Navigating the post-merge Ethereum terrain
In the wake of The Merge on the Ethereum Network, a host of entities and protocols have seized the opportunity to collect staking rewards. This new era is witnessing the flourishing of several protocols designed to extract and distribute these rewards to their Liquid Staking Tokens (LSTs), reflecting the evolving dynamics of the Ethereum ecosystem.
Innovating in the face of MEV challenges
Despite the increasing potential for meaningful manipulation within the Ethereum network, especially through Maximum Extracted Value (MEV), visionary entities see not only threats, but also strategic aspects in this apparent chaos. The growing problems within the Ethereum ecosystem require greater efforts to navigate MEV, while the stakes on this crucial battlefield are focused on network dominance rather than mere survival.
The birth of the MEV protocol
The MEV protocol was born from a synergistic collaboration between groundbreaking pioneers of the inaugural ETH staking service and a standout in the Ethereum infrastructure. Together, they have established a framework to strengthen network security, enrich structural alternatives to validators and Liquid Staking Tokens, and increase value, while driving network decentralization forward.
mevETH, a new LST, was created to provide maximum value for validators. The new MEV Protocol auction system, developed by Manifold Finance, supports multiple winners per slot, unlike the existing one-slot, one-winner framework in the Flashbots MEV Boost system. This transformation promises to pave the way for more complex applications and innovative networking practices, driving decentralized progress.
mevETH: a proactive strategy for MEV management
mevETH goes beyond just addressing MEV vulnerabilities. It enables a deeper understanding of the dynamics arising from the aggressive competition that drives it, exposing the true nature of the Ethereum ecosystem and revealing the inherent structure of the competition itself. The MEV protocol introduces a vertically integrated approach to the Ethereum stack, efficiently capturing value through a strategy that includes the validator base fee, incentives for liquidity providers, and an innovative MEV concept that allows for multiple auction winners.
Transparency and fairness in block validation
MEV Protocol advocates a transparent and fair ethos in block validation by giving validators several options to determine who secures the rights to their blocks. Such crucial decisions cannot be controlled by a single private entity.
Launching mevETH as an Omnichain Fungible Token
Launched as an Omnichain Fungible Token (OFT), mevETH provides portability between LayerZero-compatible networks, improving cross-chain functionality.
The architectural team behind the MEV protocol
Led by a plethora of experienced and dedicated professionals such as Lumberg (Project Lead), Sam Bacha (Chief Architect), Jake Lee (Ops Lead) and many more, the team, together with Manifold Finance and 20squares, aims to create a new route through the Ethereum landscape, ensuring the robustness and resilience of the MEV protocol’s various economic mechanisms.
MEV Protocol Strategic Advisors include Machibigbrother, 0xMaki and Sam Kazemian, each bringing a wealth of strategic insight and advisory skills.
mevETH token dynamics
Since its launch in mid-August 2023, mevETH has amassed over 28,000 ETH stakes and has entered the reward distribution phase. The protocol allows users to instantly deposit ETH and earn mevETH, and supports CRETH2 migrations to mevETH, with accrued rewards in ETH available shortly after the protocol is implemented.
The transformation in the Ethereum landscape is underway
While the threat from MEV is significant, it does not symbolize an existential risk, but rather represents nuanced strategies in an ongoing battle for network control. The MEV Protocol and mevETH symbolize a revolutionary step forward not only in pre-emptively identifying and mitigating MEV vulnerabilities, but also in illuminating the deep dynamics of intensified competition driving MEV.
