# The MEV Letter #2

**URL:** https://collective.flashbots.net/t/the-mev-letter-2/2061
**Category:** The Flashbots Ship
**Tags:** links, the-mev-letter
**Created:** [July 26, 2023, 10:05pm UTC](https://collective.flashbots.net/t/the-mev-letter-2/2061 "2023-07-26T22:05:42Z")
**Posts on this page:** 1
**Page:** 1

<div class="post-metadata">

### Author: ![Fred](https://collective.flashbots.net/user_avatar/collective.flashbots.net/fred/32/1288_2.png) [@Fred](https://collective.flashbots.net/u/Fred)
#### Post date: [July 26, 2023, 10:05pm UTC](https://collective.flashbots.net/t/the-mev-letter-2/2061/1 "2023-07-26T22:05:42Z")

</div>

_ **The MEV Letter** _ is a weekly collection of papers, articles and resources related to MEV. The intention of this letter is to provide a comprehensive summary of the latest research, discussions, and developments in the space, with links for further reading.

See our [Transparency Reports](https://collective.flashbots.net/tag/transparency-report) for deeper dives into updates related to Flashbots.

# Papers & Articles

- [Threshold Encrypted Mempools: Limitations and Considerations](https://arxiv.org/abs/2307.10878) by [Antoine Rondelet](https://twitter.com/itranneo/) and [Quintus Kilbourn](https://twitter.com/0xQuintus) is the result of [FRP-31](https://github.com/flashbots/mev-research/blob/main/FRPs/active/FRP-31.md) which investigates the market and incentive implications of using encrypted, specifically threshold encryption, as techniques to mitigate negative externalities of MEV extraction.
  - [Tweet-thread](https://twitter.com/itranneo/status/1682323309709410304?t=dGo3PUWuraDUKnAE6byVbA&s=19) by [Antoine Rondelet](https://twitter.com/itranneo/)
  - [Summary](https://collective.flashbots.net/t/frp-31-threshold-encrypted-mempools-limitations-and-considerations/2036) by [Antoine Rondelet](https://twitter.com/itranneo/)

- [Towards a Theory of MEV, Part II: Uncertainty](https://drive.google.com/file/d/1mLrlYTy6SLPVg4by-PJ9wqEuFZJOjhG4/preview) by [Tarun Chitra](https://twitter.com/tarunchitra) explores MEV reduction and suggests that neither so-called fair ordering techniques nor economic mechanisms can individually mitigate MEV for arbitrary payoff functions.
  - [Talk: Towards a Theory of MEV, Part II: Uncertainty](https://www.youtube.com/live/WYH7n4M016A?feature=share&t=14626) at [PBS.day](https://pbs.day) by [Tarun Chitra](https://twitter.com/tarunchitra) ([slides](https://drive.google.com/file/d/1qchMA46P2EPZU5IOBzJDrjx35fiilbPD/view?usp=drive_link))

- [UniswapX](https://uniswap.org/whitepaper-uniswapx.pdf) by [Hayden Adams](https://twitter.com/haydenzadams), [Noah Zinsmeister](https://twitter.com/NoahZinsmeister), [Mark Toda](https://twitter.com/MarkToda), [Emily Williams](https://twitter.com/crypt0glitter), [Xin Wan](https://twitter.com/xin__wan), [Matteo Leibowitz](https://twitter.com/teo_leibowitz), [Will Pote](https://twitter.com/willpote), [Allen Lin](https://www.linkedin.com/in/allen-lin-cfa), [Eric Zhong](https://twitter.com/_ericzhong), [Zhiyuan Yang](https://github.com/ConjunctiveNormalForm), [Riley Campbell](https://www.linkedin.com/in/rileydcampbell), [Alex Karys](https://twitter.com/ack_129) and [Dan Robinson](https://twitter.com/ack_129) introduce UniswapX; a new auction-based protocol for trading across AMMs & other liquidity sources. The protocol aggregates both onchain and offchain liquidity, internalizes MEV, offers gas-free swaps, and can be extended to support cross-chain trading.
  - [Tweet-thread](https://twitter.com/Uniswap/status/1680955621343129600) by [Uniswap Labs](https://twitter.com/Uniswap)
  - [Tweet-thread](https://twitter.com/danrobinson/status/1681061703818305536?t=4YHqrjJHz6uDy6jljX306Q&s=19)by [Dan Robinson](https://twitter.com/danrobinson)
  - [Tweet-thread](https://twitter.com/willpote/status/1674185783157071873) by [Will Pote](https://twitter.com/willpote)
  - [uniswapx-artemis](https://twitter.com/MarkToda/status/1682706899182006273) by [Mark Toda](https://twitter.com/MarkToda) is a Rust implementation of an atomic UniswapX filler strategy built on the Artemis MEV framework.

