Panoramic interpretation of the emergence, category and development of miner's extractable value MeV

Dodo Research Institute 2021-09-14 20:16:31 阅读数:719

panoramic interpretation emergence category development

Original title :《 On MEV| produce 、 Category and development 》

author :Rita Chen


Blockchain is more transparent and traceable than most systems in the world , But there is still an invisible game behind this ,MEV( Miners can extract value / Maximum extractable value ) Is the hidden dark forest . It may be behind every transaction .

This article aims at MEV Make a systematic introduction , Include MEV The principle and generation of 、MEV The type of 、MEV Market size of 、 Answer MEV In many ways 、 be based on MEV Protocols and Applications , And others in the public chain MEV. We hope that whatever you say about MEV Do you know , You can get something .

01. MEV Principle

MEV Its full name is   Miner Extractable Value , Miners can extract value . A miner ( It also includes verifiers, etc ) On the blockchain, for the blocks mined by yourself , In the process of packing blocks , Use to reorder transactions 、 Insert 、 Ability to ignore or review , The amount of profit obtained in addition to transaction fees and block Awards .

In today's Ethereum Ecology , Many focus on DeFi The trading strategy robot has also entered the extraction stage MEV The ranks of the . therefore ,MEV It can also be called  Maximal Extractable Value, Maximum extractable value ; Without permission , The total value extracted from the transaction order .

02. MEV The birth of

MEV The production of comes from , When a user submits a transaction on the blockchain , There is a delay between the transaction information being transmitted to the network and the actual block being mined . Before Ethereum transactions are included in a block , The transaction is located in a pool called memory pool (mempool) In the pending publicly accessed transaction pool , Everyone can see the content . Arbitragers and miners can listen to this memory pool , And find opportunities to maximize your profits , For example, through early trading . Miners can also rearrange the order of transactions . And in this period of time , Users basically have no control over when and in what order the transaction is executed . in general , The process of miners digging blocks is fair , But miners have a lot of control over transactions that can be included in the block .MEV It is the invisible tax levied by miners and arbitragers on ordinary users .

03. MEV The type of

MEV stay DeFi field , It is divided into Benign MEV、 Bad MEV And catastrophic MEV.

3.1 Benign MEV

Mainly occurs in arbitrage trading and clearing .

1. Arbitrage trading

finger Maintain the effectiveness of the market through arbitrage between different exchanges , Benefit the ecosystem .

Example <1>: Users are different DEX Arbitrage between . Basically, when the price of contemporary currency changes , The first user to trade on the exchange immediately after the asset price changes , Get arbitrage profits , Bring the price in line at last . This type of extraction MEV  Independent of other transactions in the memory pool , It only depends on the first user .

Example <2>: The user made a large transaction on the trading platform, resulting in a decline in price , There is a large arbitrage space . Arbitrage robots carry out arbitrage transactions , Arbitrage the market price to the real price level . This type of extraction MEV  Will not harm the interests of the original trader in the process .

Actual case : Arbitrageurs use 139.095 individual ETH stay SushiSwap purchase 5.7648 individual WBTC; And then in 0x Protocol On the use of 5.7648 individual WBTC purchase 2,269,314.6698 individual USDT; Last in Uniswap Sell on the market 2,269,314.6698 individual USDT, Exchange for 1,352.1242 individual ETH; Reap profit 1,213.029 individual ETH(= 1,352.1242 ETH - 139.095 ETH).

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2. Liquidation

The operation of some protocols depends on MEV, For example, yes. Aave Protocol、Maker、Compound Liquidation . stay DeFi In the mortgage agreement , When the value of the collateral decreases , If you don't make up or sell the collateral , It will trigger the liquidation process . The liquidator can pay below the market price 3%-5% A discount of , Get as ETH Such mortgage assets , And this 3%-5% The discount value of , Namely MEV.

Actual case : user A stay Aave Protocol Up deposit 1,100.8306 individual LINK As collateral , To lend 11,558.3174 individual DAI. Suppose at some point LINK The price of... Fell , Resulting in a reduction in the total value of the collateral , And has fallen out of the clearing line ; But this time 1,100.8306 individual LINK The total value of , Still higher than 11,558.3174 individual DAI. Now the order is open , Forced liquidation , Any user can clear this order . therefore , user B stay Compound On loan 11,558.3174 individual DAI, And in Aave Protocol Pay on 11,558.3174 individual DAI, In exchange for 1,100.8306 individual LINK, To earn money MEV.

