delvingbitcoin
Ephemeral Anchors and MEV
Posted on: January 9, 2024 18:30 UTC
The concept of Miner Extractable Value (MEV) is explored, emphasizing the importance of automated bots in transaction creation to ensure efficiency and optimize value extraction by miners.
The necessity becomes critical when there's a need for miners to operate additional software, termed a sidecar daemon, to fully harness the mining potential. Transactions that are straightforward to construct and can easily enter the mempool, notably those which allocate the entirety of funds to fees, are highlighted as examples that fit this model. However, these transactions only serve their purpose if there isn't already a public service performing this task.
In relation to systems like Lightning Network that produce transient anchors, it is suggested that they should integrate such bots within their existing infrastructure. This integration is crucial to sidestep any reliance on external entities to perform these tasks. As an alternative to relying on various systems to individually handle this, the proposal includes the development of a centralized project dedicated to identifying all instances of such extractable value. This project would be responsible for ensuring that these opportunities are consistently added to the mempool, thereby providing a streamlined solution to maximize the value mined from these transactions.