Ethereum MEV, many call it Miner Extractable Value...but this isn’t going away with the
switch to proof of stake, when the Ether Miners go bye-bye.
That is why many call it to this day..MEV, Maximum Extractable Value, as the proof of
stake validators will be looking to extract value, just like the Miners.
That is why some of the biggest entities in crypto are looking to solve the MEV crisis….TODAY.
So are you ready for this channel’s MEV?
Maximum Ether Video?
Well you don’t have a choice, because it’s time for Chico Crypto!
How do I explain how important MEV is going to become??
Well many of the top Ethereum researchers, and developers got together last Friday for
a very important Summit.
Scaling Ethereum...and Ethereum Foundation researcher, Peter McCorry...spoke, on just
that scaling Ethereum, including going over many of the rollup solutions, arbitrum, optimism,
zk and more….
But this is what he had to say, regarding the sequencer, of which all rollups
will rely.
There is a big MEV problem...we will hear a
lot
about it over the coming weeks.
He gives an example of a Uniswap sandwich trade through the sequencer, and then highlights
flashbots as a potential solution…..
Obviously, a narrative is being created by some of the top ethereum researchers...and
this narrative ties into scaling Ethereum.
So let us focus on the coins, who are attempting to solve this problem.
I’ve covered flashbots, it’s ties to alchemist coin….now it’s time to look at the others.
And a Fiona Kobayashi whipped up a great MEV alignment summary, grouping together all that
is working on this crisis, into categories.
As we can see, in the neutral good category, there are two MEV solutions we’ve covered
and know of.
Flashbots and Chainlink FSS.
But down in Neutral, Neutral...there are 3 more MEV based projects with coins.
KeeperDAO, StakeDAO & ArcherDAO.
And for the rest of the episode, we are going to cover all 3.
Starting from the highest market cap, to the lowest.
So let us begin, with the highest CAP.
KeeperDAO.
Keeper, as of yesterday, was just under 200 million dollar market cap and ranked #251
on Coingecko.
So what is Keeper?
KeeperDAO is a protocol that economically incentivizes pooled participation in keeper
strategies which manage liquidations, rebalances and arbitrages on DeFi applications spanning
trading, exchange, and lending.
The Pools of Keeperdao, have strategies which are managed by the distributed keepers, aka
keeper bots.
Aka arbitrage bots.
The goal of the DAO, is to align the goals and maximize the profits of those who contribute
to the DAO, rather than that value being captured by the miners.
Liquidity contributed through Users, and strategies contributed through the keepers.
Let’s align the goals of each to maximize profits.
Regarding MEV, the big development from KeeperDAO is their hiding book.
This went live at the beginning of February, but from the Github they describe it.
They say “The HidingBook is a backend infrastructure component of the Hiding Game which hosts hidden
orders only fillable by KeeperDAO keepers.
Integrating a client with the HidingBook enables the client's users to coordinate with KeeperDAO
keepers for the capture of MEV (miner extractable value).
This is a win-win because both users and keepers are working together to maximize profit generation
from a trade the user was going to perform anyways.
The profits generated are returned back to the user in $ROOK tokens.
The underlying profit token is deposited into a pool controlled by $ROOK holders.
Sound awesome but what exactly is this?
Well KeeperDAO also put out a blog on this, during go live “Let the games begin” and
said this “The HidingBook is a backend infrastructure component of the Hiding Game’s DEX trading
feature.
It is a virtual mempool which enables users and keepers to coordinate, capture, and distribute
MEV.”
It’s a virtual memepool.
An alternative memepool….So.
The next question, is this stepping on the toes of Flashbot’s MEV-GETH, their alternative
memepool with direct connections to miners?
Well KeeperDAO tweeted April 12th, talking about MEV and their hiding book.
They said this in the thread “But...MEV is inevitable.
And miners will never be removed from the equation.
Hence why we need FlashBots, in order to eliminate information asymmetry, and democratize extraction.
Hats off to the awesome team, specifically naming Tina Zhen, a known alchemist.
Then they said “ KeeperDAO is not a competitor to FlashBots, and in fact, potential integration
is an ongoing discussion.”
Very nice!!!
KeeperDAO is looking tasty, especially with the potential Flashbots integrations.
But what about the 2nd highest MEV coin, based on marketcap!?
That is StakeDao who is sitting at a kinder, just over 42 million dollar market cap as
of yesterday.
StakeDAO is a piece of Stake Capital, their revenue sharing DAO which tokenizes their
services, and distributes the value back to the holders.
Their application which houses their services just went into version 2 and as we can see
TVL was over 121 million as of yesterday.
Not bad for just a 42 million dollar market cap.
But who is StakeDAO as an MEV coin?
What are they doing in this sector??
Well we don’t necessarily know...yet.
I have a screen capture, of stakedao when it was in v1 & it said the coming strategies
they were implementing.
As we can see one was Flash Boys 2.0...and guess who posted this screen capture?
Julien Bouteloup of Stake Capital….he said, Flashboys 2.0 was coming with version 2….
If we go to their strategies, in APP, it doesn’t seem this has been implemented yet…..so
the question is when???
Well Julien Let us know 4 days ago….a mining missiles asked him “when will the "soon"
v1 strategies be ready?V2 looks nice but still no sign of them”
Not live for retails... but been working for months...maybe coming in weeks?
Possibly their flashboys 2.0 arb strategies, coming in weeks?
So is this a competitor to flashbots?
Well the only thing I could find in relation to flashbots and Stakedao, was Julien commenting
on a Tina Zhen tweet, about her escapades with the flashgirls...of which Julien tweeted
interesting with a smirk….and then tweeted flashboys & flashgirls?
Tina replied “parasitic hack ventures welcome” of which Julien replied I see, and a disgusted
face…
Sooo, I can’t tell what is going on...are there connections or isn’t there?
If I had to guess as of right now, no...but there may be down the road.
And the final MEV coin, the smallest Cap, is ArcherDAO...which is sitting at just a
22 million dollar market cap.
Now, Archer has direct connections to StakeDAO as if you go to StakeDAO’s partner page,
they are within their ecosystem.
So what exactly is ArcherDAO?
Well it’s a protocol for MEV extraction, just like flashbots...and you can see the
call to Miners right on their website.
Then going into their github, they forked flashbots bundles...so it seems Archer just
might be a competitor to Flashbots & that is why I don’t necessarily think Stakedao,
wil be involved, they chose archer as their partner...not flashbots.
So my friends, MEV is a big freaking crisis, that many entities are looking to solve.
Chainlink and it’s FSS a neutral good, Flashbots who has ties to Uniswap and Paradigm are also
a neutral good.
Which is confirmed by Hayden tweeting this in November.
“Phil is one of the smartest people in crypto and consistently uses his powers to improve
the world.
MEV poses an existential risk to the goals of decentralized finance.
Flashbots mission to open source and democratize MEV is incredibly important and helps me sleep
at night...:”
If you can’t see Flashbots integration with Uniswap v3….I don’t know what to tell
you….but Flashbots and Chainlink FSS, isn’t all there is.
KeeperDAO, with possible flashbots integration down the line...and the lowercaps, StakeDAO
and Archer who have partnered to provide their own solutions, which as of now are in competition
with flashbots.
First tuber to cover the landscape of MEV...I wonder when the others will?
Give it a week or two.
Cheers I’ll see you next time!