MEV & Staking - MegaETH sequencer auctions redistribute 90% of MEV to token stakers [1] - At 50% staked, $108 million annual MEV translates to 216% APY from real economic activity [1] Market Opportunity - Ethereum L1 generates $20 million monthly MEV, Arbitrum $5 million [1] - MegaETH's sub-millisecond blocks create more arb opportunities than both Ethereum and Arbitrum [1] - A productive asset yielding 20%+ from transaction ordering is mispriced at $1 billion FDV [1] Auction Details - Public auction starts October 27 at $1 billion valuation [1] Token Utility - Every other L2 token is just governance, implying MegaETH token has superior utility [1]

Technology & Innovation - Batched Threshold Encryption (BTE) technology has the potential to redefine fairness in DeFi by mitigating frontrunning and sandwich attacks, which are central to extractive MEV [1] - The BEAST-MEV upgrade significantly reduces decryption times to under 1 second for approximately 500 transactions [2] - The upgrade requires only 6KB communication and features silent, non-interactive setup, marking a substantial improvement over previous models [2] DeFi Market Impact - BTE could be a breakthrough for making DeFi fair, private, and trustless [3]

MEV (Miner Extractable Value) & Transparency - MEV thrives on mempool transparency, creating opportunities for value extraction [1] - Threshold encryption aims to counter MEV by encrypting transaction payloads until block ordering [1] Threshold Encryption & Shutter - Threshold encryption keeps transaction payloads encrypted until they are ordered into a block [1] - Shutter is a pioneer in utilizing threshold encryption to address MEV concerns [1]

Blockchain Security - MEV (Miner Extractable Value) is a persistent issue, with approximately $300 thousand lost to sandwich attacks last month [1] - Threshold encryption offers protection by encrypting the mempool, hiding transactions until block inclusion [1] - Shutter pioneered threshold encryption, initially with per-epoch encryption, later improved to per-transaction encryption, now live on Gnosis Chain [1] Vulnerabilities - A critical flaw was revealed: when the epoch key was reconstructed, all transactions became public, including those not yet included in the block [2]

Key Concepts - Users and applications can now earn rewards from their transactions, a process they were previously excluded from [1] - This is presented as a productive form of MEV (Miner Extractable Value), distinct from malicious types, and does not negatively impact the user's trade [1] - Helius is releasing a new feature that allows users to earn SOL (Solana) for their transactions [1] Mechanism - Users send a transaction (buy/sell/swap) [1] - Searchers analyze the transaction [1] - Users capture the rewards generated by their transactions [1] Important Considerations - Participation in this reward system is completely optional [1] - The system aims to improve prices, user experience (UX), rewards, and overall market efficiency [1]

Project Launch - Arbiter MEV Capture Hook is live on PancakeSwap Infinity [1][2] - MEV rewards are redirected to LPs, starting with SOL-USDT pair on BNB Chain [1] Value Proposition - PancakeSwap LPs are positioned to receive a larger share of MEV CAKE [1] - The Arbiter Hook aims to deliver more value to Liquidity Providers [1]

On-Chain Trading Roles - The report identifies several roles within the on-chain trading ecosystem [1] - "Perps trader" indicates a focus on perpetual futures trading [1] - "MEV/HFT" suggests involvement in Miner Extractable Value and High-Frequency Trading strategies [1] Farming Strategies - "Stable farmer" points to strategies focused on earning yield with stablecoins [1] - "Airdrop farmer" indicates participation in activities to qualify for airdrops [1] Role Hierarchy - The report uses "top," "jungle," "adc," and "support" to categorize roles, possibly indicating a hierarchy or specialization within a team or community [1]