last day, and i saved my favorite topic... becuase this one is about the invisible tax youve probably paid without ever seeing the receipt. MEV.
quick version for anyone new. on transparent chains your pending trade sits in a public mempool before it executes, visible to everyone. bots see your order, buy in front of you, let your trade push the price up, then sell right behind you. your buy got sandwiched, you paid more, the bot pocketed the diffrence... a tax collected by whoever watches the pipe.
heres the thing that makes me genuinely angry about it, this isnt some rare exploit, its INDUSTRIALIZED. entire bot networks doing this millions of times, extracting value from ordinary traders who never even know it happened...
so how does grvt kill it? simple once you see it. sandwich attacks need one ingredient to exist, VISIBILITY of your order before execution. grvt matches orders off-chain in a private orderbook, theres no public mempool, no pending transaction sitting in the open. the bots cant front run what they cant see. validium keeps trade data private, so even after execution your not leaking strategy to whoever's watching...
now my traditional poke at my own enthusiasm. "trust us, our private orderbook is fair" is exactly what a cex says too. the diffrence here is the zero knowledge proofs, every match gets proven valid on ethereum, so privacy doesnt require blind faith. thats the combination that matters, PRIVATE execution, PUBLIC proof...
final question of this whole course, if private orderbooks with zk proofs kill mev this cleanly... why would anyone keep trading on glass box platforms?? habit is the only answer i can come up with. its been a fun five days...
@grvt_io #grvt
quick version for anyone new. on transparent chains your pending trade sits in a public mempool before it executes, visible to everyone. bots see your order, buy in front of you, let your trade push the price up, then sell right behind you. your buy got sandwiched, you paid more, the bot pocketed the diffrence... a tax collected by whoever watches the pipe.
heres the thing that makes me genuinely angry about it, this isnt some rare exploit, its INDUSTRIALIZED. entire bot networks doing this millions of times, extracting value from ordinary traders who never even know it happened...
so how does grvt kill it? simple once you see it. sandwich attacks need one ingredient to exist, VISIBILITY of your order before execution. grvt matches orders off-chain in a private orderbook, theres no public mempool, no pending transaction sitting in the open. the bots cant front run what they cant see. validium keeps trade data private, so even after execution your not leaking strategy to whoever's watching...
now my traditional poke at my own enthusiasm. "trust us, our private orderbook is fair" is exactly what a cex says too. the diffrence here is the zero knowledge proofs, every match gets proven valid on ethereum, so privacy doesnt require blind faith. thats the combination that matters, PRIVATE execution, PUBLIC proof...
final question of this whole course, if private orderbooks with zk proofs kill mev this cleanly... why would anyone keep trading on glass box platforms?? habit is the only answer i can come up with. its been a fun five days...
@grvt_io #grvt