thegostep ⚡🤖
May 2nd, 2022

At in Amsterdam, I opened the day by introducing a new framework for thinking about the fast moving MEV industry and how it will evolve in the future. I call this framework the MEV Supply Chain. You can find a recording of this presentation as well as the rest of here (light mode stage, 17 minutes in).

What is the MEV Supply Chain?

The MEV Supply Chain describes the chain of activity which helps users transform intentions into finalized state transitions in the presence of MEV. While the terminology is new, this supply chain actually exists in all blockchains regardless of the MEV mitigation technique or ordering rules they use. In fact, I would go as far as to say it exists in any market for user data, including traditional financial markets. But, this is a topic for a separate discussion. For today, let’s focus on blockchains.

can you spot the sandwich?
can you spot the sandwich?
November 22nd, 2021

Like many others, when I learned that Ken Griffith beat out 17k crypto frens at purchasing the copy of the constitution, I couldn't help but laugh.

The outcome of the ConstitutionDAO was somewhat predictable. With the max bid of the DAO being public information, any interested buyer was aware of the floor price and could make sure to have sufficient capital on hand to win the auction. Meanwhile, the DAO was unable to collect additional capital, even though it was clear it could have with more time.

Ken has made his fortune benefiting from exploiting asymetric information advantages in markets. His company, Citadel Securities, makes money by purchasing the exclusive right to see the state of retail orders before anyone else. Ironic to say the least.

February 17th, 2021

Flashbots is a research and development organization formed to mitigate the negative externalities and existential risks posed by miner-extractable value (MEV) to smart-contract blockchains. We propose a permissionless, transparent, and fair ecosystem for MEV extraction to reinforce the Ethereum ideals.

In this article, we cover the context and motivation for this project. Technical details of our proposed solution can be found on the ETHResearch forum.