Agenda ROP-5 Meeting #1

• ROP-5: The state of the Ethereum supply network by Thomas and Davide
  • Quick presentation of the context, scope and objective
• Introduction round:
  • Name, occupation
  • MEV/Supply network projects you have worked on
  • Ideas/projects/contributions you’re interested in
  • Time commitment & resources
• Open discussion
• More specific ideas, converging on projects, working groups

Presentation by Thomas and Davide

https://docs.google.com/presentation/d/1S4wt6JlBdIFpUIcfjpdgQGpL7qF3EWH0m7IfSUsvH8s/edit

Interest in the room

• Paths to enshrining PBS by learning more about the health of the supply network ⇒ Minimal spec by the end that we can iterate on

• Data to support theoretical research on auction design

• MEV quantification towards designing auctions and defeating ROP-0: Timing games in Proof-of-Stake

• Data analytics for MEV relays and MEV landscape

• Learn more about the network

• Maybe more work following the Rollup-Relay? ;)

  Rollup-relay - HackMD

• Continue to provide more services and monitoring of the network, including validators who have their protocol duties but also engage in other things with MEV

• Mempool data analytics to support research

  • Order flow auctions e.g WalletBoost

  • MEV and account abstraction!

    4337 mev supply chain - HackMD

Open discussion

• What are projects we are interested in?
  • A model for CEX-DEX arbitrage and how this affects latency
  • Linking data from EigenPhi (seen after inclusion) with data from mempool monitoring (seen before inclusion)
  • Removing reliance on relays, which have operator risk, vertical integration with builders and searchers ⇒ Instead, use attesters as the relayers
    • Health of supply network can also be self-correcting: there are lots of value at stake, so there is an incentive for the network to be run efficiently
    • But today, there are actors somewhat outside of the governance process which have outsized influence over the network
  • What is the actual potential-MEV? Our measure of MEV for the attack last Monday would have said, there is a few $ to pick up by sandwichers, but it turns out, there is actually 20M $ to be picked up if atomicity can be broken
    • How can we protect atomicity with 4337? Can the bundles be made with validity proofs?
    • Was there a need to review how metrics are computed in light of the network performance post-the attack.
  • Mempool data
    • Study censorship, exclusive order flow
  • OFAs, how do they change validator economics, do they lower security because the APY goes down?
    • But users also need to entice the validators to include their transactions
  • Transaction ordering and auctions, can layer 2’s experiment?
    • You can do the timing-based ordering for transactions, or approaches that look more like FBAs

Paths forward

• Enshrined PBS