In this demo, I’ll give an overview of how Prop AMMs can be designed to work in Layer 2 blockchains, by enabling Top of Block price updates via a global storage smart contract & custom block building algorithm.
Unlike traditional AMMs, market makers on Prop AMMs update their price curves at the top of every block via custom builder logic. The AMM reads the latest values from the contract before executing any user transaction, preventing arbitrageurs and toxic flow from picking of stale quotes.
I’ll give an update on my work on adding a libp2p-based networking layer to op-rbuilder to enable Flashblock propagation across multiple builders and improve availability, if one builder goes down mid-block.
In this demo I run one building node and a new sync-only node; they discovered each other, Flashblocks are propagated, executed locally, and headers matched, confirming deterministic sync and supporting failover mid-block.