Podcast Summary
In this podcast, Zano, a crypto enthusiast, and Zano Sherwani, co-founders of Jito, discuss the state of Miner Extractable Value (MEV) on Solana, the challenges of MEV in the crypto market, and the potential solutions. They also touch on the role of Telegram bots in private order flow and the implications of the Access Protocol on Solana for the subscription industry.
Key Takeaways
Understanding MEV on Solana
- State of MEV: Solana’s MEV involves private ME pools where transactions are aggregated and exploited for value. The solution is moving towards a Private Block Space (PBS) system, where a separate entity builds the entire block.
- Benefits of PBS: On Ethereum, PBS offloads the task of building profitable blocks to a specialized entity, separating it from proposing and validating blocks. This could be a potential solution for Solana.
Role of Private Order Flow and Telegram Bots
- Private Order Flow: This allows users to choose builders they trust to avoid being sandwiched or having their order flow cut. However, it has pros and cons in addressing the issue of private ME pools and toxic ME.
- Telegram Bots: These bots have become a significant driver of value for builders on Ethereum, offering arbitrage opportunities between exchanges and partnerships for private order flow.
Implications of Access Protocol on Solana
- Addressing Fragmentation: Fragmentation is a significant problem for Ethereum and the subscription industry. Access Protocol on Solana aims to solve this by offering a new way to consume content through staking.
Challenges and Solutions in the Crypto Market
- Censorship Issue: The end state of MEV on Solana may involve a few sophisticated builders who build 100% of the blocks, but the issue of censorship needs to be addressed.
- Restaking: The concept of Restaking, or modular consensus, is being explored on Solana, with multiple teams attempting to implement it. This could be a potential solution to the censorship issue.
Role of Auctions in Crypto Market
- Just-in-Time Auctions: These auctions, where bids are made for each block or slot, are more efficient in pricing as they can take into account the current state of the world and price bids accordingly.
- Block Space Futures Market Auctions: In these auctions, block space is purchased ahead of time. Although harder to price, it may be possible to give rough estimates for shorter timeframes.
Sentiment Analysis
- Bullish: The podcast presents a bullish sentiment towards the potential of Solana’s MEV infrastructure, the role of private order flow and Telegram bots in the crypto market, and the implications of the Access Protocol on Solana for the subscription industry. The discussion on the benefits of PBS on Ethereum and the potential for its application on Solana also reflects optimism.
- Bearish: The bearish sentiment is evident in the discussion on the challenges of MEV in the crypto market, particularly the issue of censorship and the problem of fragmentation in Ethereum and the subscription industry.
- Neutral: The neutral sentiment is reflected in the discussion on the role of auctions in the crypto market, acknowledging both the efficiency of just-in-time auctions and the potential of block space futures market auctions.
