# The MEV Letter #45

**URL:** https://collective.flashbots.net/t/the-mev-letter-45/3627
**Category:** The Flashbots Ship
**Tags:** links, the-mev-letter
**Created:** [July 2, 2024, 8:21pm UTC](https://collective.flashbots.net/t/the-mev-letter-45/3627 "2024-07-02T20:21:11Z")
**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 2, 2024, 8:21pm UTC](https://collective.flashbots.net/t/the-mev-letter-45/3627/1 "2024-07-02T20:21:11Z")

</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.

* * *

# Papers & Articles

- [Pricing Execution Rights when Rewards are Mean Reverting](https://collective.flashbots.net/t/pricing-execution-rights-when-rewards-are-mean-reverting/3618) by @Christoph argues that block rewards are mean reverting and derive the fair value of future proposal rights and of execution tickets assuming mean reversion.
- [It’s time to talk about L2 MEV](https://collective.flashbots.net/t/it-s-time-to-talk-about-l2-mev/3593) by @sui414 examines the state of L2s after the Dencun upgrade, focusing on activity, transaction fees, and MEV.
  - [Thread](https://x.com/sui414/status/1806056504128393466) by @sui414

- [Adjusting the bidding strategy in the Flashbots block builder](https://collective.flashbots.net/t/adjusting-the-bidding-strategy-in-the-flashbots-block-builder/3595/1) by @shea presents a new bidding strategy in the Flashbots builder that dynamically adjusts the bid in response to other bids in the MEV-Boost auction.
- [Disclosure: Underflow bug in Mev-Boost relay](https://collective.flashbots.net/t/disclosure-underflow-bug-in-mev-boost-relay/3599/) by @shea details an incident on June 10 where an underflow bug caused the [ultra sound relay](https://relay.ultrasound.money/) to accept an impossibly high bid.
- [Illuminating the blob market](https://collective.flashbots.net/t/illuminating-the-blob-market/3592) by @shea discusses the unexpected inclusion order of blobs during surging activity on L2s, emphasizing the need for better visibility and strategies.
  - [Thread](https://x.com/SheaKetsdever/status/1805602977719189666) by @shea
  - [Post](https://x.com/bertcmiller/status/1805633566136541483) by @bert

- [Blob Inversion: An Investigation Into the June 20th 2024 Blob Spike](https://www.blocknative.com/blog/june-20th-blob-contention-event-retrospective) by [Blair Marshall](https://twitter.com/blairlmarshall) details the surge in blob base fee on June 20 which exceeded the cost of calldata, leading to significant overpayments by L2s.
  - [Thread](https://x.com/blocknative/status/1806043723538821609) by[Blocknative](https://x.com/blocknative)

- [Constitutional AIP: Proposal to adopt Timeboost, a new transaction ordering policy](https://forum.arbitrum.foundation/t/constitutional-aip-proposal-to-adopt-timeboost-a-new-transaction-ordering-policy/25167) by [Arbitrum Foundation](https://arbitrum.foundation/) proposes adopting [Timeboost](https://github.com/OffchainLabs/timeboost-design) for Arbitrum chains to improve transaction inclusion and capture MEV.
  - [FAQ](https://forum.arbitrum.foundation/t/constitutional-aip-proposal-to-adopt-timeboost-a-new-transaction-ordering-policy/25167/2) by [Arbitrum Foundation](https://arbitrum.foundation/)
  - [Thread](https://x.com/edfelten/status/1808141124873146654) by [Ed Felten](https://x.com/EdFelten)
  - [Thread](https://x.com/entropyadvisors/status/1806528779017470228?s=52) by [Entropy Advisors](https://x.com/EntropyAdvisors)
  - [Post](https://x.com/terencechain/status/1806725022750568510) by [Terence Tsao](https://terencecha.in/)
  - [Post](https://x.com/0x94305/status/1807878758382424101) by [Alex Nezlobin](https://x.com/0x94305)

- [Orbit SSF: solo-staking-friendly validator set management for SSF](https://ethresear.ch/t/orbit-ssf-solo-staking-friendly-validator-set-management-for-ssf/19928) by [Francesco](https://twitter.com/fradamt) examines different approaches to validator capping while maintaining solo staking viability.
  - [Thread](https://x.com/fradamt/status/1806612073637671224) by [Francesco](https://twitter.com/fradamt)

