Eugene Chen joins us to discuss why Solana's local fee markets aren't real. Well, they are real, but they don't yet work as advertised. Eugene is the co-founder of Ellipses Labs, Phoenix Protocol, and Umbra Research and he is one of the sharpest builders in Solana! In this episode, we discuss how Solana transactions work, how to improve Solana's fee markets, MEV on Solana, how apps can accrue their own MEV, Solana's DeFi risk, Phoenix's limit order book and more!

- -

Timestamps

00:00 Introduction

00:56 How Solana Transactions Work

05:56 Solana’s Local Fee Markets Aren't Real

29:53 Access Promo

30:55 DAS Promo

31:52 MEV on Solana

36:59 App-Specific MEV and Value Accrual

41:46 Solana Bots and Toxic MEV

45:27 The Latency vs “Fair” Distribution of MEV Tradeoff

48:41 Solana DeFi Risk and the mSOL depeg

51:18 Why App Developers Should Understand the Infrastructure

55:19 Ellipses Labs, Phoenix’s LOB and Points

01:01:48 Solana’s Identity and Advice for Solana Builders

- -

Access Protocol is the best way to discover premium content from crypto's top publishers and independent creators. Access Protocol has reinvented content monetization, meaning you can access this premium content without endless ads or hard-to-cancel subscriptions.

Access Protocol is crypto-native, built on Solana, and already has 225K users reading content, receiving NFTs and interacting with creators! Use this link to check out Access Protocol today:https://bit.ly/AccessProtocol_Lightspeed

- -

Join us at DAS (Digital Asset Summit) in London this March! DAS is the #1 institutional conference in crypto, hosted by Blockworks. Use the link below to learn more, and use LIGHTSPEED10 to get 10% off your ticket! Sign up now because the price goes up every month. See you there!

Learn more + get your ticket here: https://blockworks.co/event/digital-asset-summit-2024-london/home

- -

Follow Eugen: https://twitter.com/0xShitTrader

Follow Mert: https://twitter.com/0xMert_

Follow Garrett: https://twitter.com/GarrettHarper_

Follow Lightspeed: https://twitter.com/Lightspeedpodhq

Subscribe on YouTube: https://bit.ly/43o3Syk

Subscribe on Apple: https://apple.co/3OhiXgV

Subscribe on Spotify: https://spoti.fi/3OkF7PD

Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/

- -

Resources

Ellipsis Labs

https://twitter.com/ellipsis_labs

https://ellipsislabs.xyz/

Phoenix

https://twitter.com/PhoenixTrade

https://www.phoenix.trade/

Umbra Research

https://www.umbraresearch.xyz/writings

https://twitter.com/UmbraResearch

Solana Fees, Part 1 (Solana Local Fee Markets Aren't Real)

https://www.umbraresearch.xyz/writings

- -

Disclaimers:

Lightspeed was kickstarted by a grant from the Solana Foundation.

Nothing said on Lightspeed is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Mert, Garrett and our guests may hold positions in the companies, funds, or projects discussed.

EP 160: Dana Goodyear - Uncovering Malibu’s mysterious side for her podcast Lost Hills, developing a career in journalism, turning writing into rent-paying, and forming a love for surfing