Settlement Layer
The Settlement Layer validates solver executions and issues credits. It operates on Base as the canonical settlement chain.How Settlement Works
1
Solver Executes
Solver pays user on destination chain from their SolverPool
2
Watcher Validates
Watcher nodes verify the execution against intent requirements
3
Credit Issued
Solver receives USDC settlement credit on Base
Watcher Validation
Watcher nodes validate every execution before credits are issued: Validation Checks:- ✓ Output Token correct
- ✓ Amount ≥ Minimum
- ✓ Correct Recipient
- ✓ Not Expired
- ✓ Not Replayed
- ✓ No Fraud Detected
| Check | Description |
|---|---|
| Output Token | Correct token delivered to user |
| Amount | Output ≥ minimum specified in intent |
| Recipient | Correct user address received funds |
| Expiry | Execution completed before intent expired |
| Replay | Order ID not already executed |
| Fraud Detection | No malicious behavior indicators |
Settlement Flow
Why USDC on Base?
Predictable Economics
Solvers know exactly what they’ll receive—no price volatility between execution and settlement
Single Settlement Chain
All credits on one chain simplifies accounting and withdrawals
Low Fees
Base L2 efficiency means minimal settlement costs
Native USDC
Circle-native USDC, not wrapped tokens
Solver Incentives
| Behavior | Incentive |
|---|---|
| Execute quickly | Win more intents (first-come, first-served) |
| Maintain liquidity | More opportunities across chains |
| Optimize routing | Better margins on swaps |
| Stay honest | Credits only for valid executions |
Fraud Prevention
Multiple layers prevent malicious behavior:- No credits without proof — Execution must be verifiable on-chain
- Watcher consensus — Multiple independent nodes validate
- Slashing risk — Malicious solvers can be removed from the network
- Isolated pools — One bad solver cannot affect others
Settlement Timing
| Phase | Duration |
|---|---|
| Execution | ~5-15 seconds |
| Watcher validation | ~30-60 seconds |
| Credit issuance | Immediate after validation |
Solvers receive credits within minutes of execution, enabling high-velocity operations without capital lockup.
Next: Learn about the Gateway Contract — the core intent validation system.