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(0x963054a6001e4711a64b5dc35a37a0eb3aaf3bb7c204f021dd5e85e7a8a51a3 1)

3.2  Bad  MEV

It mainly happens when robots rush 、 Sandwich arbitrage, etc . It is not conducive to the normal operation of Ethereum .

1. Sandwich arbitrage (Sandwich Trading)

When a user makes a transaction on the trading platform , The arbitrage robot discovers the arbitrable transaction before the user's transaction is executed , And the user's transaction is sandwiched between his own purchase order and sales order . The user's order is executed by the arbitrage robot by artificially raising the price , Virtually, the transaction cost of users is increased , Then the arbitrage robot sells the order to make an immediate profit .

Example : Suppose the market price of a liquidity pool at the moment XX/YY=1:50, A user uses 200 XX purchase 4 YY. The arbitrage robot constructs a pen before the user 210 XX purchase 4 YY Transactions ; The user whose order is placed later wants to close , Use more than 210 individual XX purchase 4 YY. here , Arbitrage robots sell 4 YY, So as to earn a price difference , And the transaction user has to bear greater sliding point loss .

2.  Preemptive trading

When a user makes a transaction on the trading platform , The arbitrage robot sees the arbitrable transaction in the memory pool and immediately copies the transaction , At the same time, use higher Gas The fee submits the copied transaction to the miner before the transaction is executed . The type of transaction may be one with a small sliding point coefficient DEX Trade or participate in IDO etc. .

Because the data on the chain is public , When opportunities arise , Many robots will listen to the submitted transaction information and take action to participate , And give higher and higher Gas Cost quotation . Start a cost competition for arbitrage transactions , This bidding behavior is called optimal Gas Fei Jingpai /PGA(Priority Gas Auction). However , Because only one party can earn MEV, Most of the other competing robots cancel their deals or fail , This will improve what should not have been improved Gas cost . In this PGA In the competition , If no miners catch MEV, Auction settlement price and total price MEV The difference is the profit of the winning robot .

for example :DeFi The arbitrage robot captures a... Created by a transaction 10,000 The dollar MEV Arbitrage opportunities . He submitted the deal to the miners , And give a high price Gas In order for the submitted transaction to be packaged by the miner first , If it pays the miner 6000 The dollar Gas fee , So this part is what the miners got in this deal MEV, remainder 4000 Dollars are what arbitrage robots can extract MEV profits .

3.3  disastrous  MEV

By means of reorganization, etc , Threaten and harm the blockchain consensus layer .

When most miners acquire by reorganizing the transaction sequence or reorganizing blocks MEV When , The content of each packaged block is different , A lot of Uncle pieces or even 2-5 The reorganization of blocks will happen more .

The consequences of this include : Transaction confirmation takes longer , The user experience on the platform has declined ; Added 51% The possibility of computing power attack ; A large number of transactions failed , Contains a lot of failed MEV transaction , The network on the Ethereum chain may become congested , Trading on the chain Gas The cost becomes higher , This may hinder Ethereum's network effect .

Usually , Block producer's “ Incentive compatibility ” The strategy should be to extend the longest chain . But in extreme cases , If the post state of a block is profitable ( for example , It's very high MEV, Only by creating a block directly after the block can ), It may even invalidate the consensus to extend the longest chain .

for example : Suppose that the reward for each block found by the miner is 100 dollar . The miners A eureka 3 Block , The first block contains 10,000 Dollar trading arbitrage opportunities . The miners B Can be in the miners A Discovered 3 Continue mining on the first block , Or you can re mine the first block , To make the transaction 10,000 Dollar arbitrage . therefore , The miners B Decided to re dig the first block ; meanwhile , The miners B We also need to re excavate the third 2 And the first 3 Block , To match the block height . For miners C,D, And other miners , Re mining these three blocks is also their best choice , This is it. time-bandit attack . In the block, the reward is much less than MEV Under the circumstances , Miners will choose to make profits at the expense of consensus .

04. MEV It's hard to completely solve

If you try to stop the miners from getting MEV Profit amount , It is possible to stimulate the emergence of markets outside the consensus agreement . for example , If all transactions are allowed to pay the same Gas cost , Miners will likely collude with traders , And accept certain bribes to give priority to the dealer's transactions . If all transaction costs are burned or paid to a public account , Miners will probably be charged separately Gas cost .

therefore MEV It's hard to solve completely , But you can learn from the architecture of Ethereum applications , And the way users interact with it .

