devcon 7 / how much security does your restaking protocol really need
Duration: 00:25:21
Speaker: Tarun Chitra
Type: Talk
Expertise: Expert
Event: Devcon
Date: Nov 2024
Cost of Feudalism: Towards a Theory of MEV
Maximal Extractable Value (MEV) is excess value captured by miners/validator. This excess value often comes from reordering, censoring, or inserting new transactions that allow a miner to front-run users' transactions. Is MEV *always* bad? Can it sometimes lead to good equilibria for users? We modify tools from algorithmic game theory and probability to prove some surprising paradoxes — *some* MEV improves trading efficiency in networks of automated market makers.
The tension between MEV and Censorship Resistance Gadgets
Although fairly unrelated at first glance, MEV is currently *the* bottleneck for a censorship-resistant Ethereum. This talk will first explore why MEV and censorship resistance are fundamentally counterforces. Then, we will dive into how MEV constrains the design space of censorship-resistant gadgets like Inclusion Lists and Concurrent Block Producers. What does the future of censorship resistance look like for Ethereum?
Beyond Multidimensional Fee Markets
We study TFMs in the presence of heterogenous transactions and computational nodes. Our first set of results show that multidim fee markets (such as EIP-4844) fail to achieve good guarantees as heterogeneity increases. We complement this result by introducing the Broker Mechanism, which works in the fully heterogenous setting. This mechanism is suitable as a market for sharding computation, delegating computation to off-chain nodes (prover markets and coprocessors), and allocating preconfs.
Nano-payments on Ethereum
Piotr Janiu of Golem (http://golemproject.net/) presents on Nano-payments on the Ethereum blockchain
A Modest Proposal for Ethereum 2.0
Vitalik Buterin gives his talk titled, "A Modest Proposal for Ethereum 2.0"
ETH is permissionless money
ETH is money! In this talk, we will explore the role of Ethereum's native asset on the base chain, in the L2 ecosystems, and in crypto broadly. We discuss the ETH supply, what it means to be permissionless money, how ETH is being used today, and how it's role can evolve.
Start contributing to economic protocol development
Protocol development needs more economists, yet many potential contributors do not know which problems are important to Ethereum protocol development. This talk bridges the gap for those interested in blockchain research who want to work on impactful problems. The talk will overview different economic research areas at the protocol level. Examples include an economic perspective on consensus systems, transaction fee mechanism design, and economic sides of current EIPs.
Agent-based modeling of Execution Tickets
Execution Tickets are currently debated as one of the most promising approaches to streamline incentives at protocol level. We created a holistic overview of potential mechanism designs and implementing an agent-based model to realistically compare different mechanism designs and identify potential drawbacks early on. The agent-based modeling approach is presented together with the results. In the second part, we will guide through running the simulation in the workshop.
AMMs as Managed, Customized Portfolios
When you provide liquidity to a Uniswap or Balancer pool, what financial product are you actually buying? This talk considers automated market makers from the perspective of liquidity providers. We first mathematically describe the underlying financial derivative that LP positions represent. Then, we show how to use AMMs to construct custom financial derivatives, specified by their payoff function, and discuss implications.
Comparing Slashing Penalties on Proof-of-Stake Networks
With the support of the Ethereum Foundation, we have performed an analysis of slashing penalties on the seventy largest proof-of-stake cryptocurrency networks. Using insights from institutional economics and game theory, we consider variance in slashing penalties in terms of the conditions that trigger slashing, the magnitude of penalties contemplated, and the limited cases where human judgment plays a role in determining such penalties.