flâneur

Derrick Dimeng Cui

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on the atlas — 3

highlights — 7

  • In that case, the relative amount of excess MEV captured by each application is determined by how those applications set their MEV taxes. If the value app_i charges as a MEV tax is given by the function tax_i(priority), then the priority of the winning transaction can be determined by solving for priority in this equation: tax_1(priorityPerGas) + tax_2(priorityPerGas) = total MEV
    Priority Is All You Need
  • However, there is an important caveat. As discussed in the Limitations section, MEV taxes only work if block proposers follow certain rules—what we call “competitive priority ordering”—rather than deviating from those rules in order to maximize their own revenue. Enforcing these rules in a trustless way is an open problem.
    Priority Is All You Need
  • This new fee is paid by the searcher sending the transaction, so it affects the behavior of that searcher. If there is 100 MEV in an opportunity, the winning transaction will now only set a priority fee of 1 ETH, since that will result in a total payment of 100 ETH (1 ETH to the block proposer, and 99 ETH to the smart contract).
    Priority Is All You Need
  • We propose that the smart contract can look at the priority fee of the transaction and charge its own fee as some increasing function of it. For example, the contract might require whoever calls it to transfer applicationPriorityFee = 99 * proposerPriorityFee in ETH to the contract.4
    Priority Is All You Need
  • Suppose a smart contract wants to capture the MEV from any transaction that interacts with it.
    Priority Is All You Need
  • We show how MEV taxes could be used to solve three major problems in MEV research: Decentralized exchange (DEX) routers that optimize the price received by the swapper Automated market makers (AMMs) that minimize the loss-vs-rebalancing (LVR) experienced by liquidity providers Wallets that let their users capture any “backrunning” MEV created by their transactions
    Priority Is All You Need
  • g [at a young age] he’s read everything that he could find about business. The subject that interests him, he’s read newspapers, biographies, trade press. He went over to his grandfather who was a grocer and he read the progressive grocer magazine, and he read
    Curius / Onboarding