05. How to deal with MEV

how Reduce adverse effects MEV And catastrophic MEV The existence of , Take advantage of benign MEV  It's an important topic . According to the corresponding methods and solutions , treat MEV There are two ways of thinking :

  • “ attack ”  -  admit MVE Will continue to exist , Find a way to extract benign MEV And democratically coordinate the interests of all parties .
  • “ defensive ”  -  Eliminate or alleviate MEV.

5.1 “ attack ”

1.  Preemptive service FRaaS (Front-running as a Service)

Flashbots yes FRaaS Main appeal and representative implementer of . By extracting the... Of the transaction MEV And protect the interests of traders by means of profit redistribution . Essentially by compensating traders 、 Reward miners to encourage , Make many parties reach cooperation , Create a win-win situation . Currently include Ethermine、 Spark pool 、F2Pool、HiveonPool When the ore pool has supported Flashbots.

We will cover it in detail in the later section Flashbots.

5.2 “ defensive ”

In this coping strategy category, it is divided into , To eliminate completely MEV  and Reduce or minimize MEV.

1.  Reduce or minimize MEV

a. Privacy trading : Commit the transaction to a private memory pool (mempool) Wait in line for packing , Instead of an open memory pool . To avoid the monitoring of other trading robots .

Agreements to provide such services include :

  • 1inch Of Stealth Transactions: At present, it's only in 1inch wallet ios Provided by the client . At present, this approach faces , The risk that the transaction may be packaged into uncle pieces and made public .
  • Taichi Network: Founded by Xinghuo mine, the second largest mine of Ethereum computing power , Users can directly send transactions to the privacy pool of Xinghuo mine through the interface provided by Taiji network . Because Xinghuo mining pool does not publicly publish this transaction online , The transaction sent out has not been formally confirmed , stay Etherscan The status of the transaction cannot be seen on the .
  • bloXroute: Provide privacy communication function , Allow transactions to reach miners directly without being exposed .bloXroute Of BDN( Blockchain distribution network ) Connect the blockchain nodes with each other through their own gateway software BDN link , Gateway software and blockchain nodes first translate from the blockchain into BDN Information about . then , In the second floor , It does block compression . By greatly reducing the block size , Make it then more efficient in the blockchain distribution network (BDN) Sent in / transmission .

b. New trading mode : Design better applications , Minimize the... Generated by the program MEV.

  • CowSwap: As DEX, When two traders each hold what the other wants , Orders can be settled directly between them , There is no need for the operation of external market makers or liquidity providers . The user's order is determined by the solver (Solver) send out , And set a strict sliding point interval , Solvers compete with each other , Strive for the most favorable price for users .
  • Gnosis V2: Through batch auction , And integrate decentralized exchanges as a source of liquidity , Provide the best price for traders , Reduce the slip point as much as possible , So as to resist MEV.

2.  eliminate MEV

a. From the underlying mechanism , Change the order of transactions .

  • MEV The auction ,MEVA(MEV Auction): from Optimisim Of CTO Karl Floersch On 2020 At the beginning of the year , Separate the miner's transaction power and transaction sequencing power , Miners only reserve the right to package transactions , The transaction ranking power is carried out by a third party through auction . This third party is usually the sequencer (Sequencer). Because most Layer-2 In design, transaction sequencing is carried out through sequencer , therefore MEVA It can be said that it is specially designed for Layer-2 Create a solution .
  • We will introduce the function of sequencer in the later part .
  • Fair ranking service FSS(Fair Sequencing Services): The fair ranking service is provided by Chainlink Development , Use Chainlink Oracle service of . It first sends a request to the Oracle network , Then forward the request to the specified 、 And for FSS On your smart contract . The Oracle network passes through a network called Aequitas The design of the , These encrypted request orders are distributed at the time of arrival ( This means that low latency requests will win ) , And before the final order , They cannot be decrypted or viewed .

b. encryption : Encrypt the information sent by the transaction , So that the miners can't know the contents of the transaction .

  • Threshold decryption Threshold Decryption: from Sikka Development , As Tendermint Core BFT Plug in of consensus engine , To create a memory pool level privacy protocol . Use this plug-in , Users can submit encrypted transactions to the blockchain , Only by 2/3 The verifier can only decrypt and execute after submitting the consent to the block .
  • Distributed key generation based on threshold encryption (DKG):Shutter Network Distributed key generation using threshold based encryption (DKG) Protocol to prevent catastrophic on Ethereum MEV. Encrypt user transactions before they are sent out , Through the miner message pool , After confirming that it is packaged into the block , Then decrypt the transaction information .