- [Latency in Blockchains and Ethereum L2 Migration](https://davidecrapis.notion.site/Latency-in-Blockchains-and-Ethereum-L2-Migration-a94f04388bee46ac812910805d31256c) by [Davide Crapis](https://twitter.com/DavideCrapis) discusses the challenges of high latency on Ethereum L1 for DeFi applications and how migration to L2s could offer higher market efficiency and reduce the potential for market manipulation.
- [The Espresso Sequencer: HotShot Consensus and Tiramisu Data Availability](https://github.com/EspressoSystems/HotShot/blob/main/docs/espresso-sequencer-paper.pdf) by [Espresso Systems](https://twitter.com/EspressoSys) introduces HotShot, a proof-of-stake consensus protocol based on the HotStuff protocol and optimized for running an ordering consensus between a large number of parties.
  - [Tweet-thread](https://twitter.com/EspressoSys/status/1682425419939692544?t=zucBDmXxfL6ZIJZC093ntQ&s=19) by [Espresso Systems](https://twitter.com/EspressoSys)
  - [Talk: Dumb blockchains require smart solutions (shared sequencing in the modular stack)](https://www.youtube.com/watch?v=nNGVz-FRjKY&t=16269s) at [Modular Summit](https://modularsummit.dev/) by [Ben Fisch](https://twitter.com/benafisch)
  - [Releasing the Espresso Sequencer Testnet II: Doppio](https://medium.com/@espressosys/releasing-the-espresso-sequencer-testnet-ii-doppio-bcc46c315c30)
    - [Tweet-thread](https://twitter.com/EspressoSys/status/1681927238135222273?t=72fwLMHFdYCLSVvmrW8vWg&s=19) by [Espresso Systems](https://twitter.com/EspressoSys)

- [Introducing Essential: We Are Intents](https://blog.essential.builders/introducing-essential/) by [Liesl Eichholz](https://twitter.com/liesleichholz/) introduces Essential as an organization “building intent-based infrastructure & tooling to accelerate the transition from value extraction to intent satisfaction”.
  - [Tweet-thread](https://twitter.com/intentessential/status/1682060623776202752) by [Essential](https://twitter.com/intentessential)
  - [Tweet-thread](https://twitter.com/intentessential/status/1682416734186381312) by [Essential](https://twitter.com/intentessential) on intents

- [Upgradeability of Ethereum L2s](https://l2beat.com/multisig-report) by [L2BEAT](https://twitter.com/l2beat) dives into the various upgrade mechanisms of eight different Ethereum Layer 2s. The report focuses on the technical and organizational aspects of upgrading these L2s and provides recommendations for system architecture and safety measures.
  - [Tweet-thread](https://twitter.com/l2beat/status/1682344986652680195?t=XElrii4M6IaQCSGOaZnmug&s=19) by [L2BEAT](https://twitter.com/l2beat)

- [MEV Matters: Decoding Chorus One’s winning MEV strategy](https://chorus.one/articles/mev-matters-decoding-chorus-ones-winning-mev-strategy) by [Chorus One](https://twitter.com/ChorusOne) presents their strategy related to maximizing MEV extraction through relay selection, latency games, and infrastructure optimization.

# Talks & Discussions

- Last week of [EthCC[6]](https://www.ethcc.io/) was packed with events related to MEV and PBS. To connect the dots and bring it all together, Flashbots together with Celestia and Maven 11 hosted [PBS.day](https://pbs.day) on July 22. The day gathered leading researchers to navigate the PBS design space, from the elegant PEPC proposal to the latest version of the enshrined PBS design, PTC.
  - **Recordings and resources from [pbs.day](https://pbs.day) can be found in the [forum thread](https://collective.flashbots.net/t/mev-week-paris-from-zero-sum-to-positive-sum/1963).**
  - See [**MEV-Week Paris**](https://www.notion.so/flashbots/MEV-Week-Paris-6522b2aa9c2f4acabbc648c9965f0751) for a comprehensive overview of all MEV-related content. Recordings and slides will be added continuously over the next couple of weeks as these are being uploaded.

