✅ Good:
[INFO] Resolver started
[INFO] Found pending action for Smart Account 0xabc...
[INFO] Action executed successfully, earned resolver fee

⚠️ Warning:
[WARN] Skipping unprofitable action: fee 0.05 < gas 0.1
[WARN] Low wallet balance: 0.04 ETH

❌ Error:
[ERROR] Action execution failed: revert
[ERROR] Insufficient gas for execution

Troubleshooting​

"Action execution failed"​

# Check the specific error in logs
# Common causes:
# - Slippage too high (for swaps)
# - Deadline expired
# - Contract reverted

# Review transaction on block explorer
cast call --trace <tx_hash> --rpc-url $DESTINATION_RPC_URL

"Unprofitable - skipping"​

  • This is normal behavior
  • Means fee is less than gas cost
  • User set fees too low
  • Let other resolvers handle or wait for fee market adjustment

"Already executed"​

  • Another resolver processed this action first
  • Normal competition behavior
  • Increase uptime to catch more

"Funding exceeds limit"​

# Action requires more ETH than your MAX_ETH_FUNDING
# Either:
# 1. Increase MAX_ETH_FUNDING (requires more capital)
# 2. Skip these actions (current behavior)

Profitability​

Costs​

ItemEstimated Cost
Gas per execution~0.002 ETH
Server (VPS)~$10-50/month
Capital (optional)Variable

Revenue​

VolumeMonthly TransactionsEarnings Potential
Low~3,000/monthCovers server + gas
Medium~15,000/monthProfitable
High~30,000/monthStrong returns

Combined (Indexer + Resolver)​

Running both roles maximizes earnings per transaction. Actual returns depend on fee rates and network volume.

Best Practices​

Wallet Management​

  • Use dedicated wallets
  • Separate operational wallet from profit storage
  • Set up balance alerts
  • Regularly withdraw earnings

Risk Management​

  • Start with small MAX_ETH_FUNDING
  • Monitor profit margins
  • Don't over-extend capital
  • Keep emergency ETH reserve

Competition​

  • Higher uptime = more opportunities
  • Faster execution = win more races
  • Better RPC = faster detection
  • Consider running multiple instances

Next Steps​