06. MEV  Market size of

because MEV It can happen at any time when the user interacts with the blockchain ,MEV The exact value on Ethereum is difficult to estimate , At present, it is mainly through the extracted MEV Add up ( Lower limit ) To build this market .

The following data comes from Flashbots MEV-Explore. since 2020 year 1 month 1 Japan , end 2021 year 9 month 8 Japan , Cumulative realized MEV about 7.2 Billion dollars , In the past 30 Days have come MEV the height is 3,140 Thousands of dollars , In the past 24 Hours have been achieved MEV To achieve 10 Thousands of dollars . This is enough to become a very important source of income for miners . Of course , Real data is affected by DeFi Trading volume has a great impact . But as the DeFi The increase of the overall scale ,MEV The scale will increase accordingly .

The current market MEV Mainly from trading arbitrage , occupy 90% above ; Arising from liquidation MEV, Less than 5%.

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(Flashbots, MEV Explore)

Classified by agreement ,MEV The protocols that most often occur in include Uniswap(44%)、SushiSwap(21%)、Balancer(10%)、Curve(9.7%)、dYdX(8.6%)、0x Protocol(3.1%)、AAVE(1.9%)、Compound(1.4%).

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(Flashbots, MEV Explore )

since 2020 year 1 month , end 2021 year 9 month , Extracted from MEV Of Gas Value usage to the entire network Gas Usage quantity . Green represents success MEV transaction , Red stands for failed MEV transaction . according to Flashbots Research statistics , The failure of the MEV Traded Gas The fee can at least fill 6,235 Block , representative MEV The resulting inefficiency .

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(Flashbots, MEV Explore )

07. be based on  MEV Protocols and Applications

7.1 Flashbots

Flashbots Founded on 2020 year 11 month , It's a response to MEV Decentralized research and Development Organization , Committed to building a benign MEV ecology , At the same time reduce MEV Negative impacts and risks , promote MEV The level of democratization and transparency extracted , So that all users can learn more about MEV The details of the .

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Flashbots The ongoing project is shown in the figure , It is mainly divided into two parts: research and engineering . We will introduce in detail MEV-Geth,MEV-Relay, and MEV-Explore.

1. MEV - Geth

MEV-Geth It's a modified go-ethereum client , In order to solve the problem of extracting MEV The high amount produced in the process Gas fee . Not only can you listen to the memory pool like other nodes (mempool) Information about , You can also connect to Flashbots Operating relay server .MEV-Geth hold MEV Transactions are isolated off the chain , Provide miners and transaction searchers with an exclusive channel to bid , Allow them to communicate transaction order preferences , Prevent transactions from being discovered by other nodes in the network , To ease the chain Gas High fees and network congestion . 

MEV-Geth Introduced “ Transaction searcher ” The concept of , Its job is to monitor Ethereum status and extract information from the transaction pool MEV The opportunity of , Find the most valuable sort , And submit it to the miner using the standardized template bidding bundled with the transaction . Transaction searchers can configure the list of miners they want to submit transactions to . Want to participate in Flashbots Miners in core projects , Must be screened to enter MEV-Geth The white list .

MEV-Geth Select the most valuable bundling transaction among all bundling transactions . Compare the block containing this bundling transaction with the ordinary block without any bundling transaction .MEV-Geth Will perform , If this bundle is included, it is more valuable , Otherwise, the bundling transaction will automatically return to a normal transaction Geth In block .

MEV-Geth The advantage of is that it is unlicensed , That is, there is no credible intermediary to review the transaction ;MEV-Geth It's efficiency , Can prevent unnecessary Gas The cost is too high , Network congestion ; meanwhile MEV-Geth Privacy protection for pre transactions and failed transactions . When the pre transaction is included in the block, it becomes transparent . Failed transaction privacy prevents failed transactions from being included in the block , Means no one can find them .

2. MEV - Relay

MEV-Relay It's a deal bundle (Bundle) Relay server , Miners can be directly connected to arbitrage robots that want to be included in transactions .MEV-Relay Each bundle transaction can be simulated , And filter invalid or lower than the market in payment Gas Bundle transaction fee . The transaction searcher puts the sorted transactions that want to be packaged up the chain , Pass in a bundle MEV-Relay And submit it to MEV-Geth The miners on the white list . Miners use closed auctions to evaluate bundled transactions , Generate a block template with transaction sequence information for uplink , Include their transactions in the block .

