Skip to content

Latest commit

 

History

History
50 lines (37 loc) · 2.2 KB

empeje.md

File metadata and controls

50 lines (37 loc) · 2.2 KB

mpj's notes

Interests

  • Learning more about how protocol should handle MEV

Notes

  • Although many DEXes market themselves as a decentralized exchange, they're mostly custodial at best. You can learn more about my notes here

Interesting Links

Research on MEV

Maximal Extractable Value (MEV)

This is a series of notes related to MEV from various resources from YouTube, Crypto Twitter, to blogs and various sources online. The goal is to do an in-dept research on the subject and build a Systematization of Knowledge (SoK) for MEV.

Guide

Is it an existential threat to Ethereum?

  • It is problem for both PoS and PoW.
  • Block proposer extractable value
  • Inefficient market -> Arbitrage
  • Frontrunning other people transactions
  • Backrunning
  • It is a challenge because UX -> User get less favorable price
  • Existencial challenge -> there's economic of scale
    • There's a benefit of centralization
  • Economic of scale
    • Have a lot of money - hire goo engineer
  • Ecosystem's best reply
    • Firewall the centralization
    • One party create bundles / bundles of transactions (Searchers)
    • Block proposer (miners/validators)
  • Economic design philosophy, sometimes you can't get rid of centralization
  • This is a problem an now being solved by the ecosystem.