General
What is a Just in Time (JIT) Liquidity MEV?
Uniswap v3 allows Liquidity Pools (LP’s) to provide concentrated liquidity within smaller price ranges. Comparatively, liquidity in earlier versions of Uniswap were distributed equally along the reserve function. There are sophisticated Keepers that are able to add and remove concentrated liquidity to sandwich trades.
More information can be found here: https://dune.xyz/ChainsightAnalytics/Uniswap-v3-Just-in-Time-(JIT)-Liquidity-MEV
A Priority Gas auction (PGA) is a bidding war on gas such that the user who bids the highest would get their transaction processed by the miner first.
A PGA occurs when two network participants both desire to perform a like-kind transaction. In the event that only one of the transactions can occur, both participants must increase their gas bid to have their transaction chosen by miners. This results in an increase in gas prices for blockchain users. Example transaction: https://etherscan.io/tx/0x2bde6e654eb93c990ae5b50a75ce66ef89ea77fb05836d7f347a8409f141599f
Grim Trigger is a game theoretical approach to eliminate competition in a network. The strategy disincentivizes competition by preventing other network participants from succeeding in a given task. In the case of Keepers, a Grim Trigger occurs when one Keeper bids up the gas price to a level such that no profit could be made off a MEV opportunity. While this does not give the Grim Triggerrer profit, it prevents others from profiting, disincentivizing them from participation. The only winners in this case are miners, who collect on artificially inflated gas prices. Keepers and users alike lose in this scenario. With coordination, the profitable opportunity can be maintained by the Keepers; the byproduct of this is more natural gas pricing, which also benefits users.
While Proof-of-Stake punishes dishonest block producers from altering the ordering of transactions as their rewards would get slashed, it does not remove arbitrage opportunities completely.
Why should I use Rook to trade?
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Where can I find Rook contracts?
Last modified 6mo ago