Hi everyone, it's been a while! Here is a double-edition of our latest transparency report. As you can imagine, we've been busy.
Writings from the Flashbots team.Filter:
A step-by-step walkthrough of how to add a new MEV inspector using a recently added cryptopunk snipers inspector as an example.
Central to the security of Ethereum is that every miner, and soon validator, can produce the most profitable block possible. Why is this? Why has Flashbots made it a goal to democratize access to the most profitable blocks? How are we doing so? This blog post answers these questions and more.
Flashbots has been critical to leveling the MEV playing field on Proof-of-Work (PoW) Ethereum (eth1), and aims to bring the same benefits to Proof-of-Stake (PoS) Ethereum (eth2). The adoption of Flashbots involves two distinct parties, block producers, and MEV searchers. In Ethereum, over 90% of miners have adopted Flashbots; however, as we approach eth2 and the transition to PoS, adoption will reset to 0. As such, for the health of the Ethereum ecosystem, it is imperative that validators also adopt an MEV solution for Ethereum post-merge. To assist in this adoption, we are pleased to announce the Flashbots Eth2 Working Group.
Today Flashbots and our community are excited to launch a public beta of Flashbots Protect, a new product line focused on allowing everyday users and developers to easily submit transactions to Flashbots.
Flashbots’ last two months have been packed.
The beating heart of every blockchain is how space is allocated within a block. In less than 24 hours, Ethereum will undergo a historic change to how blockspace is allocated as transaction inclusion rules drastically change with the activation of EIP-1559. However, EIP-1559 does not affect miners’ ability to reorder, insert, or censor transactions, and as such it largely does not have an impact on MEV (Maximal Extractable Value).
There has been a lot of discussion in the Ethereum community recently about chain-reorgs-as-a-service, and how it relates to MEV, the ETH2 merge, and other important ecosystem developments. In this post, we will provide a high-level overview of why Flashbots does not support reorg games, why we believe reorg games are a net-negative for all actors in the space (including miners!), and how the unique nature of the Flashbots organization is set up to respond to this and future political and technical challenges.
In May and June 2021 Flashbots strengthened and moved forward our network, successfully releasing v0.2 and with it improved auction pricing as well as bundle merging.
April 2021 was a month of tremendous adoption, experimentation and learning from the community for Flashbots.