Flashbots

 
Flashbots is a research and development organization formed to mitigate the negative externalities posed by Maximal Extractable Value (MEV) to stateful blockchains, starting with Ethereum.
 

I. Our Work

Our primary focus is to enable a permissionless, transparent, and sustainable ecosystem for MEV, via a three-pronged approach:
  • Illuminate: bringing transparency to MEV activity.
  • Democratize: democratizing access to MEV revenue.
  • Distribute: enabling sustainable distribution of MEV revenue.

II. Our Dual Engines

Product & research are the semi-autonomous dual engines that propel our organization forward:
  • Flashbots Product builds core infrastructure and ecosystem tooling that redefine the block production supply chain across blockchains.
  • Flashbots Research explores MEV market dynamics and blockchain design challenges at the intersection of economics, security, and cryptography.

A. Flashbots Product

We are building a decentralized block-building network to empower users and maximally decentralize public blockchains.
Our approach to product development is long-term oriented and research-informed while at the same time iterative and market-driven. These are the products and infrastructure we currently publicly maintain:
  • Flashbots Protect: an rpc endpoint that anyone can use for protection from frontrunning and failed transactions.
  • Flashbots Data: tools and dashboards to improve the transparency of MEV activity on Ethereum and the Flashbots Auction.

B. Flashbots Research

In the past, our work defined and defied the existential crisis of MEV. Today, we are a research hub dedicated to tackling and uncovering questions relevant to the short, medium and long-term future of the MEV ecosystem. We have identified 10 research priorities:
auction design
MEV on ETH2
cryptographic privacy
MEV in L2
cryptoeconomic privacy
account abstraction
MEV taxonomy
protocol design
Flashbots as critical infrastructure
search optimization
Our research process consists of in-house research and the Flashbots Research Proposals (FRPs). The FRP process is an open and collaborative research process modeled upon the Ethereum Improvement Proposal (EIP), funded with our MEV Fellowship Grants.
  • Research Writings: collections of blog posts and papers published by Flashbots researchers.
  • Ongoing FRPs: research collaboration with community research contributors.
In the long run, we aim to build a sustainable research organization, where ambitious researchers can focus on the most interesting research problems, unencumbered by the friction of academia and the shackles of the industries.
 

III. Our Journey

A. The MEV Dystopia

Public blockchains offer a simple, but profound promise: a decentralized system of finance open to anyone, anywhere. Yet, we are far from realizing crypto’s bold future and face challenges every day that threaten to undermine this delicate experiment in decentralization.
Maximal extractable value (MEV) is a measure devised to study consensus security by modeling the profit a miner (or validator, sequencer, or other privileged protocol actor) can make through their ability to arbitrarily include, exclude, or re-order transactions from the blocks they produce.
Super linear return from MEV extraction results in significant economy of scale in block construction, creating incentives for centralization. Block producers who integrate with trading firms can get an inherent advantage in building the best blocks. The endgame in which a few large players making all the blocks - is an “MEV dystopia” that had to be prevented at all costs.

B. The Flashbots Research Collective

Flashbots was born out of the existential crisis of MEV, on Ethereum. In 2020, a group of concerned blockchain researchers, builders and whitehats converged on a journey to mitigate the negative externalities posed by MEV to stateful blockchains, starting with Ethereum.
We built open-source software that quantifies MEV and began exploring MEV’s frontiers within and across blockchains through open research initiatives, and ecosystem grants.
We uphold our commitment to public and open research, with the community, for the ecosystem. We steward the direction of community research via hosting open research discussions such as the MEV Roast series, and curate conferences such as MEV.wtf, Reorg.wtf, MEV.day and MEV-sbc.
We periodically release research posts that dive into the open questions of MEV and published research papers that pioneered an early exploration of cross-domain MEV.

C. The Flashbots Auction on Ethereum

The evolution of Flashbots auction has been an iterative journey towards gradual separation of duties and specialization of roles within the transaction supply chain.
  • On Nov 23, 2020, we published the initial architecture and open-sourced MEV-geth for Ethereum, enabling miners to include strictly profitable transaction bundles in their blocks, thereby outsource block construction to MEV searchers via an off-chain, sealed-bid auction.
  • On Jan 6, 2021, we released Flashbots Alpha, which introduces the Flashbots Relay as a transaction bundle propagation service that receives bundles from MEV searchers and forwards them to miners in order to democratize MEV.
    • By April 2021, mining pools accounting for more than 84% of the Ethereum network hashrate adopted MEV-geth, and sourced their MEV transaction bundles from the Flashbots relay, empowering anyone to be, effectively negating incentives for vertical integration between searchers and trading firms.
  • On May 24, 2021, we released MEV-geth v0.2, introducing bundle merging, enabling miners to include multiple bundles per block.
  • On Sep 27, 2021, we released MEV-geth v0.4 introducing megabundles. These are bundles that are merged by the Flashbots relay before being sent to miners, thereby enabling further specialization.
  • In October 2021, we released Flashbots Protect, an rpc endpoint that anyone can use to protect their transactions from frontrunning and reverts by using the Flashbots Auction.
  • On Aug 17, 2022, in order to foster healthy and global relay competition ahead of the Merge, we open-sourced the MEV-Boost relay under AGPL, an aggressive copy-left license that requires derivatives to be developed in the open.

IV. Join Us

On the mission to democratize MEV, our collective is always on the lookout for founder level talent and experts in MEV to join us.
Please apply through our jobs page or reach out directly at jobs@flashbots.net with more information on why you would like to join our team.

V. Other Links

Github - Documentation - Status Calendar - Transparency reports Discord - Youtube