DeFi by Design EP125: Onchain MEV in DeFi Lending Markets Explained
Author: TheRollup
Published: February 13, 2024
A Deep Dive Into Onchain MEV
Listen to our latest
DeFi by Design Podcast
NFL Season is available to trade on Overtime – Sports market AMM built on Thales Market, a Synthetix ecosystem project. Earn your share of 90k $OP, 90k ARB, and 180k $THALES in incentives. Try it 👉🏽 HERE!
AcrossProtocol is a cross-chain bridge for L2s and rollups secured by UMA’s optimistic oracle that prides itself on its speed, security and low fees. Check it 👉🏽 HERE.
High Rollers:
There is > $100M of value being extracted every single year from lending markets by MEV.
This value is shared with Ethereum validators, yet makes a small difference in the staking yield…
In todays pod, we’ll explore how UMA is planning to recapture this value and distribute it to a different set of users.
We discuss how integrating MEV modules, particularly Oval, into different protocols can recapture tons of value. Oval focuses solely on MEV capture, running auctions that allow users to bid to back run lending market Oracle updates and redirect a significant portion of the MEV back to the protocol and Chainlink itself.
UMA’s involvement takes center stage as we highlight its role in facilitating the integration of Oval into existing protocols, such as Aave, in a phased and conservative manner.
We also touch upon revenue distribution models and tokenholder incentives, emphasizing the potential benefits for the loyal holders of UMA, Aave, Compound, and Chainlink.
Finally, towards the end we talk about intents in the cross-chain landscape and where Hart sees this going in the future.
Enjoy!
Cheers,
The Rollup
Download on Spotify
Download on iTunes
Watch on YouTube
You can check Uma Protocol website 👉🏽 Here
🙌 Together with:
Connext – Build Web3 applications that can securely interact with users, tokens, and other applications on any chain – just like on the web. Learn more here.
Cartesi is an application-specific rollup protocol with a Linux runtime. Scaling Computation. Transcending EVM Limitations. Learn more here.
Disclaimer: Please be aware that investing in cryptocurrency and DeFi platforms involves risks like technical glitches and human errors. We may receive commissions for featuring certain projects, which will be clearly noted. Our content is educational only and not financial advice; we are not licensed advisors.
About the author:
We help you explore DeFi onchain w/ foolproof education & relevant research to give you an edge. Focused on L2s. Scaling to mass adoption one block at a time🙏