# Smart Bidding: Gas Pricing Automation Strategies Source: https://ethereum-magicians.org/t/smart-bidding-gas-pricing-automation-strategies/22507 ## Summary The author proposes replacing the usual Slow/Medium/Fast gas pricing labels with five named bidding strategies, arguing that those labels are meaningless because everyone picks Fast. The proposed strategies are MAX_SPEED for earliest inclusion, TARGET_CPI for staying under a user-defined maximum fee, MEV_ROI for searchers seeking a minimum return on gas, CENSORSHIP_RESIST for preferring neutral builders or relays, and MAX_VALUE for choosing the best net payoff across batched transactions. Each strategy comes with key parameters, such as a 3.0 ROI threshold for MEV_ROI and a 20 gwei targetFee for TARGET_CPI in the example scenarios. The proposal is described as a draft, and feedback is being solicited before any formal proposal. ## Article Smart Bidding: Gas Pricing Automation Strategies Slow Medium Fast Users Pick Fast, who doesn’t want their transactions (or shipments/packages/etc) delivered fast? The semantics are thus meaningless for users. I am drafting a suggested alternative to the typical gas pricing nomenclature with a different view that captures what gas pricing actually is, a bidding process. The idea is to curate high-level bidding strategies vis a vie pricing their transaction in relation to a key objective/stated preference. These are not just for EOA’s, they are applicable potentially to ‘Agents’ as well Strategy Name Description Key Parameters Example Use Cases MAX_SPEED Aim for earliest possible on-chain inclusion, usually referencing top-percentile mempool tips. - maxFeePerGas (optional fallback) - priorityBuffer (how much above top percentile) - Rapid DeFi trades - Urgent NFT mint - Liquidation rescue TARGET_CPI Target a specific cost per inclusion: system attempts to stay below a user-defined maximum fee. - targetFee (max gwei for priority) - timeTolerance (how many blocks user can wait) - Casual token transfers - Routine on-chain tasks where speed is less critical MEV_ROI For MEV searchers seeking a minimum return-on-investment (ROI) on gas costs or priority fees. - roiThreshold (desired ratio of profit to gas cost) - timeTolerance - Arbitrage & sandwich attacks - Liquidation bots CENSORSHIP_RESIST Prefers block builders/relays known to be censorship-resistant, may pay additional premium. - preferredRelays[] (list of known neutral builders) - feePremium (extra tip if needed) - Transactions with strong censorship concerns - Tornado Cash or other blacklisted addresses MAX_VALUE For batching multiple transactions, tries to choose those with the best net payoff. - budget (overall gas budget) - timeHorizon (deadline for all txs) - Bulk NFT minting - DeFi strategies spanning multiple interactions Parameter Type Associated Strategy(ies) Description Example Value maxFeePerGas uint MAX_SPEED (fallback) Upper bound for total gas fee (base + priority). Even if the strategy suggests a higher tip, it cannot exceed this. 200 gwei priorityBuffer uint MAX_SPEED Additional tip to outbid top mempool percentile. 2 gwei targetFee uint TARGET_CPI Ideal maximum for total transaction fee. The wallet or aggregator tries not to exceed this. 30 gwei timeTolerance uint TARGET_CPI, MEV_ROI Number of blocks (or seconds) the user can tolerate waiting. If not included by then, fee might be recalculated. 60 blocks roiThreshold float MEV_ROI Target ratio: (Profit / GasCost) must exceed this to proceed. 3.0 (i.e., 300%) preferredRelays[] string CENSORSHIP_RESIST List of block builders or relays that do not censor. ["relayA", "relayB"] feePremium uint CENSORSHIP_RESIST Extra tip beyond normal to incentivize censorship-free builders. 5 gwei budget uint MAX_VALUE Total gas or ether budget for a set of bundled transactions. 0.2 ETH timeHorizon uint MAX_VALUE Deadline (in blocks or seconds) by which transactions in the bundle must be completed. 3600 seconds Example Scenarios Table how this might be used in different user scenarios Scenario Chosen Strategy Parameters Outcome User wants the fastest possible inclusion for a DeFi trade during an NFT mint rush. MAX_SPEED - maxFeePerGas: 300 gwei (fallback) - priorityBuffer: 5 gwei Wallet sets a top-percentile tip + buffer. The user’s tx likely gets into the next block but pays a premium. User only does routine transfers and wants to avoid overpaying, even if it takes a while. TARGET_CPI - targetFee: 20 gwei - timeTolerance: 50 blocks The wallet tries not to exceed 20 gwei priority. If mempool is busy, the user’s tx might wait until fees drop. An MEV searcher running an arbitrage bot wants 300% ROI on gas. MEV_ROI - roiThreshold: 3.0 (i.e., 300%) - timeTolerance: 5 blocks Bot logic checks if (Profit / GasCost) ≥ 3. If yes, it broadcasts with fees to ensure acceptance. If the ratio dips, it aborts. A user is concerned about censorship and is willing to pay a higher tip for a neutral builder. CENSORSHIP_RESIST - preferredRelays[]: [“relayA”] - feePremium: 10 gwei The wallet routes the transaction via relayA if it’s online, adding a 10-gwei premium so the builder is incentivized to include it. A DeFi power-user wants to send multiple transactions to maximize overall value within a fixed budget. MAX_VALUE - budget: 0.1 ETH - timeHorizon: 7200 seconds The wallet looks at possible queued transactions and prioritizes those with the highest net expected value. I have not yet created a formal proposal, I am soliciting feedback from everyone and anyone interested.