MEV (Maximal Extractable Value)
MEV represents the extra profit that can be captured by reordering, including, or excluding transactions within a block. In simpler terms, it’s the potential gain a miner or validator might extract by strategically ordering transactions. GOEMON is designed to mitigate the risks associated with MEV by aggregating intents into batches and using intelligent solvers that optimize execution order, thereby reducing opportunities for front-running or other exploitative behaviors.
MEV manipulation Problems
Front-running: Placing a transaction ahead of a pending transaction to profit from the price movement.
Sandwich Attacks: Inserting transactions both before and after a target transaction, exploiting price changes.
Reordering & Insertion: Manipulating the sequence of transactions to capture arbitrage opportunities.
Threat Models
The risks posed by MEV can be classified as follows:
User-Level Risks: Individual users may experience slippage or higher transaction fees as their orders are exploited by adversaries.
Protocol-Level Vulnerabilities: Aggregated order flows or predictable patterns in transaction ordering can expose the protocol to systemic exploitation.
Network-Level Risks: During periods of high volatility or congestion, the probability of MEV exploitation increases, as attackers are incentivized to rearrange transaction sequences for profit.
MEV Protection
To safeguard user transactions, GOEMON employs multiple layers of defense:
Batching & Aggregation: By grouping multiple intents together, the protocol obscures individual transaction details, making it harder for malicious actors to target specific orders.
Solver Optimization: Solvers analyze batches holistically to determine the most efficient execution paths, further reducing the risk of MEV exploitation.
Atomic Execution: Transactions are executed atomically, ensuring that either all actions within a batch are successfully completed, or none are—this minimizes the impact of potential manipulation.
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