- [Epochs and slots all the way down: ways to give Ethereum users faster transaction confirmation times](https://vitalik.eth.limo/general/2024/06/30/epochslot.html) by [Vitalik Buterin](https://vitalik.eth.limo/) discusses ways to improve transaction confirmation times, including SSF and preconfirmations.
- [Estimating Validator Decentralization Using p2p Data](https://ethresear.ch/t/estimating-validator-decentralization-using-p2p-data/19920) by [Jonas](https://x.com/mempirate) and [Naman Garg](https://x.com/namn_grg) presents research done under [ROP-8](https://efdn.notion.site/ROP-8-Geographical-distribution-of-Ethereum-validators-bad7233658cc41f38b26e7b4f6cf6e8b) to analyze the geographical distribution of Ethereum validators.
  - [Thread](https://x.com/soispoke/status/1806279231971696914?s=52) by [Thomas Thiery](https://twitter.com/soispoke)

- [Crypto Crossroads: Reflections from an IC3 Summer Camp Rookie](https://collective.flashbots.net/t/crypto-crossroads-reflections-from-an-ic3-summer-camp-rookie/3589) by @PradyumnaShome describes their experiences from participating in the IC3 summer camp, and thoughts on topics such as TEEs and MEV.
- [Fork Choice Attacks and Protections in EPBS](https://ethresear.ch/t/fork-choice-attacks-and-protections-in-epbs/19951) by [Terence Tsao](https://terencecha.in/) explores fork choice attacks through the perspective of ePBS, focusing on the new fork choice boost parameters and the rationale behind their design.
- [Pricing Gas Fee Derivatives](https://ethresear.ch/t/pricing-gas-fee-derivatives/19898) by [Finn Casey Fierro](https://x.com/f_casey_fierro) outlines a methodology for understanding and pricing gas derivatives.
- [ETH Supply Chain Future](https://x.com/jon_charb/status/1805802838028960150) by [Jon Charbonneau](https://x.com/jon_charb) discusses various proposals related to APS, ET, EA, IL, MEV burn, and multi-block MEV.
  - [Reply](https://x.com/barnabemonnot/status/1805962635835310094) by [Barnabé Monnot](https://barnabemonnot.com/)
  - [Reply](https://x.com/nero_eth/status/1805837199415366081) by [Toni Wahrstätter](https://toniwahrstaetter.com/)

- [Inclusion Lists Don’t Fix Multi-Block MEV in APS](https://x.com/_charlienoyes/status/1806186662327689441) by [Charlie Noyes](https://x.com/_charlienoyes) discusses the potential issues of multi-block MEV in APS, and why ILs are ineffective in solving these problems.
  - [Reply](https://x.com/barnabemonnot/status/1806232369512210863) by [Barnabé Monnot](https://barnabemonnot.com/)

- [ETH Staking Security: How Risk-Adjusted Rewards Mitigate Forked Software Threats](https://figment.io/insights/eth-staking-security-how-risk-adjusted-rewards-mitigate-forked-software-threats/?utm_source=twitter&utm_medium=share&utm_term=6-28&utm_content=&utm_campaign=content) by [Figment](https://figment.io/) explores risk-adjusted rewards for validators, timing games, and the risks associated with running forks of MEV-Boost.
- [From Censorship to Centralization: 4 Dimensions of Ethereum Relay’s Public Goods Problem](https://eigenphi.substack.com/p/eth-relay-public-goods-problem) by [EigenPhi](https://eigenphi.io/) explores the MEV-Boost relay landscape and the risk of centralization and censorship.
- [The Hidden Goldmine on L2s](https://x.com/gmEthereum/status/1806723083132191092) by [Austin Marrazza](https://x.com/gmEthereum) gives an overview of how L2s can capture revenue via arbitrage auctions.

