Guests Phil Daian and Andrew Miller from Flashbots discuss their new platform Suave, which aims to solve the MEV problem in Ethereum. They explore the importance of decentralization, flashbots' role in protecting Ethereum, and the relationship between MEV and privacy technologies. They also discuss the functionalities of Suave, decentralized block building, and the benefits of privacy in a Suave world.
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Quick takeaways
SWAV is a platform and set of tools designed to solve MEV (Miner Extractable Value) problems in a generalized form.
SWAV focuses on coordinating the present state rather than long-term storage of assets and aims to achieve a fair and decentralized platform for value expression.
SWAV introduces a decentralized block building approach, splitting the process into modular activities and maximizing participation.
SWAV serves as a flexible platform for building coordinated applications that require decentralized coordination.
Deep dives
SWAV: A Platform for MEV Time Applications
SWAV is a platform and set of tools designed to solve MEV (Miner Extractable Value) problems in a generalized form. It allows for the development of MEV time applications that leverage privacy, decentralized coordination, and credible computation. SWAV offers a private mempool where users can submit transactions and intents, potentially optimizing matching and reducing gas fees. It provides a programmable encrypted mempool that preserves user capital and improves transaction execution. SWAV is not limited to a specific blockchain and can bridge with existing blockchains like Ethereum. It also functions as a decentralized block builder, enabling modular activities and increasing participation in the block building process. By decentralizing the process of building blocks and coordinating transactions, SWAV aims to solve MEV issues and achieve a fair and decentralized platform for value expression.
SWAV: A New Paradigm for Coordinating Present State
SWAV is a platform that focuses on coordinating the present state rather than long-term storage of assets. It offers a specialized blockchain, SWAV chain, that enables consensus and runs smart contracts called MEVum. SWAV chain leverages trusted hardware enclaves for privacy and computation, ensuring credible execution. SWAV aims to provide a credible, private, and efficient alternative to existing options, such as centralized servers or committees, for coordinating conflicting preferences and resolving disputes. It supports the concept of intense, glorified limit orders, and offers tools for generating transactions based on private bids and running functions on submitted transactions. SWAV can function as a decentralized block builder, merging bundles of transactions and involving a wide range of participants in the process. Ultimately, SWAV strives to optimize matching, improve execution quality, and maintain privacy and credibility in MEV time applications.
SWAV: Redefining the Block Builder and Coordination Process
SWAV introduces a decentralized block building approach, splitting the process into modular activities and maximizing participation. It establishes a platform for writing smart contract rules that govern the merging and processing of transaction bundles. SWAV's smart contracts, built on SWAV chain or other blockchains, enable credible computation, privacy, and coordination of preferences. The platform facilitates the creation of a private mempool, where transactions, intents, and intense-based applications can be submitted, optimizing matching and execution quality. SWAV's decentralized block building process eliminates the need for centralized servers and allows for direct participation from a diverse range of users. It aims to achieve efficient conflict resolution, enable private coordination, and maintain a fair and decentralized system for MEV applications.
SWAV: A Flexible Platform for Coordinated Applications
SWAV serves as a flexible platform for building coordinated applications that require decentralized coordination. It operates as a blockchain, offering credible computation and privacy through trusted hardware enclaves. SWAV's smart contracts, running on SWAV chain or other compatible blockchains, provide a programmable encrypted mempool that preserves user privacy and capital. The platform allows for the creation of MEV time applications, leveraging a decentralized block building process. Users can generate transactions and participate in the coordination of conflicting preferences, relying on SWAV's mechanisms to ensure fairness and privacy. SWAV's modular activities enable efficient matching and execution, and its flexible approach allows for integration with existing blockchains. SWAV's goal is to enable a decentralized, trustworthy, and efficient system for value expression and coordination.
Swav enables decentralized block building and addresses MEV
Swav aims to address the issues of MEV (Miner Extractable Value) and enable decentralized block building. It provides a platform that separates the tasks of computation and policy, allowing users to execute private and customized applications. By offering privacy solutions and a new programming model, Swav aims to prevent the centralization of MEV extractors and maintain the decentralization of blockchains. The goal is to create a more efficient and fair market structure, where users can retain the value of their data and transactions, ultimately leading to a more decentralized and user-oriented crypto ecosystem.
The importance of decentralization and coordination in Swav
Swav aims to bolster the decentralization efforts of blockchain platforms like Ethereum and layer twos. By providing a decentralized block building solution, Swav helps maintain the decentralization and trust in these systems, mitigating the centralization pressure that often arises. Additionally, Swav offers a way to abstract and unify different layers and chains, allowing for better coordination and liquidity across the crypto ecosystem. This not only benefits existing chains like Ethereum, but also provides options for other layer ones and layer twos to enhance their decentralization and expand their network effects.
The potential impact of Swav beyond crypto
While initially focused on addressing the issues within the crypto industry, Swav's vision extends beyond crypto. The coordination problems and inefficiencies that Swav tackles are prevalent in various sectors, such as finance, ticket sales, and online marketplaces. By solving these problems through decentralization and innovative economic mechanisms, Swav offers the potential to export its solutions to the broader world. It aims to provide alternatives to centralized systems and institutions, enabling more efficient coordination, fairer market structures, and improved user experiences outside the realm of crypto.
Phil Daian is a crypto-economic researcher! Phil is the lead author behind the landmark paper, “Flash Boys 2.0,” which introduced and defined the MEV problem in the Ethereum landscape, over 4 years ago. He is the cofounder of FlashBots, which is a research and dev organization with the mission of mitigating the negative externalities of MEV.
Andrew Miller is an Associate Professor at the University of Illinois, SGX Bull, and visiting researcher at Flashbots, and big believer in cypherpunk values through crypto-economic mechanisms.
Have you ever heard of Flashbots? Flashbots is the silent protector of Ethereum, a shield against the forces of centralization that silently sneak into our cryptosystems and turn them into TradFi. It’s one of the unsung heroes of crypto.
The guests we have on today are from Flashbots, Phil Daian, and Andrew Miller. They believe the biggest centralization threats in crypto still lie ahead. And they’ve got a new platform that’s being built to defend against them. It’s called “Suave”, and we’ve been hearing a lot about it recently - “Solving MEV” - “Decentralizing block building” - but going into this episode, we weren’t sure exactly what it was. We found out during this episode.
