all InfoSec news
Strategic Bidding Wars in On-chain Auctions. (arXiv:2312.14510v2 [cs.GT] UPDATED)
cs.CR updates on arXiv.org arxiv.org
The Ethereum block-building process has changed significantly since the
emergence of Proposer-Builder Separation. Validators access blocks through a
marketplace, where block builders bid for the right to construct the block and
earn MEV (Maximal Extractable Value) rewards in an on-chain competition, known
as the MEV-boost auction. While more than 90% of blocks are currently built via
MEV-Boost, trade-offs between builders' strategic behaviors and auction design
remain poorly understood. In this paper we address this gap. We introduce a
game-theoretic model …
access auction block builder builders building competition earn ethereum marketplace mev process rewards strategic value