Decentralized order flow distributer (DOFD)

I am excited that the idea of a DOFD got so much love and participation.

I put in a bit more thoughts on what exactly an MVP could look like. The write-up can be found here. I primarily focused on low complexity and easy-to-code MVP.

Generally, I think if the following points come along in 2023, then the MEV landscape would already significantly improved:

  • DOFD MVP for fair MEV competition between builders
  • non-reversion guarantees for users’ transactions → This reduces the MEV and sandwiching surface, as users can choose tighter slippage
  • MEV capturing AMMs (works nicely with the DOFD concept) would remove the Loss versus rebalancing-MEV
  • And protocols with delegated trade execution - like cowswap and 1inch fusion - reduce the sandwiching risks for highly volatile assets

All these points would reduce the MEV that is captured by extractors already significantly and make ethereum a better place for trading/Defi. The DOFD could then be built out to a better system - the full SUAVE over the coming years.

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