# Posts & Threads

- [Barnabé Monnot](https://barnabemonnot.com/) published a [thread](https://twitter.com/barnabemonnot/status/1805859632583184728) emphasizing that the benefit of execution _auctions_ over execution _tickets_ is not about preconfirmations, and that APS is not just for based rollups and preconfirmations.
- [Barnabé Monnot](https://barnabemonnot.com/) published a[thread](https://twitter.com/barnabemonnot/status/1806814560168378519) to discuss how[rainbow staking](https://ethresear.ch/t/unbundling-staking-towards-rainbow-staking/18683?u=barnabe) fits in a larger roadmap for staking, and its benefits and trade-offs.
- [Terence Tsao](https://terencecha.in/) published a series of posts related to [timing games](https://x.com/terencechain/status/1806362267614842959), [ePBS and preconfirmations](https://x.com/terencechain/status/1805233847896035364), [multi-block MEV](https://x.com/terencechain/status/1806703496085078526), and [block actions vs slot auctions.](https://x.com/terencechain/status/1807419908667703763)
- [Alex Nezlobin](https://x.com/0x94305) published a [post](https://x.com/0x94305/status/1806006308782612699) expressing concerns related to markets for future blockspace and their implications on multi-block MEV and censorship.
  - [Reply](https://x.com/soispoke/status/1806261209026441507) by [Thomas Thiery](https://twitter.com/soispoke)
  - [Reply](https://twitter.com/potuz_eth/status/1806495897737470329) by [Potuz](https://twitter.com/potuz_eth)

- [Miha Lotric](https://x.com/MihaLotric) published a[thread](https://x.com/MihaLotric/status/1805623343069958452) to present the[bottom-of-the-block backrunning SUAPP](https://collective.flashbots.net/t/crucible-hackathon-yak-bottom-of-the-block-backrunner/3581) built during the[Crucible hackathon](https://collective.flashbots.net/t/crucible-hackathon-overview/3585).
- [Kevin](https://x.com/kvny2046) published a [thread](https://x.com/kvny2046/status/1805932097829540342) that compares SGX to TDX, and provides an overview of SEAM and VMX.
- [Jonah Burian](https://x.com/_JonahB_) published a[post](https://x.com/_jonahb_/status/1806150230511132892) on the interplay between ILs and multi-block MEV.
- [Potuz](https://twitter.com/potuz_eth) published a [thread](https://twitter.com/potuz_eth/status/1807148826396090537) sharing their thoughts on based rollups, preconfirmations, and where to go from here.
- [Michael](https://x.com/mostlyblocks) published a [post](https://x.com/mostlyblocks/status/1808177418760307107) on delegated gateway designs, and why they will fail to prevent centralization due to multi-block MEV and switching costs.
- [Jon Charbonneau](https://x.com/jon_charb) published a [thread](https://x.com/jon_charb/status/1806380432419623356) to express concerns related to the development of centralized infrastructure for preconfirmations and based sequencing.
- [Michael Ippolito](https://x.com/MikeIppolito_) published a[thread](https://x.com/mikeippolito_/status/1806353161273167972) on the topic of PBS, preconfirmations and Ethereum’s roadmap.
- [Dan Robinson](https://x.com/danrobinson) published a [thread](https://x.com/danrobinson/status/1807822969760370995) to summarize proposed mechanisms for improved censorship resistance.
- [Charlie Noyes](https://x.com/_charlienoyes) published a[thread](https://x.com/_charlienoyes/status/1805778876632862958) that questions why rollups would choose to become based.
  - [Reply](https://x.com/DavideCrapis/status/1805809122920837593) by[Davide Crapis](https://x.com/DavideCrapis)
  - [Reply](https://x.com/llamaonthebrink/status/1807070703562166552) by[MilliΞ](https://x.com/llamaonthebrink)

- [Charlie Noyes](https://x.com/_charlienoyes) published a [thread](https://twitter.com/_charlienoyes/status/1806097184951320689) to express their thoughts related to making L1 more attractive for apps, maximizing DA, and stabilizing MEV.
  - [Reply](https://x.com/_JonahB_/status/1806150230511132892) by [Jonah Burian](https://x.com/_JonahB_)

# Talks & Discussions

- [Flashwares: What do MEV apps want from TEEs anyway?](https://www.youtube.com/watch?v=djZf2RIWtes) by @mateusz and @dmarz explores the process of designing and building SUAPPs.
  - [Forum post](https://collective.flashbots.net/t/flashwares-v-what-do-mev-apps-want-from-tees-anyway/3570) by @mateusz
  - [Thread](https://x.com/DistributedMarz/status/1805640541360550110) by @dmarz