- Flashbots also hosted a [series of salons](https://collective.flashbots.net/t/mev-week-paris-from-zero-sum-to-positive-sum/1963) at our Pi-rate ship last week, diving deep into various topics. Keep an eye on [the forum](https://collective.flashbots.net/) for more updates in the coming days.
  - [SajZ](https://twitter.com/sajidazouarhi/) [published](https://twitter.com/sajidazouarhi/status/1684262954638639122?t=Hmk8-zChUclqV2WCO3ArFQ&s=19) a summary with their takeaways from [orderflow.salon](https://orderflow.salon).

- [Flirting with Models: Grug - Grug (Finally) Teaches Us MEV (S6E12)](https://www.youtube.com/watch?v=WRhF5-4CgEo) with [Grug](https://twitter.com/CapitalGrug) discuss MEV strategies with examples and risks associated with them.
- [Epicenter Podcast: Vitalik Buterin: Ethereum - MEV, Staking Derivatives and Privacy](https://www.youtube.com/watch?v=sx2t86UWqPw) invited [Vitalik](https://twitter.com/VitalikButerin) to discuss MEV, staking derivatives, privacy, decentralization, and future interoperability.
- [Scraping Bits](https://rss.com/podcasts/scrapingbits/) by [DeGatchi](https://twitter.com/DeGatchi) invites world-class hackers, developers, and cybersecurity specialists for technical deep dives into the chaotic world of the EVM. The four most recent episodes invites searchers to explore the dark forest of MEV.
  - [E03 - DeFi Food Revolution: From Yam Finance to Foundry and Pyrometer - A Journey of Innovation and Growth - With Brock Elmore And DeGatchi:](https://rss.com/podcasts/scrapingbits/1036570/)
  - [E04 - Unlocking DeFi’s Untapped Potential: From Statistical Arbitrage MEV to Crafting Permissionless Options on Ethereum - With 0xAlcibiades And DeGatchi](https://rss.com/podcasts/scrapingbits/1038189/)
  - [E05 - From Code to Cash: Building MEV Bots and Doubling Money in 1 Minute - With Raph And DeGatchi](https://rss.com/podcasts/scrapingbits/1038501/)
  - [E06 - An Encrypted Arena Emerges: Anonymous Transactions and MEV on Aztec’s ZKVM - With Maddiaa And DeGatchi](https://rss.com/podcasts/scrapingbits/1038439/)

- [MEV (not only) for lawyers](https://www.youtube.com/watch?v=pEVWJyztApA) by [Mikołaj Barczentewicz](https://twitter.com/0xMikolaj) is an introduction to MEV that looks at where MEV appears, how it’s extracted, and some of the mechanisms available to mitigate the negative externalities.
  - [Mevlaw.xyz](https://mevlaw.xyz/) by [Mikołaj Barczentewicz](https://twitter.com/0xMikolaj) is collating law and policy analysis related to MEV.

# Posts & threads

- [Quintus](https://twitter.com/0xQuintus) has published a series of topics on the forum opening up discussion for various research areas related to PBS, SUAVE, shared sequencing, TEE/SGXs, and more.
  - [PBS (and alternatives) wiki](https://collective.flashbots.net/t/pbs-and-alternatives-wiki/2034)
  - [SUAVE wiki](https://collective.flashbots.net/t/suave-wiki/2018)
  - [TEE/SGX wiki](https://collective.flashbots.net/t/tee-sgx-wiki/2019)
  - [Censorship Resistance In PBS (Heterogeneity, BFT)](https://collective.flashbots.net/t/censorship-resistance-in-pbs-heterogeneity-bft/2029)
  - [Private Bidding In PBS (Cryptography)](https://collective.flashbots.net/t/private-bidding-in-pbs-cryptography/2031)
  - [Economic Censorship Resistance in PBS](https://collective.flashbots.net/t/economic-censorship-resistance-in-pbs/2030)
  - [Pre-Execution Privacy In PBS](https://collective.flashbots.net/t/pre-execution-privacy-in-pbs/2035)
  - [Proposer Incentive Compatibility of Private Bidding in PBS](https://collective.flashbots.net/t/proposer-incentive-compatibility-of-private-bidding-in-pbs/2032)
  - [Latency Races In PBS](https://collective.flashbots.net/t/latency-races-in-pbs/2047/1)
  - [The Absence of Proposer Myopia](https://collective.flashbots.net/t/the-absence-of-proposer-myopia/2033)
  - [Understanding Building In A Continuous Time Setting](https://collective.flashbots.net/t/understanding-building-in-a-continuous-time-setting/2048)
  - [Revenue allocation in shared sequencing](https://collective.flashbots.net/t/revenue-allocation-in-shared-sequencing/2051)