The information contained in a bundling transaction is :

  • Bundle transactions to be executed ( By a set of sorted unfinished Ethereum transactions 、 Block height 、 Minimum timeout 、 The maximum timeout consists of );
  • With ETH Tips transferred to miners in the form of , These transactions do not require payment Gas fee , Failed transactions do not have to pay costs . Only when the transaction searcher's bundle transaction is included in a block , The tip in the bundling transaction will be paid to the miners , No, it's not .

Because these transactions are sent through parallel relay servers , It helps reduce Gas Competition and failed transactions that inflate the blockchain .

MEV-Geth and MEV-Relay The operation process of :

  1. Users can use MEV-Geth Transaction bundling in , It includes : Transaction searchers and / Or one or more transactions to be processed in the memory pool of other users . The transaction searcher calls the tip function paid to the miner through the smart contract . also ,Flashbots The bundle will always be at the top of the block .
  2. MEV-Relay Receive bundled transactions , And send it to all whitelisted MEV-Geth The miners .
  3. Miners from MEV-Relay receive Flashbots Bundles , And in MEV-Geth To process it .
  4. MEV-Geth Select the bundling transaction with the highest profit from all bundling transactions sent , Put the bundling transaction at the top of a new block .
  5. then ,MEV-Geth Compare the block that contains this bundle with the block that does not contain any bundles .
  6. Only if the transaction searcher's bundle is included in a block , Tips related to their bundles will be paid .
  7. If the block does not contain bundled transactions , The transaction is not linked , be Transaction searchers and / Or other users It won't cost any money , That is, there is no need to pay if the transaction fails or cancels Gas fee .

Existing hidden dangers :

  • Transaction searchers send bundling transactions of any nature, including invalidation , All relay servers have zero cost . Therefore, transaction searchers can send spam to the network with invalid bundled transactions , So as to form a denial of service attack on other network participants .
  • At present, miners can package multiple bundled transactions in one block , In order to maximize their own interests , Miners will choose the bundle transaction with the highest tip from the transaction searcher to pack first . And after the miners came into contact with the contents of the bundling transaction , It can be parsed , Reorder or add transactions to MEV extract .

3. MEV - Explore

MEV-Explore It's through MEV-Inspect The collected data constitutes a common panel , Display real-time quantization MEV value 、 transaction 、 classification 、Gas Cost consumption and other related information .

MEV-Inspect It is a blockchain information collection tool , You can scan Ethereum transactions and identify MEV Extraction activity , send MEV Indicators are visualized over time .

MEV-Explore The data range is from 2020 year 1 month 1 The first block of the day 9193266 rise . Put the extracted MEV It can be divided into : Interest arbitrage 、 Liquidation and arbitrage + Liquidation . Current coverage 8 Kind of DeFi agreement :AAVE,Balancer,Compound,Curve,dYdX,SushiSwap,Uniswap V2 and 0x Protocol, The scope of the agreement will be expanded in the future . At present, only a single transaction is covered MEV The opportunity to , Not including the sandwich deal (Sandwich Trade) Or multiple arbitrage transactions ; Nor does it cover CEX-DEX Interest arbitrage , because CEX There is no public data to capture .

MEV-Explore stay Leaderboard All... Are listed in MEV transaction , Contains the latest MEV transaction 、 lately 90 Sky high Gas fee MEV Transactions and undetermined anomalies MEV transaction .

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7.2 mistX by Alchemist

Alchemist By @thegostep stay 2021 year 2 One sent in the month Twitter At the beginning ,@thegostep It's Ethereum 、Ampleforth One of the core developers of , Also involved in Flashbots.Alchemist It is a completely community driven decentralized organization . So far 5 A core project is under way :Crucible、Copper、mistX、sandwitched Query and Crucible NFT Design.

$MIST yes Alchemist The governance token of , The main functions are Alchemist Raise early-stage R & D funds , And conduct community governance , There is no upper limit on the total amount of tokens , And there is an additional issuance mechanism . Tokens, of which 50% to Alude Reward pool ,25% to MIST Community sign more ,25% to MIST national treasury .

1. mistX

mistX It's a nothing Gas Decentralized exchange of fees , adopt Flashbots Binding transactions , Realize transaction confirmation .mistX As a transaction searcher on the chain ,Flashbots take mistX Directly connected to the miner , Protect the transaction information initiated by users from being published to the public memory pool (mempool), But in the form of bundled transactions Flashbots System . Other transaction searchers cannot preempt 、 Attack the user's transaction , Because bundling transactions are always at the top of the block . Users effectively hide transaction information , Make it invisible to the runner , So as to prevent the transaction from being manipulated , It provides a fair competitive environment for miners to compete for interests , Is the first one that can be used by ordinary users Flashbots Application .

adopt mistX The Ethereum transaction processed does not require any information from the user Gas fee (Transaction Fee, Gas Price All for 0 Ether). When a transaction occurs , The tip will be determined and submitted to the miner as part of the value of the transaction through the smart contract call , Users don't need to make sure they have enough... In their wallet ETH payment Gas cost . If the transaction fails or the user cancels the transaction for any reason , You don't have to pay any Gas fee , Tips given to miners will also be returned .

