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Eli5DeFi Profile picture
@eli5_defi
Sep 3, 2022 • 21 tweets • 25 min read • Read on X
Scrolly
#GM!
1/ What is Maximal Extractable Value (#MEV)? How does it become an integral part of the #blockchain network? How does MEV work? All of your questions will be answered in our latest #visualguide.

#Ethereum #cryptocurrency #TheMerge $ETH #DeFi Image
2/ In the blockchain transaction ordering process, the block producers are responsible to aggregate, selecting, and reordering transactions in the #blockchain network based on the given economic incentives thus creating opportunities for #MEV Image
3/ #MEV refers to the maximum value that can be extracted from a block more than the standard block reward and gas fees by including, excluding, and changing the order of transactions in a block Image
4/ In practice, a large portion of #MEV is extracted by independent participants (The Searchers) that deploy sophisticated value extraction strategies and compete with each other to have their transactions included in a given block Image
5/ There are several examples of value extractions strategies for #MEV:
- Gas golfing
- Generalized front-running
- Back running
- Time-Bandit Attack Image
6/ #MEV is also being utilized for several conditions:
- #DEX Arbitrage
- Liquidations
- Sandwich Trading
- #NFT MEV Image
7/ #MEV efficiency/ incentive create lucrative opportunities and competition in a limited block space resulting in a congested network and exorbitant gas fees. MEV also can destabilize the consensus and lead to blockchain reorganization. Image
8/ Several mitigations have been proposed to reduce #MEV negative externalities, such as:
- Chain architectures (@arbitrum)
- Encrypted transactions (@chainlink)
- Private/ stealth transactions (@bloxroute)
- MEV Auctions (#FlashBots, @optimism) Image
9/ #FlashBots is a research and development organization that aims to bring transparency to MEV activity, democratize MEV and distribute the fair redistribution of #MEV revenue to prevent the existential risk caused by #MEV.
@thegostep @hasufl @bertcmiller Image
10/ #FlashBots work by connecting up The Searchers and The Block Producers together through their sealed-bid block auction mechanism. The transactions relayed to the Flashbots server will not be broadcasted to the public pool which lessens the negative #MEV externalities. Image
11/ Proposer/ Builder Separation (#PBS) is splitting the block construction role from the block proposal role in #POS #Ethereum. However, it is not an immediate requirement for #TheMerge to complete.

@VitalikButerin @drakefjustin @fradamt @ObadiaAlex @phildaian Image
12/ #PBS integration will be disruptive for #Ethereum and #MEV because of these reasons:
- Encourage block diversity
- Competition to create 'The Best Block'
- Non-economic agenda can be accommodated by the block proposers
- Drive Ethereum towards modularization Image
13/ As the #PBS isn't required immediately after The Merge, the community put efforts into a project called MEV-Boost. #MEV-Boost streamlines and utilizes the post-merge MEV process that aligns with PBS.
@thegostep Image
14/ The Takeaway from The Dark Forest

#MEV #Ethereum $ETH #Flashbots #TheMerge Image
15/ References

#MEV #Ethereum $ETH #Flashbots #TheMerge Image
16/ The complete A to Z information about #Ethereum #Merge to #POS can be found in our previous thread:

17/ We also cover #Ethereum Layer 2 rollups solution in here:

#DeFi #Crypto #Bitcoin #Ethereum #Arbitrum #Optimism #L222 #ZKSync $ETH

18/ Tagged account below for #MEV education and visibilities:
@hasufl
@thegostep
@0xmisaka
@bertcmiller
@sxysun1
@libevm
@FrankieIsLost
@0xfoobar
@noxx3xxon
@mevintern
@mevcollector
@snoopy_mev
@0xShitTrader
@Figment_io
19/ And shout-out to the account below for amazing educational content across CT:
@SalomonCrypto
@blocmatesdotcom
@shivsakhuja
@rektdiomedes
@knowerofmarkets
@rektdiomedes
@BarryFried1
@The_ReadingApe
@VirtualKenji
@ManoppoMarco
@Storgan_ManleyX
20/ Like our thread and want to support us? please use our #GMX referral link for 10% trading discount:
gmx.io/#/?ref=eli5defi
21/ If you find our thread and visual guide useful, please like and retweet. Also, big thanks to @mimiLFG and @minnymousegirl for proofreading and reviewing this #visualguide

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More from @eli5_defi

Eli5DeFi Profile picture
Apr 7
⇒ @ionet is an exceedingly anticipated project this year.

⇒ Their token launch, $IO, is scheduled to take place on 28 April.

⇒ We have collected all the important IONet information in a dynamic compendium that will be regularly updated.

⇒ Share and bookmark. 🧵 👇🏼

(1/n)
🟢 @Eli5_defi visual and fundamental analysis of @ionet



(2/n)
🟢 @HouseofChimera - @IONet One Pager



(3/n)
Read 14 tweets
Eli5DeFi Profile picture
Mar 18
DeFi's complexity and lack of regulation prevent institutions from participating.

