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MEV Prevention: Miner Extractable Value (MEV) is a fundamental problem of blockchains, described in a number of studies including Flash Boys 2.0.
The power of node operators to decide over transaction order, and to censor transactions is a form of insider trading, where an intermediary party has knowledge about future events and can capitalize on this information, thus creating an unfair system.
MEV is a hard problem in decentralized systems, and current popular blockchains such as Ethereum were designed at a time when transaction order fairness was not taken into account.
On October 6th, 2022, Mangata X was targeted with a governance attack which resulted in attackers gaining voting rights on the on-chain Council for a brief time. The incident has since been resolved, and Mangata X is fully operational.
Opening 🧵 1/9
2/9 🧵 The type of attack was novel. Instead of a technical hack, the attackers used a hostile takeover of the council at 4:39 AM UTC to authorize transferring KSM from the parachain sovereign account on Kusama to another Kusama account.
3/9 🧵 At 18:29 PM UTC we regained control of the council and countered the actions taken by the attackers in full.
Not all DEXes are created equal. While currently there is a race about which DEX can offer the best liquidity mining programs, it is obvious that giving away free money won’t be a sustainable tactic in the long run.
A thread 🧵
2/5 🧵The true end game for DeFi and DEXes will be decided by another question: Which protocols will be the most capital efficient?
3/5 🧵 Capital Efficiency is the relationship between how much someone is spending to grow revenue and how much they are getting in return.
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