A note on Flashbots, mev-boost, our (currently) centralized infrastructure, and competition
Flashbots is committed to building an open, permissionless, and transparent MEV ecosystem.
We've been building towards that since day one when we first released mev-geth and embarked on our journey to frontrun the MEV crisis.
We've been building towards that since day one when we first released mev-geth and embarked on our journey to frontrun the MEV crisis.
With our commitments in mind, and the merge on the horizon, we turned to what MEV should look like in proof-of-stake.
In the fall of 2021 mev-boost was ideated and developed in the public with the Ethereum community.
ethresear.ch
In the fall of 2021 mev-boost was ideated and developed in the public with the Ethereum community.
ethresear.ch
After a year of R&D mev-boost shipped and enabled validators of all sizes to outsource their block construction to an open and competitive marketplace of relays and builders.
writings.flashbots.net
writings.flashbots.net
To bootstramp transparency we pushed for an open data API as a core feature of mev-boost relays.
In turn this API has enabled an explosion of community analytics and dashboards illuminating the dark forest 🌲🔦
In turn this API has enabled an explosion of community analytics and dashboards illuminating the dark forest 🌲🔦
To bootstrap competition Flashbots deliberately avoided enshrining itself by not setting a default relay in mev-boost and by open sourcing our relay.
We are thrilled to see this serve as the foundation of a new market.
We are thrilled to see this serve as the foundation of a new market.
That brings us to today.
While mev-boost's markets are growing fast, they are still nascent and require further bootstrapping in many places.
For that reason we run a builder and a relay. These set a high standard for efficiency, reliability, and transparency.
While mev-boost's markets are growing fast, they are still nascent and require further bootstrapping in many places.
For that reason we run a builder and a relay. These set a high standard for efficiency, reliability, and transparency.
Crucially, running this infrastructure also helps us iterate towards the system we ultimately think must exist: a decentralized block building network.
We believe that a decentralized block building network is existential to the mass adoption of Ethereum and other technologies building towards the same vision.
This is the future that we are working towards. We expect it will take years of research, building, and the coordination of many stakeholders to succeed.
Expect more from us soon!
Expect more from us soon!
But there is a serious gap between that future and the present.
We hear you all that having more & more blocks go through our centralized pipes today is problematic.
So, what can we do on top of what we've been doing so far?
We hear you all that having more & more blocks go through our centralized pipes today is problematic.
So, what can we do on top of what we've been doing so far?
In the short term to reduce reliance on Flashbots and supercharge competition we will be open sourcing more of our knowledge and infra in the coming weeks.
We will also submit our builders' blocks to other relays to help them bootstrap adoption.
We are also issuing a grant for the development of a relay monitor, which will help the community impartially evaluate and monitor the performance of relays.
Sneak peek:
sepolia.relay-monitor.pbs.dev
Sneak peek:
sepolia.relay-monitor.pbs.dev
These 3 things should accelerate the on-going maturation of the market as more relays and builders come to market and compete for market share.
At the merge our builder was producing ~80% of mev-boost blocks. Today it produces ~55% and is trending down.
At the merge our builder was producing ~80% of mev-boost blocks. Today it produces ~55% and is trending down.
Further, we will commit additional resources to research ways to limit builder power and centralization, for example by using inclusion lists.
In the medium term, we believe that it's time for mev-boost stewardship to be further distributed and invite you to participate in discussions on how to facilitate that.
Expect a thread in the next day or two to kickstart the conversation!
collective.flashbots.net
Expect a thread in the next day or two to kickstart the conversation!
collective.flashbots.net
In the medium to long term, we believe in base-layer neutrality and will be doing whatever we can, within our constraints, to advocate for that.
paradigm.xyz
paradigm.xyz
To be clear - we are not against taking more drastic measures as the situation requires.
But we believe this multi-step path strikes a good balance between our short-term and long-term goals for the ecosystem.
But we believe this multi-step path strikes a good balance between our short-term and long-term goals for the ecosystem.
This is what we are going to do, but what can you do?
Non-exhaustive:
- Monitor & collect mev-boost data
- Engage in discussions on our forum
- Participate in stewardship of mev-boost
- Apply for a Flashbots research or product grant
- Contribute to our open source repos & docs
Non-exhaustive:
- Monitor & collect mev-boost data
- Engage in discussions on our forum
- Participate in stewardship of mev-boost
- Apply for a Flashbots research or product grant
- Contribute to our open source repos & docs
Most importantly, as before, we don't ask you to trust us, but to watch our actions and our impact in the long run.
Onwards ⚡️
Onwards ⚡️
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