devcon 7 / is multi block mev a thing insights from 2 years of mev boost data
Duration: 00:18:05
Speaker: Pascal Stichler
Type: Lightning Talk
Expertise: Intermediate
Event: Devcon
Date: Nov 2024
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.
A Modest Proposal for Ethereum 2.0
Vitalik Buterin gives his talk titled, "A Modest Proposal for Ethereum 2.0"
Latency Advantage in CEX-DEX Arbitrage
We study the effects of having latency advantage in the CEX-DEX arbitrage in the first-come first-serve transaction ordering policies. We search for optimal strategies for a trader that owns such advantage. To find optimal strategies, we simulate price changes on CEX using real data and assume DEX price does not change in the latency advantage interval. We find that optimal strategy can even be to trade right away as soon as the price difference crosses a threshold where trading is profitable
Next Generation AMMs - Eliminating LVR
Loss-Versus-Rebalancing (LVR) is the most significant form of MEV, yet it has the fewest solutions addressing it. LVR remains a significant challenge for AMMs. This session delves into a comprehensive analysis of how CoW AMM addresses the problem of LVR through its unique batch mechanism. Drawing from 9 months of empirical data, the talk will explore the effectiveness of CoW AMM in mitigating LVR and offer insights into the impact of LVR resistant design on trading outcomes and market efficiency
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.
Practical endgame on issuance policy
A practical endgame on issuance policy stops the growth in stake while guaranteeing proper consensus incentives and positive regular rewards to solo stakers. Viable reward curves for this endgame are presented. Motivations, impacts and potential downsides of an issuance reduction are in focus. A tangible framework is also introduced: never exceed an issuance rate of 0.5%. A stringent cap on issuance caps the inflation rate, solidifying ETH as trustless sound money with robust economic security.
Can we fix MEV?
MEV is problematic today. The MEV supply chain puts centralizing pressure on Ethereum. There’s also an allocation problem; proposers (not apps or users) earn nearly all MEV, though they’re merely protocol agents. Numerous proposed solutions address this (ePBS, EAs, ETs, FOCIL, BRAID...), each with tradeoffs and assumptions about whether MEV is intrinsic to blockchains or extrinsic & preventable. Research is challenging to enter w/o continuous engagement. I’ll provide an overview of the research.
Sybil-Proof Mechanisms
I discuss a fundamental impossibility result on proposer selection mechanisms: If different actors can generate different value from block proposal (or sequencing) rights, the only sybil-proof and incentive compatible way of assigning proposal rights is through an (arguably centralizing) auction. In other words, any proposer selection mechanism can at most satisfy two out of three fundamental requirements: incentive compatibility, sybil-resistance and decentralization.
Nano-payments on Ethereum
Piotr Janiu of Golem (http://golemproject.net/) presents on Nano-payments on the Ethereum blockchain
The CBC Casper Roadmap
The CBC Casper roadmap is a plan to implement Proof-of-Stake and Sharding for Ethereum using “correct-by-construction” (CBC) software design methodology. This talk will share new CBC Casper research, including specifications for light clients, liveness and sharding. It will include updates on formal verification and engineering efforts, and a roadmap for (eventual) release.