Every stroke passes mistX Tips paid to miners , Will keep some of them for mistX platform , Used to support Alchemist The ecological system .

The core Crucible NFT and crucible.alchemist.wft Connected on Aludal Reward pool . adopt crucible.wft subscribe MIST-ETH LP signify Alchemists stay You can get rewards when trading . therefore , stay mistX The token trade on $MIST Has a direct impact on the price of . This benefit not only rewards mistX user , And rewarded Alchemist Community and all $MIST holder . It has had a positive impact on Ethereum blockchain , Reduce network congestion , Promote efficiency ; By not including failed transactions in the block , Do not charge for failed transactions Gas fee , To free up block space .

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Example <1>: A user's transaction contains ETH The exchange of (ETH->Token, or, Token->ETH). The miner directly deducts some from the user's transaction , Tip any tokens traded . This function is not only more democratic for miners MEV, It also enables traders to democratize transactions on Ethereum blockchain .

Example <2>: For Ethereum blockchain 12737023 block . There are two labels at the top :“Flashbots” and “Unconventional Ordering”. The first label represents Flahsbots Technology is used to tie several transactions together . The second tag represents the top position of the block and contains both regular transactions and bundled transactions . These bundling transactions bypass Ethereum's public memory pool , Send it directly to the miners , Therefore, these transactions are not in accordance with Gas Price ranking of fees . Users don't have to pay for the market Gas Fees or transaction costs .

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There are... In total in this block 185 A deal , front 8 All transactions are By Flashbots Protected transactions .Flashbots Tie these transactions together , And put them on the top of the block , So there will be no robot rush 、 Sandwich arbitrage and other attacks .

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On the transaction details page , The transaction tag is “Private Transaction”, It means that the transaction will not be published in Ethereum public memory pool before confirmation , But directly to the miners . This allows the transaction to be protected from being caught in the middle , Failed transactions will be returned , Not recorded on the block Send bundled transactions to MEV-Relay,MEV-Relay Send the approved bundle transaction to MEV-Geth The miners on the white list . These bundled transactions must be packaged and confirmed for execution , Or not at all . This means that every transaction in the bundling transaction must pass , Otherwise, no transaction will be included in the block .

The user intends to use take 1 ETH Switch to 1650 VAL, Has successfully executed Not completely free ,mistX Transactions from users , And have included the transaction in the tip to miners in the block to make a profit . The total amount of successful execution of this transaction is about 0.00654 ETH, among 0.0062 ETH Tip and send to miners ,0.0003 ETH Tip to mistX wallet .mistX Tip all miners 5% To enrich Crucible and Aludal Incentive plan . This will help. mistX Users of , and $MIST Token holders and community members .

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Alchemist Developed  Query tool interface , Used for query 、 Analyze whether an account has a history of sandwich attacks , And the amount of profit withdrawn , This helps to emphasize MEV The impact on the individual . at present Only search Uniswap v2 Transactions , The scope of the agreement will be expanded in the future .

7.3 ArcherSwap

ArcherDAO On 2020 year 8 Month launch , Help miners without harming the interests of traders , Get harmless MEV. Third party suppliers (Supplier) Arbitrage is found on the chain 、 Of liquidation opportunities MEV transaction , And given a ArcherDAO;ArcherDAO The transaction will be routed to the miners , Give priority to packaging ; If the arbitrage succeeds in the end , Suppliers and miners to $ARCH Share in the form of governance tokens MEV profits .ArcherDAO Direct cooperation between suppliers and miners , Optimize MEV The interests of all parties in , Avoid the profit waste caused by the competition between arbitragers .

2020 year 10 month 6 Japan ,ArcherDAO Completed by Ascensive Assets The seed round of lead investment .

ArcherDAO On 2021 year 8 Month changed its name to  Eden Network, Its governance token $ARCH Migrate to $EDEN,$EDEN The total supply is 2.5 100 million tokens .

ArcherDAO utilize Flashbots Technology to complete anti MEV The ecology of , And has two anti - MEV Characteristic products :Archer Relay and Archer Swap.

