Research Summary
The research report discusses the concept of Miner Extractable Value (MEV) and how it is being addressed by different entities in the crypto space. It introduces Skip Protocol, a project that aims to give control over MEV to the community. The report also discusses the concept of sovereign MEV and how it can be achieved using Skip Protocol’s modular tools. It further explains how Osmosis, a decentralized exchange, has implemented a module to capture MEV for its own benefit.
Actionable Insights
- Understanding MEV: MEV is an inherent outcome of distributed and transparent financial rails. Entities along the MEV value chain are incentivized to maximize profit.
- Skip Protocol’s Approach: Skip Protocol is creating a set of modular tools that appchains can implement, giving them full control over the rules around transaction ordering and inclusion.
- Osmosis and MEV: Osmosis, a decentralized exchange, has implemented a module that allows it to be its own arbitrageur and capture MEV for its own benefit.
- Future of MEV: The report suggests that more platforms may adopt similar strategies to capture MEV, leading to a more democratized distribution of MEV.
