A little bit of chit-chat
Namada by Anoma, the new privacy-focused chain coming to Cosmos, will be presenting on ZK Hack tomorrow. This is an excellent opportunity to learn more about how it works and what privacy-preserving features it brings to the table. Sign up for free.
The bad and the good MEV
Sunny Aggarwal, the founder of Osmosis, posted a pre-proposal on Commonwealth to open up a discussion about how the protocol should prevent “harmful MEV extraction.” In contrast, the proposal also considers the presence of “benign” MEV extracted from the protocol.
In terms of preventing the extraction of “harmful MEV”, the proposal asks for the community to signal its support for slashing validators who do any of the following:
Validators running harmful MEV extraction software
Validators running outsourced block production software
Validators running custom transaction ordering software
Meanwhile, according to the text, arbitrageurs extracted around $6.8M in revenue from Osmosis, while the protocol made $50,000 in fees. This example is supposed to call for the community to support the development of the following initiatives to start collecting this benign MEV and distribute it among token holders:
Threshold decryption to create private mempools
Joint Block Proposals to fight proposer censorship and tx delayal
ProtoRev: in-protocol capture of cyclic arbitrages (Approved in Prop #341)
On-chain Top of block auctions
Improved fee markets to prevent on-chain spam
Batched DEX trades
The community response has been positive. That said, over on the forum, Osmosis community members raised some doubts regarding the timeline for these measures to be implemented.
More MEV in Cosmos
MEV is becoming a hot topic in the whole Cosmos ecosystem. This week, Skip deployed their MEV-capturing module on Evmos. From now on, validators could opt-in to receive a share of the MEV captured by the Skip module and decide how to give it back to the community.
The deployment comes right as Evmos transactions are booming due to increased liquidity and incentive. Also, one use-case very specific to the Evmos ecosystem is the opportunity to add some of the MEV revenue to the Developers Incentive scheme to support the builders.
Airdrops List
Here’s a list of upcoming airdrops.
Wrap Up
If you like our newsletter, share it with your friends so they can be also on top of the latest and the greatest (and sometimes not so great) of the Cosmos ecosystem.
In the meantime, feel free to follow us on Twitter @zkvalidator and visit our website to stake with us.
A little bit of intergalactic music for you