1. Archer Relay

A private transaction node , As a bridge between traders and miners . The trader's trade will pass Archer Relay Route to miners ; After a large transaction, a running back robot is used to generate an automatic rebalancing transaction , At the same market price . Acceptable 、 Coordinate 、 Route all transactions , Coordinate signed transactions to various projects 、 Users and miners .

2. ArcherSwap

ArcherDAO In existing DEX Based on the development of a new DEX, At present, we have not built our own liquidity pool , Allow traders to use Uniswap and SushiSwap AMMs The liquidity of , And start token exchange using a familiar user interface , To provide a better user experience .ArcherSwap And MEV-Geth Client compatible , Users can directly act as Flashbots Transaction searchers in the ecosystem submit transactions . It can prevent robots from running , Avoid sandwich attacks , And for the users who cancel the transaction and fail the transaction, it is zero slip point and zero Gas Cost , Enables the user to set the slip point coefficient to 0%, Avoid price fluctuations that lead to transaction failure, resulting in unnecessary Gas fee ; meanwhile , Miners only meet the conditions set by traders , You will not get a tip until the transaction is executed successfully .

08. EIP-1559 about MEV Influence

2021 year 8 month 5 Japan , Block height 12965000, Ethereum network completed the code named “ London ” Hard fork upgrade .“ London ” The upgrade involves five proposals , It involves Ethereum transactions Gas Cost EIP-1559 Above all .EIP-1559 By Ethereum co-founder Vitalik Buterin and ethhub_io founder Eric Conner Jointly proposed Ethereum Gas Cost improvement proposal , The core idea is , Divide the transaction fee into two parts : Basic costs (base fee) And tips (tip). The basic cost increases with the network demand , namely Block Gas Limit change , When a block Block Gas Limit When the utilization rate of is high , The basic handling fee increases ; contrary , If utilization is low , Lower basic handling charges . And all basic fees will be burned . Tips are used to motivate miners , This is the same as the optimal Gas Fee auction is similar to , Transactions with high tips will be executed by miners first , Only tips were caught by miners .

Simply speaking ,MEV and EIP-1559 The mode of interaction is not clear , But there are a few things we can focus on .

1. MEV Partial transfer of

EIP-1559 In essence, part of the value that miners can extract ( Basic costs ) Transferred to Ethereum , Ethereum originally extracted this value . This has played a positive role in the development of Ethereum itself , Especially Ethereum tokens Ether The value of .

2. Miners on MEV Increase in extraction

EIP-1559 The first significant effect is a sharp drop in miners' income , Because the basic rate cannot be obtained by miners . The miners will go further for MEV Withdraw additional efforts to mitigate the decline in income . On the one hand, it is conducive to MEV Expansion of infrastructure , On the other hand, it was disastrous MEV The prevention and control of is still arduous .

3. The new problem

EIP-1559 May bring new unstable factors and problems , For example, the miners coordinate to reduce the target size of the block to the basic cost of 0 The situation of , So miners can capture all the value , That is, tips . Of course , This requires the private collusion of many miners , Otherwise, for a single miner, this will obviously bring short-term economic losses . It is still too early to analyze and calculate when collusion and such attacks will be profitable , But it still shows that we should pay attention to EIP-1559 Possible new problems .

09.  Other public chains and Layer-2 Medium MEV

9.1 ETH 2.0

ETH 2.0, Also known as Serenity,“ quiet ”, Today's Ethereum system (ETH 1.0) Updated version of , It is also the next stage of Ethereum's transition .ETH 2.0 and ETH 1.0 The biggest difference is the transformation of the consensus system , Simply speaking , Will be made by ETH 1.0 Proof of workload in (POW) The transition to ETH 2.0 Proof of interest in (POS). stay ETH 2.0 in , The producer of the block is at least 32 ETH The verifier of ( node ), Instead of miners .ETH 2.0 There are also multiple stages , The first stage Beacon Chain “ Beacon chain ” Already in 2020 year 12 Monthly online , And more than 500 ten thousand ETH Pledge in the beacon chain , The beacon chain is ETH 2.0 The bottom of the PoS Consensus mechanism . The goal of the next stage is “ Merge ”, The beacon chain and the current ETH 1.0 Chain merging .

