References & Citations
Quantitative Finance > Trading and Market Microstructure
Title: Multiblock MEV opportunities & protections in dynamic AMMs
(Submitted on 23 Apr 2024 (v1), last revised 25 Apr 2024 (this version, v2))
Abstract: Maximal Extractable Value (MEV) in Constant Function Market Making is fairly well understood. Does having dynamic weights, as found in liquidity boostrap pools (LBPs), Temporal-function market makers (TFMMs), and Replicating market makers (RMMs), introduce new attack vectors? In this paper we explore how inter-block weight changes can be analogous to trades, and can potentially lead to a multi-block MEV attack. New inter-block protections required to guard against this new attack vector are analysed. We also carry our a raft of numerical simulations, more than 450 million potential attack scenarios, showing both successful attacks and successful defense.
Submission history
From: Matthew Willetts [view email][v1] Tue, 23 Apr 2024 20:03:12 GMT (806kb,D)
[v2] Thu, 25 Apr 2024 16:12:58 GMT (806kb,D)
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