Thread by @AutomataNetwork

The topic of the moment: We've compiled a public wiki on #MEV to talk about the differing approaches projects (including us) are taking as they venture into the proverbial dark forest @danrobinson @samczsun @paradigm.

docs.ata.network/mev/introducti…

Bookmark this thread 1/11

Over $370m has been extracted by miners since 2020. Attacks have only become more sophisticated with time - besides the famed #front-running incidents, back-running attacks, time-bandit attacks and liquidations are all par for the course.

2/11

That’s not to say one can’t play bots at their game. Salmonella intentionally exploits the generalised nature of front-running setups, while over at @kattanatrade a front-runner paid 68 ETH to the miner and ended up with tokens he couldn't sell.

3/11

Approaches can be divided into two categories - front running as a service/MEVA (offense) , or MEV minimization/prevention (defense). At Automata, our universal anti-front running solution, #Conveyor is part of the defense camp.

4/11

With #MEVA or #FaaS, #MEV is extracted in many ways, such as miners auctioning off the right to txs. @optimismPBC’s proposal has Block producers determine transaction inclusion and Sequencers determine transaction ordering. The MEVA approach is favored by @VitalikButerin

5/11

#Flashbots MEV-Relay directly connects miners to bots to reduce bidding wars @thegostep @phildaian @tzhen @epheph @ObadiaAlex @fiiiu_ @jparyani @tkstanczak @bertcmiller @EdgarArout @taarushv @LukeYoungblood @RyRy79261 @akash_khosla @onewayfunction @suryabakshi @kafka2046

6/11

Today, some miners are already auctioning off mempool access for higher rates, such as @1inchNetwork 's Stealth transactions or solutions from @bloXrouteLabs. @archerdao and @Keeper_DAO use game theory to extract #MEV.

7/11

The other camp is working on minimizing or preventing #MEV. At #Automata we ingest and output transactions in a determined order. This creates a front-running-free zone that removes the chaos of transaction reordering.
medium.com/atanetwork/wha…

8/11

Other defensive approaches includes @chainlink's Fair Sequencing Service, @OffchainLabs uses @arbitrum to minimize L2 MEV capabilities; @vegaprotocol adds a blockchain module to sequence competing txns with relative fairness.

9/11

@StarkWareLtd’s Veedo employs a time-lock to seal info for a predetermined period of time during sequencing. @sunnya97 @SikkaTech uses Threshold Decryption to create mempool level privacy with encrypted txs. The LibSubmarine team temporarily hides transactions on-chain.

10/11

Putting together this wiki was a lot of fun, and it was a trip to read about the various takes. To name a few: @danrobinson @SiegeRhino2 @samczsun @fifikobayashi @NathanWorsley_ @karl_dot_tech @ObadiaAlex @_charlienoyes @gakonst

Updates? Opinions? Tag us.

/Fin