After the merger ETH 2.0 Will contain two chains , Beacon chain for the underlying consensus and the old system as the execution engine ETH 1.0 chain . One ETH 2.0 The possible structure of the client is as follows :

 The etheric fang

It's like today in PoW The same is done in Ethereum ,ETH 2.0 Medium ETH 1.0 The client maintains information from its p2p The memory pool received by the network (mempool). The beacon client interacts with it to form ETH 1.0 Blocks in . because ETH 2.0 The transaction sequencing process in will be similar to PoW The transaction sequencing process of Ethereum is the same , So we have reason to think MEV Still exist in ETH 2.0 in . The difference is who has final control over the ranking , stay ETH 2.0 China is the verifier , instead of ETH1.0 Miners in . meanwhile , Due to the large increase of block producers and the uncertainty of block production probability ,ETH 1.0  Miners with high computing power extract most MEV In the case of ETH 2.0 It will never happen again , Put an end to many negative and disastrous MEV situation .

meanwhile ,MEV The economic benefits still exist , Assume that all verifiers have an average chance to participate in the production block , And obtain the maximum production block reward specified in the agreement , And all rewards are equally distributed . according to Flashbots Calculation of , In the current verifier (160k individual ) Below horizontal , We found that MEV You can increase the verifier reward 75.3%, Or offer 12.86% Of APR, instead of 7.35% Non - MEV APR. One conclusion drawn from this is , Higher verifier rewards mean more ETH The holder will be the verifier , This in turn means that ETH 2.0 It will be safer by having more verifiers .

about ETH 2.0 Medium MEV Exploration is still in its infancy , also ETH 2.0 There is a high degree of uncertainty in itself . But to be sure , In today's ETH 2.0 In the structure MEV There is still , And right ETH 2.0 Itself plays a positive role , At the same time ETH 2.0 There may also be new problems in .

9.2 BSC(Binance Smart Chain)

Coin security smart chain (BSC) It is a blockchain fully compatible with Ethereum smart contract , The difference from Ethereum is that it uses proof of interest (POS) The consensus mechanism , And only the top with the most mortgage assets 21 A verifier is qualified to produce a new block .BSC It is a blockchain with highly centralized consensus , The verifier needs more than 1000 Only $million of assets can participate in the production process , And now most verifiers are actually controlled by coin security .

BSC Upper MEV Compared with ETH A lot less , Especially from the producers of new blocks , namely ETH Miners in MEV. The node actually controlled by coin security does not extract MEV, Because they want to ensure relative fairness , A few verifiers who are not actually controlled by Qian an dare not risk losing their neutrality and angering Qian an MEV. stay BSC in , Arbitrage robot , Sandwich trading and other good and bad MEV Still exists , This is due to its memory pool mechanism and ETH Exactly the same . but BSC Medium MEV The scale cannot be estimated now ,BSC There are no plans to launch its MEV Solution .

9.3 Optimism

Optimism Rollup Is the most important of Ethereum Layer-2 One of the expansion schemes .Layer-2 Also known as “ Under the chain ” Solution , Its main purpose is to expand the performance of blockchain , Put the process of running and processing transactions into the non main chain , And finally settle in the main chain .Optimism Rollup Is a compatible EVM Under the chain execution system .

Due to the need to execute the transaction , stay Optimism There is still a problem of transaction order in , stay Layer-2 in , There is a unique called sequencer (Sequencer) Module , Used to generate signed receipts to ensure transaction execution and sequencing . The sequencer will be checked by a group of inspectors , If the sequencer finds malicious behavior , They can submit proof of fraud , Cancel any incorrect transactions , And forcibly confiscate their deposits , So as to cancel the invalid transaction .

To decide who will use the sequencer ,Optimism Rollup Use MEVA(MEV Auction) programme , Select a unique sequencer through the auction process .

Due to the use MEVA,Optimism Eliminated from the original ETH From the miners MEV.

9.4 Arbitrum

Arbitrum from Off Chain Labs Development , It's a compatible EVM Under the chain execution system , It is also the most important part of Ethereum Layer-2 One of the expansion schemes . On the structure that determines the order of transactions Arbitrum The sequencer structure is also used , But with Optimism Of MEVA The difference is ,Arbitrum Use Chainlink Developed FSS(Fair Sequencing Services) The scheme determines the order , To eliminate... From miners MEV.


This paper introduces MEV The content is a phased panoramic Introduction , However, there are still many parts that do not involve , For example, for MEV Detailed calculation of income, etc , Readers interested in this topic can refer to Flashbots My research article . although MEV It is still a very early field , However, we hope that through this article, readers can appreciate the game on and off the chain and the attack and defense drills of countless researchers and builders , This “ Hear thunder in silence ” The thrill and charm of .

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