Cross-Chain Order Flow Auctions – Variant
In 2022, crypto infrastructure advanced significantly. Blockspace is now cheaper, more abundant, and more connected than ever. Zero knowledge technology continues to improve scalability, transaction security, and user privacy. The Ethereum Merge exemplified how strong economic incentives can successfully coordinate major technical upgrades, conducted mid-flight without any negative impact to the end user experience. Amongst this infrastructure innovation, one area I’m particularly excited about is order flow auctions. Order flow auctions (OFAs) are the financial plumbing of the crypto ecosystem: they coordinate diverse sets of stakeholders to route transactions from the point of origin (e.g. a user’s wallet) to final inclusion in the chain. Along the way, inefficiencies are extracted (often called “maximal extracted value” aka MEV). The more complex the routing, typically the more sizable the MEV opportunities. This piece will focus on one particularly emergent category of OFAs: cross-
Cross-Chain Order Flow Auctions – Variant Cross-Chain Order Flow Auctions January 10, 2023 by Alana Levin --> In 2022, crypto infrastructure advanced significantly. Blockspace is now cheaper, more abundant, and more connected than ever. Zero knowledge technology continues to improve scalability, transaction security, and user privacy. The Ethereum Merge exemplified how strong economic incentives can successfully coordinate major technical upgrades, conducted mid-flight without any negative impact to the end user experience. Amongst this infrastructure innovation, one area I’m particularl
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