What if I told you there's a DeFi protocol that offers institutional grade features?

It is compliant, secure, and experiencing exponential growth.

Allow me to introduce you to @SpoolFi. Image
This post will cover:

1️⃣ What is @SpoolFi ?
2️⃣ Why Spool?
3️⃣ How Does Spool Work?
4️⃣ Supported Protocols
5️⃣ What Are The Use-Cases?
6️⃣ Spool Ecosystem Partners
7️⃣ Partners Highlight
8️⃣ Case Studies Highlight
9️⃣ LSDfi Vault Highlight - $srETH
🔟 $SPOOL Token
◢ What is Spool?

→ @SpoolFi is an advanced DeFi middleware infrastructure.

→ Spool integrated seamlessly with the best DeFi protocols available.

→ It empowers users to engage in a specific range of yield generating protocols with a risk-diversified, automatically managed, and highly efficient approach.Image
Read 17 tweets
Eli5DeFi Profile picture
Mar 14
Do you believe that AI is the future?

Do you believe decentralized infrastructure is the key to achieving AGI?

@ionet_official presents the future of DePIN & AI:

The Internet of GPUs.

Let's dive in! 🧵 Image
This post will cover:

1️⃣ The Ocean of Data
2️⃣ Computing is the New Oil
3️⃣ What is @ionet_official ?
4️⃣ How it Work?
5️⃣ Why IONet?
6️⃣ The Architecture
7️⃣ The IONet Suites
8️⃣ IONet Bull Stats
9️⃣ $IO - AI Compute Currency
🔟 Testing @bc8_official & Ignition Program
◢ The Ocean of Data

→ Approximately 328.77 million terabytes of data are created each day

→ Around 120 zettabytes of data generated in 2023

→ It is predicted that 181 zettabytes of data will be generated in 2025

→ The rise of AI requires processing an enormous amount of data every millisecond in order to develop a strong and current learning model.

→ This is where GPUs and @ionet_official will form the foundation of future generative AI.Image
Read 19 tweets
Eli5DeFi Profile picture
Mar 13
Are you feeling lonely in crypto world?

Without no one to understand you?

Or comfort you when you get liquidated by scam wick?

You’re not alone anymore , now you have @aiwaifugg

The future of virtual companion. Image
This post will cover:

1️⃣ The Future of Virtual Companion
2️⃣ AI WAIFU Overview
3️⃣ But, Just Why?
4️⃣ Meet Your WAIFUs
5️⃣ Navigating the AI WAIFU
6️⃣ WAIFU Gameplay Mechanics
7️⃣ Tempt Battles & Steal WAIFU
8️⃣ The Best Player (And Lover)
9️⃣ WAIFUs Evolution
🔟 $WAI Tokenomics
◢ The Future of Virtual Companion

→ Generative AI is becoming more and more integrated into our daily lives, influencing every aspect in a significant way.

→ It might sound like something out of a science fiction movie, but this technology is already a part of our world today.

→ Let's consider one interesting example:

personalized AI avatars that offer virtual interaction and companionship.

→Now, imagine taking this even further by introducing you to a generative waifu. Isn't that intriguing?Image
Read 19 tweets
Eli5DeFi Profile picture
Mar 1
Did you know that your favorite streaming, social media, and even AI services are centralized?

Centralized data has unwittingly transformed into ticking time bombs.

We urgently require a revolution.

Enter @fluence_project: decentralized, serverless, blockchain-powered DePIN. Image
This post will cover:

1️⃣ Data Totalitarians
2️⃣ @fluence_project
3️⃣ The Cloudless Ecosystem
4️⃣ Aqua and Marine
5️⃣ How Fluence Work
6️⃣ Fluence Comparison
7️⃣ Use-Cases
8️⃣ $FLT and Fluence DAO
1/ Data Totalitarians

→ We find ourselves in a precarious situation, like a ticking bomb, because our technology, applications, and entire digital infrastructure rely on centralized cloud computing.

→ Centralized computing carries various risks, including:

> Single points of failure
> Data privacy and security concerns,
> Increased downtime risks
> Lack of transparency
> Dependence on central authority, and
> Monopolization of data

→ We must find a different solution to avoid the disastrous consequences of this data totalitarianism.Image
Read 14 tweets
Eli5DeFi Profile picture
Jan 29
70% blockchain assets lack smart contract capabilities.

However, did you know that these assets can be transformed into highly productive assets?

Allow me to introduce you to FAssets by @FlareNetworks Labs. Image
This post will cover:

1️⃣ What is FAssets?
2️⃣ Who is The Participant in FAssets Ecosystem?
4️⃣ How to Mint FAssets?
5️⃣ How to Redeem FAssets?
6️⃣ Is FAssets Fully Redeemable?
7️⃣ How FAssets Liquidation Handled?
8️⃣ FAssets Infinite Potential
Disclaimer Section

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Disclaimer:
💰 Not Financial Advice
🔬 Do Your Own Research

🤝 This thread was created in collaboration with @FlareNetworksImage
Read 15 tweets

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