- [Evan Van Ness](https://twitter.com/evan_van_ness) published a [summary](https://twitter.com/evan_van_ness/status/1681777140637880320?t=_-5Yju5z_CD8PfqcNYWkKg&s=19) of the July 2023 [r/ethereum Research AMA](https://old.reddit.com/r/ethereum/comments/14vpyb3/ama_we_are_ef_research_pt_10_12_july_2023/) with comments from EF researchers on Deneb, RANDAO, DVT, SSLE, MEV and more.
- [Toni Wahrstätter](https://twitter.com/nero_eth) [introduced](https://twitter.com/nero_eth/status/1683712396777463808?t=_DBbmxVjaF1--0CYd3jKfA&s=19) a new diagram on builder efficiency on [mevboost.pics](https://t.co/5djxqbhjmU), comparing the average number of bids with the total number of blocks that make it on-chain.

# Other

- [Open sourcing the Flashbots MEV-Share Node](https://writings.flashbots.net/open-sourcing-flashbots-mev-share-node) by [Flashbots](https://www.flashbots.net/) announce that the [MEV-Share Node](https://github.com/flashbots/mev-share-node) implementation is now open source. MEV-Share Node is a service that implements the MEV-Share protocol and merges user transactions with searcher bundles.
  - [Tweet-thread](https://twitter.com/SheaKetsdever/status/1683477917949411330) by [Shea Ketsdever](https://twitter.com/SheaKetsdever)
  - [Protocol specification](https://github.com/flashbots/mev-share)
  - [Client library](https://github.com/flashbots/mev-share-client-ts)
  - [Example](https://github.com/flashbots/simple-blind-arbitrage)[bots](https://github.com/flashbots/simple-limit-order-bot)

- [Announcing Winners from the EthGlobal Paris Hackathon 2023](https://collective.flashbots.net/t/announcing-winners-from-the-ethglobal-paris-hackathon-2023/2066) by [Reid Yager](https://twitter.com/0xYager) announces the three winners of the [ETHGlobal Flashbots track](https://ethglobal.com/events/paris2023/prizes#flashbots). If you’re a searcher looking for you next challenge, stay tuned for more information on an [upcoming event](http://ctf.flashbots.net)!
- [AugmentHack update](https://hackmd.io/@sxysun/hackideas) by [sxysun](https://twitter.com/sxysun1/) includes takeaways and results of the hackathon that was organized together with [augmenthack.xyz](https://www.augmenthack.xyz/) with a $15K research grant as prize.
  - [Tweet-thread](https://twitter.com/DeEnabler/status/1683240364532957184?s=20) of the winning project by [DeEnabler](https://twitter.com/DeEnabler)
  - [Announcement thread](https://twitter.com/sxysun1/status/1680827181600215040) by [sxysun](https://twitter.com/sxysun1/)
  - [Announcement thread](https://twitter.com/0x_emperor/status/1681019516023894016?s=20) by [Emperor](https://twitter.com/0x_emperor/)

- [nvTrust: NVIDIA Confidential Computing Ancillary Software](https://github.com/NVIDIA/nvtrust) by [NVIDIA](https://www.nvidia.com) is a repository that contains much of the utilities & tools, open-source code, and SDKs leveraged when using NVIDIA solutions in trusted environments, such as Confidential Computing.
- [Andrew Miller](https://twitter.com/socrates1024) and [Alex Obadia](https://twitter.com/ObadiaAlex) will participate in [Crypto Lounge Experience](https://twitter.com/CryptoLoungeExp) on July 29th in Barcelona to host two sessions on “Understanding Privacy Technologies through the lens of MEV”.

![:email:](https://collective.flashbots.net/uploads/default/original/2X/c/ce38e7c0cc547e6cb0de6ee73cfe916c1f7cb7b6.png ":email:") [**Sign up here**](https://forms.gle/Qr6MEUkVa13TDipW6) if you’d like to get The MEV Letter straight to your inbox!

[Previous editions of The MEV Letter](https://collective.flashbots.net/search?q=the%20mev%20letter)  
 ![px](https://collective.flashbots.net/uploads/default/original/2X/c/ca60e38032b234ad59a56965fe98b2abf584da78.png)