State of MEV Report - Request for Comments

The Flashbots Ship
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gm everyone,

I’m beginning to write a report on the current status of MEV for educational purposes. This report is intended to be released sometime during week 3 or 4 of April and shared among various Ethereum communities in Latin America.

I’m here to gather feedback on the potential outline and topics that could be included in this report. The idea is to cover different concepts, ideas, EIPs at a high level overview.

Outline Draft v1:

  • Fundamentals to understand MEV

    • How a transaction works
    • Why Ethereum is a Dark Forest?
    • Why Censorship Resistance is Important?

  • Introduction to Maximum Extractable Value - MEV

    • An Overview of MEV-Boost

      • Searchers
      • Builders
      • Relays
      • Validators

    • MEV Techniques 101

      1. Arbitrage

      2. Liquidation

      3. Sandwiching

        1. frontrunning
        2. backrunning

    • Other MEV Techniques

      1. Poisoned Sandwiching
      2. Just-in-Time (JIT) liquidity attacks

  • How MEV Can Be Mitigated?

    • App Level Solutions

      1. Single Unifying Auction for Value Expression - SUAVE
      2. CowSwap
      3. OVAL
      4. MEV Protect
      5. MEV Blocker
      6. Project Shutter

    • Protocol Level Solutions

      1. Enshrined Proposal Builder Separation - ePBS

      2. Alternatives to ePBS

        1. Protocol-Enforced Proposer Commitments - PEPC
        2. Protocol-Owned Building - PoB

      3. Inclusion Lists

        1. High-level overview
        2. Conditional vs Unconditional Inclusion Lists

      4. Encrypted Mempools

  • Closing Thoughts

    • The Scourge Roadmap Explained
    • How to get involved
    • Conclusion

Some topics that I’m not sure if I should add it:

  1. Single Slot Finality - SSF
  2. Single Secret Leader Election - SSLE
  3. Timing Games topics

Thank you in advance for your feedback, it will be highly appreciated.

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Hello!

On May 1st we released this report to the latam community. We created a 50 page report about most of the topics previously mentioned and 2 weeks ago we hosted a community call with 21 latam communities, most of them Ethereum regional communities. Also we created a NFT to commemorate our first community call about MEV. :partying_face:

Also, at Kairos Research we have accomplished 200 subscribers in our newsletter and every 2 weeks we add some developments in the fields of PBS and MEV.

Right now we are preparing the next report about new stuffs that we found in the first report.

For this one want to focus in 2 areas, MEV across Rollups, PBS designs.

I would like to receive feedback in this second report, Outline Draft:

Part 1: The MEV is Evolving

  • Order-Flow Auctions: What are they?
    • Atomicity in a MEV world
    • What are Order-Flow Auctions?
    • Different Forms of Orderflow Auctions
      • DEX Application Layer
      • RPC Layer
      • Block Building Layer
    • The Web3 CAKE
  • New forms of MEV
    • Two-Way Cross Chain Arbitrage
    • N-Way Multi Chain Arbitrage
    • Parallel Chain MEV
    • The MEV we don’t know
  • Does Exists MEV in L2s Rollups?
    • L2 MEV Flow Mechanism
    • L2 MEV Current Landscape
      • MEV around Centralized Sequencers
      • MEV around Decentralized Sequencers
      • MEV around Shared Sequencers
      • MEV around External Chains
        • Intents
        • SUAVE Applications

Part 2: Proposers and Builders Games

  • Timing Games in the Proof of Stake Era
    • Time is Money
    • Short and Long Term Scenarios
  • How to Achieve Validator Neutrality?
    • To Be or not to be a Proposer
    • Different Model to Separate Proposers and Builders
      • Payload Timeless Committee (PTC)
      • Block Auction ePBS
      • Slot Auction ePBS
      • Slot-auction+32 ePBS
      • Attester Proposers Separation Burn
      • PEPC is moving

We are unsure if we should cover the next topics in the Part 2:

  • An Intersubjective Approach for Other Proposals
    • Blob Fee Market and PBS
    • Smoothing Pools
    • Restaking Flashbots: MEV-Boost+/++

Thank you in advance for your feedback, it will be highly appreciated. :raised_hands:

2 Likes
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Hi @Ariiellus ! Iʻm the market research lead here at Flashbots. I google translated your report and would like to chat about your upcoming L2 MEV research. Do you want to dm me on telegram - tesa_fc2?

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The report is very useful, do you have plan to release an English verison

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@tesa just translated it. I think is improving it and she will release a report in incoming weeks/months

btw, I couldn’t contact you @tesa

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@Ariiellus how can I access an english version of this report

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Hey @Ariiellus whatʻs your tg? or you can email me at tesa@flashbots.net.

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ariiellus, same handle. I’ll send you a dm and an email (: