# The MEV Letter #71

**URL:** https://collective.flashbots.net/t/the-mev-letter-71/4621
**Category:** The Flashbots Ship
**Tags:** the-mev-letter
**Created:** [January 20, 2025, 10:52pm UTC](https://collective.flashbots.net/t/the-mev-letter-71/4621 "2025-01-20T22:52:57Z")
**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: [January 20, 2025, 10:52pm UTC](https://collective.flashbots.net/t/the-mev-letter-71/4621/1 "2025-01-20T22:52:57Z")

</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

- [TTEE - Update on technical work](https://forum.teekettle.org/t/ttee-update-on-technical-work/18) by @Quintus provides an update on [Project Trustless TEE](https://collective.flashbots.net/t/project-t-tee-from-trusted-to-trustless-execution-environments/3541) by outlining the problem space and ongoing efforts.
- [Native rollups—superpowers from L1 execution](https://ethresear.ch/t/native-rollups-superpowers-from-l1-execution/21517) by [Justin Drake](https://twitter.com/drakefjustin) suggests a pathway for EVM-equivalent rollups to inherit full Ethereum L1 security, and eliminate the need for security councils.
- [Block-level fee markets: Four easy pieces](https://ethresear.ch/t/block-level-fee-markets-four-easy-pieces/21448) by [Barnabé Monnot](https://barnabemonnot.com/) discusses alternative approaches for metering and pricing blockchain resources to improve scalability and cost efficiency.
- [Embedded Rollups, Part 1: Introduction](https://ethresear.ch/t/embedded-rollups-part-1-introduction/21460) by[Lin Oshitani](https://x.com/linoscope) and[Conor McMenamin](https://x.com/ConorMcMenamin9) explores embedded rollups and demonstrates a key-value store example, which can be applied to services like [ENS](https://ens.domains/developers) and [Keystore](https://vitalik.eth.limo/general/2023/06/09/three_transitions.html).
  - [Post](https://x.com/ConorMcMenamin9/status/1879929948498252199) by[Conor McMenamin](https://x.com/ConorMcMenamin9)
  - [Post](https://x.com/linoscope/status/1879942549215015406) by[Lin Oshitani](https://x.com/linoscope)

- [Embedded Rollups, Part 2: Shared Bridging](https://ethresear.ch/t/embedded-rollups-part-2-shared-bridging/21461) by [Lin Oshitani](https://x.com/linoscope) and [Conor McMenamin](https://x.com/ConorMcMenamin9) introduces an embedded shared-bridge rollup to enable fast and efficient cross-chain interoperability.
- [Block-Level Warming](https://ethresear.ch/t/block-level-warming/21452) by [Toni Wahrstätter](https://toniwahrstaetter.com/) proposes block-level address and keeping accessed slots warm throughout a block’s execution to optimize gas costs and improve efficiency.
  - [Post](https://x.com/nero_eth/status/1879806424173404180) by[Toni Wahrstätter](https://toniwahrstaetter.com/)
  - [Reference Implementation](https://github.com/nerolation/execution-specs/tree/block-level-warming) by [Toni Wahrstätter](https://toniwahrstaetter.com/)

- [Joint Report on recent developments in crypto-assets](https://www.esma.europa.eu/document/joint-eba-esma-report-recent-developments-crypto-assets-article-142-mica) by [ESMA](https://www.esma.europa.eu/) provides an analytical assessment on DeFi, MEV, market trends, and regulatory challenges under [MiCA](https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica).
  - [Thread](https://x.com/MarinaMarkezic/status/1879909192300949647) by [Marina Markezic](https://x.com/MarinaMarkezic)

- [Ethereum Macroeconomics via Dynamics ½](https://blog.20squares.xyz/issuance-dynamics/) by [Eric Downes](https://www.linkedin.com/in/edownes/) analyzes Ethereum’s macroeconomics and how staking, inflation, and validator behavior influence network stability and governance over time.
- [MEATBAL: Mitigating Extractive Actions via Trusted Blockchain Accountability Layer, or How to stop 95% of DeFi Hacks at Scale](https://ethresear.ch/t/meatbal-mitigating-extractive-actions-via-trusted-blockchain-accountability-layer-or-how-to-stop-95-of-defi-hacks-at-scale/21471) by [Sam Bacha](https://www.linkedin.com/in/sambacha/) propose the implementation of two new Ethereum JSON-RPC methods for MEV Relays to mitigate risks associated with malicious activities.
- [Post-Election Thoughts Arbitrage Trading in Prediction Markets](https://taker.mirror.xyz/ZcfYR06Vkccv8Fx71IpiWEoYGqXdoGMyOdcMu1_TkVA) by[Taker](https://x.com/0xTaker) examines pricing discrepancies across prediction markets and arbitrage strategies from the US presidential election.
  - [Thread](https://x.com/0xTaker/status/1880296753632801283) by[Taker](https://x.com/0xTaker)

- [History of Application Design](https://collective.flashbots.net/t/history-of-application-design/4619) by @tesa traces the evolution of application design from command-line interfaces, to mobile, web3, and AI agents.
- [Unpacking The Next Generation Of Ethereum L2s (I): Based Rollups](https://x.com/2077research/status/1879976056750502327) by [Pavel Paramonov](https://x.com/@paramonoww) explores the architecture, benefits, and trade-offs of based rollups.
- [To Pump The Gas Or Not: Analyzing The Ethereum Gas Limit Debate](https://research.2077.xyz/to-pump-the-gas-or-not-analyzing-the-ethereum-gas-limit-debate-1#introduction) by[Seongwan Park](https://twitter.com/seongwan_eth) analyzes the implications of a gas limit increase on network decentralization and stability.
  - [Thread](https://x.com/2077research/status/1880343190412103870) by[2077 Research](https://research.2077.xyz/)

- [How Espresso Network is an interoperability “superchain” for all Ethereum L2s](https://x.com/benafisch/status/1879286460274401610) by [Ben Fisch](https://x.com/benafisch) details how [Espresso Network](https://www.espressosys.com/) is designed to enable fast and trust-minimized interoperability for L2s.
- [Delegation in Bolt: Outsourcing Sophistication While Preserving Decentralization](https://x.com/boltprotocol_/status/1879571451621077413) by [Moncesco](https://x.com/fra_mosterts) and [mempirate](https://x.com/mempirate) explores levels of delegation in [bolt](https://boltprotocol.xyz/), analyzing their implications for centralization, censorship-resistance, and fault attribution.

# Posts & Threads

- [@SHL0MS](https://x.com/SHL0MS) published a [post](https://x.com/shl0ms/status/1880051418918506558) introducing [hell.tech](https://t.co/oxMnB88roI), a memetic experiment leveraging [Teleport](https://teleport.best/) to allow users to make deals with [@s8n](https://x.com/s8n) and give it secure account access to enact consequences if the terms are broken.
  - [Post](https://x.com/sxysun1/status/1880065164944224498) by @sxysun
  - [Post](https://x.com/ropirito/status/1880052224660799556) by [Ropirito](https://x.com/ropirito)

- [Deal with @s8n (How?)](https://x.com/sxysun1/status/1880289552616616085) by @sxysun outlines further details related to the social experiment where users negotiated deals with [@s8n](https://x.com/s8n) by staking their digital identity as collateral.
- [Uma Roy](https://x.com/pumatheuma) published a[thread](https://x.com/pumatheuma/status/1880286928219853293) outlining how [native rollups](https://ethresear.ch/t/native-rollups-superpowers-from-l1-execution/21517) are designed to inherit the security of Ethereum L1, maintain EVM compatibility, and scale using ZKPs.
- [Ari Kiry](https://x.com/ari_kiry) published a [thread](https://x.com/ari_kiry/status/1880680321328591037) describing [Chainlink](https://chain.link/)’s efforts to redistribute MEV with [Smart Value Recapture](https://blog.chain.link/chainlink-smart-value-recapture-svr/) and [Protected Order Flow framework](https://prof-project.github.io/).
- [Taiko Gwyneth](https://x.com/gwyneth_taiko) published a[thread](https://x.com/gwyneth_taiko/status/1878873534048665747) outlining how preconfirmations are designed to provide instant transaction assurances on rollups.
- [Markus](https://x.com/markus_0_) published a [thread](https://x.com/markus_0_/status/1880009599706939867) describing why execution preconfirmations are ineffective in CEX-DEX arbitrage, due to information leakage.
- [EigenPhi](https://eigenphi.io/) published a [thread](https://x.com/eigenphi/status/1881431533841723810) detailing how a user got sandwiched and lost $796K when adding liquidity to a Uniswap v2 pool, and provides information on how to mitigate these risk.
- [Spire](https://x.com/Spire_Labs) published a[thread](https://x.com/spire_labs/status/1879361318106640512) explaining how builders are selected in[Spire](https://www.spire.dev/)’s[Based Stack](https://github.com/spire-labs/litepaper/blob/main/The%20Based%20Stack%20by%20Spire%20Labs%20-%20Litepaper.pdf).

# Talks & Discussions

- [Recordings](https://www.youtube.com/playlist?list=PLpktWkixc1gX2bjN90WvZehVvaRvbvkAO) from [Columbia CryptoEconomics Working Session 2024](https://www.columbia.edu/content/events/columbia-cryptoeconomics-cce-workshop-2024) hosted by [Briger Family Digital Finance Lab](https://business.columbia.edu/dfi/labs/briger-family-digital-finance-lab), [School of Engineering and Applied Science at Columbia University](https://www.engineering.columbia.edu/) and [Ethereum Foundation](https://ethereum.foundation/) have been uploaded:
  - [MEV Capture](https://youtu.be/R3iDnR3rBYU?si=d0ExdBA8C5hpDF2a) by [Fahad Saleh](https://www.cryptoeconprof.com/)
  - [Resonance](https://www.youtube.com/watch?v=R3iDnR3rBYU&t=1243s) by [Naveen Durvasula](https://ndurvasula.com/)
  - [L2 Interop](https://www.youtube.com/watch?v=R3iDnR3rBYU&t=3045s) by [Noah Pravecek](https://x.com/noah_pravecek)
  - [Prover marketplace economics](https://youtu.be/Z3RD2nnE0H0?si=ZO0ACRkf0h-ZSsog) by [Jacob Everly](https://x.com/JacobEv3rly) and [Tim Carstens](https://x.com/intoverflow)
  - [Future of staking](https://www.youtube.com/watch?v=Z3RD2nnE0H0&t=1947s) by [Caspar Schwarz-Schilling](https://twitter.com/casparschwa), [Ansgar Dietrichs](https://twitter.com/adietrichs), [Francesco D’Amato](https://twitter.com/fradamt) and [Barnabé Monnot](https://barnabemonnot.com/)
  - [An APS research program](https://youtu.be/5wwwxJJZoWQ?si=Z_8f6GFwuXHiUwNa) by [Julian Ma](https://twitter.com/_julianma)
  - [Picking the EL fruits](https://youtu.be/dh1mbUorKN8?si=q4HUCR4d3he-GTyO) by [Dankrad Feist](https://dankradfeist.de/) and [Ansgar Dietrichs](https://twitter.com/adietrichs)
  - [Unifying Ethereum’s Priority Markets](https://youtu.be/yMh6E2AtBKI?si=T5nTUn_V9A6ycmMa) by @Quintus
  - [Snarkify everything!](https://youtu.be/SzQlH-zuuuA?si=Of7OwWnQMyhQ3Up6) by [Justin Drake](https://twitter.com/drakefjustin)
  - [Future of staking breakout](https://youtu.be/zqoUkZmMk1A?si=zio8hIRIh-7ejFCR) by [Ansgar Dietrichs](https://twitter.com/adietrichs), [Barnabé Monnot](https://barnabemonnot.com/), [Caspar Schwarz-Schilling](https://twitter.com/casparschwa) and [Francesco D’Amato](https://twitter.com/fradamt)
  - [Future of interoperability](https://youtu.be/AByP3IzJWDs?si=YAkg5WiXaptPdRdF) by [Ellie Davidson](https://x.com/ellierdavidson)
  - [Closing Remarks](https://youtu.be/Ob0EpxY8OGk?si=sUd57m9uoZ3rWgq_) by [Tim Roughgarden](http://www.timroughgarden.org/), [Julian Ma](https://twitter.com/_julianma), [Dankrad Feist](https://dankradfeist.de/), [Ansgar Dietrichs](https://twitter.com/adietrichs), @Quintus , [Justin Drake](https://twitter.com/drakefjustin), [Barnabé Monnot](https://barnabemonnot.com/) and [Ellie Davidson](https://x.com/ellierdavidson)
  - [Post](https://x.com/Tim_Roughgarden/status/1879648646343315752) by [Tim Roughgarden](http://www.timroughgarden.org/)

- [Indexed Podcast](https://x.com/indexed_pod):[Solana MEV w/ Ghost](https://www.youtube.com/watch?v=yygUbWls4zU) invites [chris](https://x.com/chrischang43) to explore the intricacies of how MEV varies on Ethereum and Solana.
  - [Post](https://x.com/indexed_pod/status/1879988170575737209) by[Indexed Podcast](https://x.com/indexed_pod)
  - [Post](https://x.com/sui414/status/1880139526481604791) by @sui414

- [L2 Interop Working Group #1](https://www.youtube.com/watch?v=hvg3QPF0_z4) hosted by [Josh Rudolf](https://x.com/rudolf6_) brought together representatives from the L2s ecosystem to discuss standards for chain-specific addresses and cross-chain messaging.
  - [Notes](https://notes.ethereum.org/@rudolf/L2Interop-call-01) by [Josh Rudolf](https://x.com/rudolf6_)

- [EVM Resource Pricing Breakout #1](https://www.youtube.com/watch?v=WVk6PLpLAa4) hosted by [Davide Crapis](https://x.com/DavideCrapis) invited core devs and researchers to discuss updates to gas pricing, opcode costs, [block-level warming](https://ethresear.ch/t/block-level-warming/21452), and more.
  - [Notes](https://hackmd.io/@kevaundray/Bk79ICIv1e) by [Kev Wedderburn](https://x.com/kevaundray)
  - [Post](https://x.com/DavideCrapis/status/1881393769188388901) by [Davide Crapis](https://x.com/DavideCrapis)

# Other

- [TEE Kettle](https://forum.teekettle.org/) by [Poetic Technologies](https://poeticte.ch/) is a community run forum for in-depth discussions on TEEs, including both secure hardware and software perspectives.
  - [Post](https://x.com/Poetic_Tech/status/1880952153629737160) by [Poetic Technologies](https://poeticte.ch/)
  - [Flashbots Intro To The Forum](https://forum.teekettle.org/t/flashbots-intro-to-the-forum/19) by @Quintus

- [Pectra.wtf](https://pectra.wtf/) by [Sébastien Rannou](https://x.com/aimxhaisse) is a collection of resources related to Pectra, with interactive charts for penalties and slashing.
  - [Post](https://x.com/aimxhaisse/status/1880278057224925335) by[Sébastien Rannou](https://x.com/aimxhaisse)

- [DeFi’s Hidden Choreography: From Protocol Ballet to Financial Chess](https://eigenphi.substack.com/p/defi-transactions-of-2024) by [EigenPhi](https://eigenphi.io/) summarizes their publications from last year related to searching, solving, and exploits.
- ​​[Ethereum’s Perfect Storm: How Centralization Threatens DeFi’s Future](https://eigenphi.substack.com/p/ethereums-perfect-storm-in-2024) by[EigenPhi](https://eigenphi.io/) highlights a collection of their posts from last year analyzing the builder market.

* * *

✉ [**Sign up here**](https://flashbots.net/the-mev-letter) if you’d like to get The MEV Letter straight to your inbox!

[Previous editions of The MEV Letter  
 ](https://collective.flashbots.net/tag/the-mev-letter)[Join Flashbots ⚡ 🤖](https://www.flashbots.net/jobs)