3 - 5 minute read
More than 30 Ethereum projects have come together to launch MEV Blocker RPC, a tool designed to protect users from various types of Maximal Extractable Value (MEV) attacks, including front-running and sandwich attacks. The initiative brings together prominent names in the industry, such as CoW Swap, Beaver Build, Agnostic Relayer, EigenPhi, Builder0x69, ZeroMEV, Balancer, Gelato, Gnosis DAO, bloXroute, 1inch, Safe, Paraswap, and more.
MEV refers to the maximum potential value that can be extracted from a blockchain transaction, including arbitrage and front-running of user transactions. Usually, block builders on Ethereum capture the profits from MEV by determining the order of transactions and relaying it to Ethereum validators. Meanwhile, searchers identify opportunities for MEV from transactions and support block builders in creating an order flow.
MEV Blocker RPC routes user transactions to a network of “searchers” instead of the public memory pool. These searchers bid for the right to backrun transactions while shielding users from front-running and sandwich attacks. The searchers create a backrun bundle, which is then merged with the original signature by the RPC and relayed to block builders and validators for execution on the network.
What Problem Does MEV Blocker RPC Solve?
MEV creates difficult economic conditions for on-chain users. Users are at risk of receiving unfavorable prices on trades, NFT purchases, ENS name registrations, and liquidity provisions due to MEV bot hijacking. MEV Blocker RPC aims to address this growing problem by offering a solution for everyone.
“At CoW Swap it’s our mission to put the user first, while CoW Swap offers the best protection for any on-chain swaps, there are also other transactions that suffer from MEV attacks. With MEVblocker we are offering a solution for everyone,” said Anna George, CEO of CoW Protocol.
MEV Blocker RPC returns at least 90% of the profits from winning bids to users and allocates 10% to validators as a reward. As a result, users are protected from malicious MEV attacks and may also profit from the arbitrage opportunities their transactions create – an advantage previously reserved for advanced Ethereum users.
What Does This Mean for Traders?
MEV Blocker RPC is set to compete with existing RPC tools like Infura, Ankr, and Alchemy, as well as the in-development Flashbots’ MEV share, which also aims to protect users from MEV and share revenue with them. This collaboration between more than 30 Ethereum projects is a significant step towards addressing the growing problem of MEV in the Ethereum ecosystem. Traders may benefit from using MEV Blocker RPC as it offers protection from MEV attacks and provides an opportunity to profit from arbitrage opportunities.
MEV Blocker RPC is a collaborative effort by more than 30 Ethereum projects to address the growing problem of MEV in the Ethereum ecosystem. It offers protection from MEV attacks and provides an opportunity for users to profit from arbitrage opportunities. As it competes with existing RPC tools and the in-development Flashbots’ MEV share, traders may benefit from considering MEV Blocker RPC for their transactions.