mev - wtf?
Phil Daian | (cornell tech, flashbots)
mev
The Hydra�“Flaws of Decentralization on 0x and Etherdelta”
Ordering (OO) Fees
The Hydra : Into the Rabbithole
“Flaws of Decentralization”
Issue: exposure to arbitrage, miner frontrunning, exchange abuse
Found $1M/y profit running our own bot. Pre-PGA MEV bot!
Ordering Fees: One Puzzle Piece
Flash Boys 2.0 (a warning)
“MEV”, “PGA”s - beyond ordering
fair ordering: Themis and more (Kelkar et al)
Flash Boys 2.0
mev
Enter MEV
OO fees represent one case of a more general quantifiable value we call miner-extractable value (MEV).
MEV refers to the total amount of Ether miners can extract from manipulation of transactions within a given timeframe, which may include multiple blocks’ worth of transactions.
Fair Ordering: A Response
Clockwork Finance: A New Definition
MEV: the amount a miner can increase their balance across a series of blocks
Flashbots
mev: wat do?
… and many other projects
mev wat do?
MEV is fundamental
wat do?
DAPP DEVELOPERS: Limit MEV to what is strictly required/inherent. Think carefully about MEV.
USERS: Demand the above. Don’t use dapps with predatory MEV. Understand what MEV means to you.
L1/L2: Redesign with MEV in mind. Think about the use cases you are designing for, and how best to manage MEV. ��VALIDATORS: Extract, extract, extract, and don’t be ashamed. Your continued extraction is required to the game-theoretic security of any network on which MEV exists.��Everyone else: mitigate 👏 negative 👏 externalities.
… the birth of the magic bot
> illuminate the dark forest�
> democratize MEV extraction��> distribute MEV benefits
why are you here? the present
mev.day!!
Cross-Chain MEV: a Formalization
mev.day
Cross-Chain MEV
Still dark: the centralized world
MEV on FTX?????
Binance?
$95B >> $1.3B
wat do next? the future
wat do next?
We are on the precipice of centralizing all crypto.
There is now a choice.
wat do next?
attain understanding
preserve decentralization
wat do next?
make money
own the centralized stack
wat do next?
attain understanding
preserve decentralization
make money
own the centralized stack
Is the MEV meme good or bad…��for the world?
Is MEV research good or bad…��for the world?
Is MEV research good or bad…��for the world?
it’s up
to you
That’s great but wat do?�(and a teaser)
What is a better MEV auction?
user
validator
minimize
maximize
…. join us
github.com/flashbots
(PS Github sucks we’re working on it)