Unchained

The Chopping Block: Why the Once-Taboo MEV Is Now a Core Part of Ethereum - Ep. 449

Jan 28, 2023

Phil Daian, co-founder of Flashbots and a leading voice in MEV research, dives into the intricate world of maximal extractable value in this captivating discussion. He draws parallels between MEV and 'Alice in Wonderland,' detailing its emergence and the birth of Flashbots. The conversation explores ethical implications, including the push for fair transaction ordering and debates on whether MEV should be accepted. Phil also shares insights on compliance with sanctions and the future of decentralized systems, making for a thought-provoking listen.

01:32:43

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Episode guests

Phil Daian

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Episode notes

Intro

4min

The Evolution of Miner Extractable Value in Ethereum

24min

Exploring Off-Chain MEV Dynamics

12min

The Complex Intersection of AI Fairness and Cryptocurrency

2min

Navigating MEV and Transaction Dynamics in Ethereum

10min

Navigating the Complexities of Determinism and Fairness in Financial Systems

2min

Exploring Auction Design and Its Impact on Cryptocurrency Dynamics

3min

Navigating Ethereum's MEV Landscape

25min

Navigating Market Ethics in Finance

12min

Welcome to “The Chopping Block!” – where crypto insiders Haseeb Qureshi, Tom Schmidt, and Tarun Chitra chop it up about the latest news. This week, Flashbots co-founder Phil Daian joins the show to go deep on what maximal extractable value (MEV) means and how it’s shaping the Ethereum ecosystem.

Show highlights:

how Phil started working in MEV and why he believes it resembles 'Alice in Wonderland'
Phil's definition of MEV and when he realized this was an actual problem
how Flashbots was born
the story of how Vitalik didn't care about sandwich attacks at the time Uniswap was released
whether it's possible to minimize MEV via more competition
the never-ending debate about whether MEV should be accepted
why Tarun thinks the concept of fair ordering is against nature
how Bitcoin uses social norms to solve its weaknesses
how Google is being called out in court for creating auction to front run its customers
how Flashbots worked prior to and after Ethereum's Merge
why Flashbots complies with OFAC sanctions
what is the Suave project and how it aims to decentralize Flashbots
what the future of MEV looks like