Deebs DeFi 🛰 Profile picture
Oct 6, 2022 15 tweets 10 min read Read on X
What the heck is MEV & why are Osmosis & Skip trying to capture it?

🧵👇🏻 (1/13) #OSMO Image
2. What is MEV?

•Maximal Extractable Value (MEV): the max value (not including block reward or gas fees) that can be obtained by changing the order of transactions in a block
3. But how can you change the order of transactions?

•The order in which transactions(TX) are processed in a new block depends on Gas Fees

•TXs with Higher gas fee=Higher Priority

•Thus, to change TX order, you can submit a TX with a higher gas fee & give yours priority Image
4. Why would someone do this?

•Simple Answer: Money

•Unfortunately, since profits can be made by reordering TXs, sometimes independent actors (Searchers) take advantage of every day users to make a profit. Lets look at an example 👇🏻
5. Sandwich Trading

•Imagine a Searcher runs a algorithm to find a unprocessed Large TX to buy OSMO

•Knowing this large order will raise price of OSMO, this person utilizes bots that auto submit a TX with a higher gas fee to buy OSMO right before the large TX & sell after Image
6. What are the effects of Sandwich Trading?

•The original user who submitted the large TX first gets a lot less OSMO than expected (Slippage)

•Sandwich Trading and Front running can cause higher gas prices for everyone and network congestion
7. However, there are good sources of MEV

•Liquidation: Buy collateral at a discount from unhealthy borrow positions. This ensures Lenders are paid back

•Arbitrage: Buy a token at low price on one DEX, sell high on another. This ensures Stable Prices

•more on arbitrage 👇🏻 Image
8. Enter @SkipProtocol Arbitrage

•Creating an on chain module that captures Arbitrage Opportunities on Osmosis

•Directs profits back to the community instead of leaving it concentrated in hands of a few Searchers

•Example of an arbitrage that turned 25 OSMO into 8k OSMO 👇🏻 Image
9. MEV Searchers have demonstrated that a massive market exists for Arbitrage

•Estimated $6.7M in historical revenue from arbitraging Osmosis Pools

•With Skip, current profit projections of 50-150k per month Image
10. How could these profits benefit Osmosis?

•Stakers & Validators: increase rewards to increase adoption

•Paying IBC relayer fees

•Osmosis DAO: used to fund future projects

•TX fee and Gas Refunds: reduce fees to bring Osmosis closer to a goal of a 0 fee DEX
11. Other Key Benefits

•Community will vote on how revenue is distributed

•Open Source Code: actions can be verified, no trust required

•Future Possibility of Skip to facilitate a Blockspace Auction for MEV not captured by the protocol
12. For full details go check out the proposal

gov.osmosis.zone/discussion/707…
13. If you are looking for educational content like this for Osmosis and all of Cosmos, make sure to join the Orbital Command Discord :)

discord.gg/NHBYVx5Q
Think about MEV capture on other chains outside of Osmosis. Yes, I mean Terra, Kujira, Juno, Sei. Check out 🧵 👆🏻

@SkipProtocol
@Flowslikeosmo
@churchkey
@danku_r
@wagmigently
@technologypoet
@simonch00
@cryptrus
@FarmerTuHao
@Casa_Intern
@CryptoChem0000
@KujiPeruggi

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Jul 25
The 2020 chip shortage made millionaires.

The 2025 shortage will make more.

If you want to win in the markets, you need to read this. 🧵 Image
2/ The 2020-2023 chip shortage occurred for a variety of reasons:

- COVID disrupting manufacturing.
- China US trade wars.
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Simply put: Demand outpaced supply.

But that was Covid times? Surely this couldn't happen again? Wrong. Image
3/ It can and it will.

But not the shortage you're used to. Not a lack of resources or manufacturing.

No, a shortage driven entirely by demand and one that puts strain on small businesses and consumers.

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You hear this. You farm for months, spend hundreds in fees, and get 0 in return.

Tired of this result? Learn how to find the next big airdrop yourself.

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Step 1: Go back to the first post and smash the like button to help this guide get better visibility.

You rock. <3

Now, move on to the real step 1. 👇
Step 1: Find the Airdrop.

NOPE, we're not using Dapp Radar or Airdrops IO. Websites like this are late on airdrops.

Dig in the data yourself on @DefiLlama and look for token-less projects with the characteristics below.

Full video guide in Step 9. 📽️ Image
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This could be the most overlooked airdrop on Base.

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Fear not. I will teach you how. 🧵 Image
Why @IntentX_ is under farmed and possibly a high value airdrop. 📽️

Just want the steps? Skip to the next post. 👇
Step 1: Registering your wallet.

For this step you're going to need:
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Need help? I walk you through it all in the video.
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Step 1: Setting up your GPU.
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(Skip to Step 5 if you have problems connecting)
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Sound too good to be true?

I did the math for you and show you the best way to maximize your $IO airdrop. 🧵 Image
@Filecoin @GaiminIo 1/ The question on everyone's minds: Is this overfarmed?

Absolutely not.

Here's why: to earn an airdrop, you must KYC with Galxe passport.

Consider how significant this is:

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And there's more. 👇 Image
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Why?

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No, you are going to approach this a different way. Image
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