OpenMEV Platform Documentation

  • Strategy and Implementation details
  • End User information
  • Help Desk and Troubleshooting
  • Searcher Integration
  • Formulas and Proofs
  • Technical: Technical overview on specific category

SushiSwap

The SushiSwap integration provides a service that realizes profit by transaction batching for the purposes of arbitrage by controlling transaction ordering.

Right now every user sends a transaction directly to the network mempool and thus give away the arbitrage, front-running, back-running opportunities to miners(or random bots).

OpenMEV provides a crediabily netural platform that enables aggregation of transactions (batching) for the purposes of extracting MEV profits and returning them back to the traders.

What is credible neutrality?

"...that it is not just neutrality that is required here, it is credible neutrality. That is, it is not just enough for a mechanism to not be designed to favor specific people or outcomes over others; it’s also crucially important for a mechanism to be able to convince a large and diverse group of people that the mechanism at least makes that basic effort to be fair."

This ethos is at the heart of OpenMEV. Part of establishing credible neutrality is having a clear and comprehensive rulebook that regulates off-chain behavior and activities. Our assumption concerning governance is that methods and processes that work in legacy markets may not be applicable in adversarial environments such as permissionless blockchains.

Discuss this and more on our discourse forums

What is MEV

Maximal Exhaustive/Extracted Value

MEV is that which can be extracted from a blockchain by any agent without special permissions. Considering this permissionless nature, any agent with transaction ordering rights will be in a privileged position to perform the extraction. In Proof of Work blockchains, it is miners who determine transaction ordering within a block, hence the usage of "miner" term. In practice, bot operators seek to extract MEV by either paying high fees to increase the likelihood that their transactions are mined, or by fine-tuning their gas price choices in order to “time” their transactions right.

General Considerations

Note, that 'MEV' is a theoretical quantity that can only be approached asymptotically. Unforseen extraction methods can and will be devised. For example, every new DeFi hack is a type of MEV extraction event.

In systems such as Flashbots there’s two classes of actors in their system Searchers and Miners. We use the generic label Miner / Block Producer for actors that bear the role of transaction inclusion and ordering.

Searchers are any non-privileged actors aiming to profit from these opportunities. Miners can (and do) also act as searchers.