MEV Wiki
  • Introduction
  • Resource List
  • Terms and Concepts
    • DeFi
    • Automated Market Maker
    • Arbitrage
    • Lending Platforms
    • Slippage
    • Liquidations
    • Priority Gas Auctions
    • Transaction Ordering
  • Attack Examples
    • Front-running
    • Sandwich attack
    • Back-running
    • Liquidations
    • Time bandit attack
    • Uncle bandit attack
  • Attempts to trick the bots
    • Salmonella
    • Kattana
    • Other attempts
  • Solutions
    • Front-running as a Service (FaaS) or MEV Auctions (MEVA)
      • Private Transactions
      • BackRunMe by bloXroute
      • Flashbots
      • mistX by alchemist
      • KeeperDAO
      • EDEN Network (ArcherSwap)
      • Optimism
      • MiningDAO
      • BackBone Cabal
    • MEV Minimization
      • Conveyor (Automata Network)
      • SecretSwap (Secret Network)
      • Fair sequencing service (Chainlink)
      • Arbitrum (Offchain Labs)
      • Vega protocol
      • CowSwap
      • Veedo (StarkWare)
      • LibSubmarine
      • Sikka
      • Shutter Network
    • Other solutions
      • B.Protocol
  • Miscellaneous
  • Contributions
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  1. Solutions
  2. Front-running as a Service (FaaS) or MEV Auctions (MEVA)

Optimism

PreviousEDEN Network (ArcherSwap)NextMiningDAO

Last updated 3 years ago

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Optimism

Optimism are the original proposers of MEVA.

MEV Auction (MEVA) is created in which the winner of the auction has the right to reorder submitted transactions and insert their own, as long as they do not delay any specific transaction by more than N blocks.

Implementing the Auction

The auction is able to extract MEV from miners by separating two functions 1) Transaction inclusion; and 2) transaction ordering. In order to implement MEVA roles are defined. Block producers determine transaction inclusion, and Sequencers determine transaction ordering.

Block producers - Transaction Inclusion

Block proposers are most analogous to traditional blockchain miners. Instead of proposing blocks with an ordering, they simply propose a set of transactions to eventually be included before N blocks.

Sequencers - Transaction Ordering

Sequencers are elected by a smart contract managed auction run by the block producers called the MEVA contract. This auction assigns the right to sequence the last N transactions. If, within a timeout the sequencer has not submitted an ordering which is included by block proposers, a new sequencer is elected.

Implementation on Layer 2

It is possible to enshrine this MEVA contract directly on layer 1 (L1) blockchain consensus protocols. However, it is also possible to non-invasively add this mechanism in layer 2 (L2) and use it to manage Optimistic Rollup transactio ordering. In L2, L1 miners are repurposed and utilized as block proposers. MEVA contract is implemented and designated a single sequencer at a time.

Links:

https://optimism.io/
https://ethresear.ch/t/mev-auction-auctioning-transaction-ordering-rights-as-a-solution-to-miner-extractable-value/6788
https://docs.google.com/presentation/d/1RaF1byflrLF3yUjd-5vXDZB1ZIRofVeK3JYVD6NPr30/edit#slide=id.gc9bdacc472_0_96
MEVA on Ethereum