Flashbots launches MEV-Share to distribute front running profits with Ethereum users
Blockchain
Blockchain research and infrastructure provider Flashbots introduced the beta version of its MEV-Share protocol, aiming to distribute a portion of Maximal Extractable Value profits to Ethereum users.
Incorporated within Flashbots Protect, a remote procedure call (RPC) tool that can be integrated with users’ wallets, the MEV-Share protocol seeks to defend against bots trying to extract profits by front-running user transactions, according to a statement. It does so by giving users control over the execution of their transactions on the Ethereum network. The concept was first introduced by the Flashbots team in February.
MEV is a technique that involves manipulating transaction sequencing to capitalize on profitable on-chain trades, such as arbitrage and front-running of transactions.
Traditionally, profits from MEV are obtained by searchers and block builders on the Ethereum network, who determine transaction order and relay it to Ethereum validators. Users typically lack control over the execution of their transactions, with wallets and decentralized applications (dApps) missing the necessary tools to use MEV for their benefit.
Flashbots MEV profit sharing
The new protocol seeks to change the traditional MEV order flow by placing users, the originators of MEV, in control. With MEV-Share, the team claims to give users the ability to adjust privacy settings and manage order flow sharing, which safeguards against front-running while selectively sharing transaction information with searchers operating MEV bots. As a result, users qualify for “MEV redistribution rewards” while maintaining a fundamental level of privacy.
“Users can now gain access to MEV redistribution while still maintaining a base level of privacy. They can add these protections to their wallet with a few clicks,” a Flashbots spokesperson said in the statement.
By enabling Ethereum users to benefit from MEV profits and become an active part of the transaction supply chain, the Flashbots team further noted it believed this system can offer benefits to searchers, builders and users alike.
The MEV Share protocol is available to all participants in the MEV niche, including users, searchers, builders, wallets and other applications. Following a technical evaluation during the beta phase, Flashbots plans to release the MEV-Share code as open-source in the future.
As a leading software developer and researcher in blockchain arbitrage and infrastructure provision, Flashbots is one of the biggest names in the MEV niche. The project was seeking to raise $50 million at a billion-dollar valuation, The Block reported in January.