- [SUAPP Development: Setting Up a SUAPP](https://www.youtube.com/live/sZNkcuflZyk?si=FOxwjJcHqTA0o2JM) by @brock builds a SUAPP from scratch, and showcases everything you need to know in order to start building your own.
- [Bell Curve](https://x.com/thebellcurvepod):[Ethereum’s Path Forward: Aligning Security and Monetary Policy](https://www.youtube.com/watch?v=DP3vq5baceI) invites @Hasu and [Justin Drake](https://twitter.com/drakefjustin) to discuss restaking, preconfirmations, MVI, and more.
- [MEV-Boost community call #9](https://www.youtube.com/watch?v=UgoFjNkkTac) hosted by [Alex Stokes](https://stokes.io/) brought together the MEV-Boost community to discuss [Commit-Boost](https://github.com/Commit-Boost), the recent [relay underflow bug](https://collective.flashbots.net/t/disclosure-underflow-bug-in-mev-boost-relay/3599/), the blob market, and more.
  - [Agenda](https://collective.flashbots.net/t/mev-boost-community-call-9-26-june-2024/3538) by[Alex Stokes](https://stokes.io/)

- [ePBS breakout room #2](https://www.youtube.com/watch?v=w7Wa6oprEhQ) hosted by [Potuz](https://x.com/potuz_eth) discussed concerns related to the timing of block processing, fork choice specification, PTC rewards, and more.
  - [Agenda](https://github.com/ethereum/pm/issues/1060) by [Potuz](https://x.com/potuz_eth)
  - [Notes](https://hackmd.io/@ttsao/epbs-breakout2) by [Terence Tsao](https://twitter.com/terencechain)

- [ePBS breakout room #3](https://youtu.be/J1e5iUvcTDU?si=tzila-b6G5gk8AfY) hosted by[Potuz](https://x.com/potuz_eth) reviewed the latest progress on the consensus specification, and the effort of rebasing to the latest Electra release.
  - [Agenda](https://github.com/ethereum/pm/issues/1067) by[Potuz](https://x.com/potuz_eth)
  - [Notes](https://hackmd.io/@ttsao/epbs-breakout3) by[Terence Tsao](https://twitter.com/terencechain)

- [Indexed Podcast](https://x.com/indexed_pod): [Should we Keep Event Logs on Ethereum??](https://www.youtube.com/watch?v=JQSrK39Zkyk) with [Boxer](https://twitter.com/0xBoxer), [Danning Sui](https://twitter.com/sui414) and [hildobby](https://twitter.com/hildobby_) invites [Alvin Hsia](https://x.com/alvinhsia) and [Mark Tyneway](https://x.com/tyneslol) for a conversation on event logs and their impact on growth and scaling.
- [Into the Bytecode: OneBalance, credible accounts and credible commitments](https://www.youtube.com/watch?v=fKoE9h50ch0) invites [Stephane Gosselin](https://twitter.com/thegostep) to discuss credible commitment machines, the CAKE framework and the _Credible stack_.
  - [Post](https://x.com/sinahab/status/1805316665099403476) by [Sina Habibian](https://x.com/sinahab)

# Other

- [Request for SuApp: Kettle Cash](https://collective.flashbots.net/t/request-for-suapp-kettle-cash/3614) by @socrates1024 describes the potential for TEEs to provide One-Shot Signatures.
  - [Thread](https://x.com/socrates1024/status/1807132103588667651) by @socrates1024

- [Destructive Hardware Trojan Detection Protocol Brainstorming](https://collective.flashbots.net/t/destructive-hardware-trojan-detection-protocol-brainstorming/3596) by @Quintus explores a decentralized quality assurance protocol to defend against TEEs that are maliciously built to deviate from specification.
- [Releasing Reth 1.0!](https://www.paradigm.xyz/2024/06/reth-prod) by [Georgios Konstantopoulos](https://x.com/gakonst) announces the release of [Reth 1.0](https://github.com/paradigmxyz/reth/releases) as a production-ready EL-client written in Rust.
  - [Thread](https://x.com/gakonst/status/1805920383390154845) by [Georgios Konstantopoulos](https://x.com/gakonst)

- [Execution layer cross-validation](https://gist.github.com/karalabe/47c906f0ab4fdc5b8b791b74f084e5f9) by [Péter Szilágyi](https://x.com/peter_szilagyi) emphasizes the need for client diversity and proposes a method to verify blocks using multiple clients.
  - [Post](https://x.com/peter_szilagyi/status/1805674857616560527) by [Péter Szilágyi](https://x.com/peter_szilagyi)

- [issuance.wtf](https://issuance.wtf/) by [caspar](https://x.com/casparschwa) is a collection of resources related to Ethereum issuance.

