Manifold Finance Launches Auctions-based MEV Protocol For Validators

Manifold Finance Launches Auctions-based MEV Protocol For Validators

Manifold Finance, a key player in the MEV subsector, has unveiled its latest venture: a new maximal extractable value (MEV) protocol that seeks to redefine ETH staking.

Unlike the prevailing "one winner per slot" model in the Ethereum ecosystem, this new protocol introduces a novel auction system that permits multiple winners for each auction slot. The introduction of this innovative auction system is poised to be a game-changer, setting the stage for advanced applications related to priority-sensitive transactions and multi-slot bidding for block builders, while also prioritizing value creation for validators.

According to Manifold Finance, the new protocol aims to redefine the dynamics of value capture and distribution from within the Ethereum network. Developed collaboratively by pioneers in ETH staking services and Ethereum infrastructure, the MEV Protocol is designed to enhance network security, promote diversity among validators, and maximize value while advancing network decentralization.

"The Ethereum landscape is far from neutral. These “threats” from MEV are not the existential risks that many portray them to be, but rather subtle tactics in an ongoing battle for supremacy," the developers said in a blog post.

At its core, the protocol introduces mevETH, a unique type of Liquid Staking Token (LST) that focuses on optimizing value for validators. A key innovation is the MEV Auction system, offering multiple winners per slot, challenging the traditional one-winner model used by Flashbots. This shift empowers advanced applications like priority-sensitive transactions, multi-slot bidding for block builders, and ERC-20 token restaking.

MEV, or maximal extractable value, represents the additional value that blockchain validators, responsible for creating new blocks on the network, can extract by manipulating the order of transarctions within the blocks they produce. This is accomplished by entities known as block builders on the Ethereum platform, who determine the transaction order and relay it to Ethereum validators.

Since its launch in August, mevETH, associated with the MEV Protocol, has witnessed more than 28,000 ETH being staked and has already started receiving rewards. The platform has also introduced a streamlined process that enables users to deposit ETH and mint mevETH directly through its platform.

Heading this ambitious project is Leo Cheng, co-founder of Cream Finance, with Sam Bacha, the founder of Manifold Finance and a former contributor to Yearn Finance, serving as its chief architect. Notably, Manifold Finance has also enlisted the guidance of prominent figures from the Ethereum community to steer this initiative. Advisors of note include Sam Kazemian, the founder of Frax Finance, and 0xMaki of LayerZero.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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