Thread by @0x_jem

1/9 I recently dove into MEV for the first time while researching on-chain market maker businesses. I found it to be an interesting concept and wanted to share a story from a market-maker perspective.

2/9 When I learned about MEV, I attempted to design a market-making business logic that leverages it. By aggregator DEX and the RFQ, as well as purchasing MEV services, market makers could potentially increase their profits.

Interesting, @Rook made it before I knew Rook.

3/9 Market making is a highly technical and automated business, with the biggest challenge being the implementation of a fully automated system.

4/9 I find the solution provided by RookFi @Rook to be quite interesting. Market makers sign and approve funds to be held in RookFi's contract, thereby solving the delay in calling the contract layer. The high-frequency maintenance of MEV can then be maintained by the Keeper.

5/9 The size of the MEV arbitrage market is actually not very large. Teams that find a few MEV trading opportunities a day, up to $20,000, are considered top engineering teams, with a large portion going to validators. So it's reasonable for RookFi to increase cross-arbitrage.

6/9 On the surface, Rookfi appears to be an MEV business, but the core is the high-frequency, automated engineering maintained by the Keeper. Once the Keeper supply-end is solid, the whole project will also have a turning point.

7/9 I admire the launch of $ROOK. It takes a bold approach to the current trend(demand/consumer-driven narrative), launching infra product with a token.
However, this is also a trend in the history of crypto, Token first and then apps.

$ROOK may be the next $GRT.

8/ Impressed by @theo_diamandis' research on DEX arbitrage in Optimal Theory (my research field). Converted the problem to a convex optimization. MEV expert @noxx3xxon added some insight.

However, the current framework doesn't support MEV arbitrage businesses. #MEV #DEXArbitrage

9/ MEV sandwich & arbitrage heavily rely on engineering. Kudos to @theo_diamandis' beautiful framework. But current framework makes it difficult to convert constraints to loss functions like gas indicator solns. @EigenPhi provides insightful data & charts on it. #DeFi #MEV

Tagging a few people who may be interested in this

@sui414
@ted_secure3
@kvny2046
@Bowenddex
@0x81B
@dennis_qian

fix --> gas indicator solution as the right picture by @theo_diamandis idea.