# Upcoming events

- **July 7** : [Anti MEV MEV Day](https://lu.ma/vuo7hnxb) by [Unaligned Hauz](https://x.com/UnalignedHouse) and [SemanticLayer](https://x.com/SemanticLayer)
- **July 7** : [Sequencing x CAKE day](https://lu.ma/sequence-cake-ethcc) by [Espresso](https://www.espressosys.com/) and [Frontier Research](https://frontier.tech/)
- **July 8-11** : [EthCC](https://ethcc.io/)by [Ethereum France](https://x.com/Ethereum_France)
- **July 8** : ​​[Searcher.wtf](http://searcher.wtf/) by [aori](https://www.aori.io/), [Flood](https://www.flood.bid/), [Chainbound](https://www.chainbound.io/), [PropellerHeads](https://www.propellerheads.xyz/), [bloXroute Labs](https://bloxroute.com/) and [Barter](https://x.com/BarterDeFi)
  - [Agenda](https://x.com/aori_io/status/1800995455033078157) by [aori](https://www.aori.io/)
  - [Post](https://x.com/aori_io/status/1795527658635223304) by [aori](https://www.aori.io/)
  - [Post](https://x.com/0xtaker/status/1795531326671450166) by [Taker](https://x.com/0xtaker)

- **July 9** : [L2con](https://lu.ma/l2con) by [Epic Web3](https://x.com/epicweb3)
- **July 9** : [Kiln Rendez-Vous EthCC 2024](https://lu.ma/eb8u354a) by [Kiln](https://www.kiln.fi/)
  - [Post](https://twitter.com/Kiln_finance/status/1806337197097820560) by [Kiln](https://www.kiln.fi/)

- **July 10** : [FHE Summit](https://www.fhesummit.com/)by [FHE Onchain](https://x.com/FHEOnchain)
- **July 10:** [The entrenched: dApps and their MEV](https://lu.ma/ddnoqn9m) by [Sorella Labs](https://x.com/SorellaLabs) and [Fenbushi Capital](https://x.com/fenbushi)
- **July 11** : [State of Onchain Liquidity](https://lu.ma/stateofonchainliquidity) by [Flashbots](https://www.flashbots.net/), [Uniswap Foundation](https://www.uniswapfoundation.org/) and [PropellerHeads](https://www.propellerheads.xyz/)
  - [Thread](https://x.com/PropellerSwap/status/1806306548890911192) by [PropellerHeads](https://www.propellerheads.xyz/)

- **July 11** : [Unaligned Day](https://x.com/ThogardPvP/status/1796189563754369273) by [FastLane Labs](https://x.com/0xFastLane)
  - [Thread](https://x.com/ThogardPvP/status/1796189563754369273) by [Alex Watts](https://x.com/ThogardPvP)
  - [Thread](https://x.com/thogardpvp/status/1798762413455708261) by [Alex Watts](https://x.com/ThogardPvP)

- **July 11-13** : [Modular Summit 3.0](https://modularsummit.dev/) by [Celestia Labs](https://celestia.org/) and [Maven11](https://www.maven11.com/)
- **Aug 6** : [The MEV Workshop at the Science of Blockchain Conference 2024 (MEV SBC ’24)](https://collective.flashbots.net/t/the-mev-workshop-at-the-science-of-blockchain-conference-2024-mev-sbc-24/3527) by[Flashbots](https://www.flashbots.net/)
- **Aug 7-9** : [The Science of Blockchain Conference 2024 (SBC’24)](https://www.sbc-conference.com/) by [IC3](https://www.initc3.org/), [Stanford Center for Blockchain Research](https://cbr.stanford.edu/) and [UC Berkeley RDI](https://rdi.berkeley.edu/).
- **Aug 16-17** : [Frontiers](https://frontiers.paradigm.xyz/) by [Paradigm](https://www.paradigm.xyz/)
  - [Thread](https://x.com/gakonst/status/1797671854150402327) by [Georgios Konstantopoulos](https://x.com/gakonst)

* * *

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