Multiblock MEV opportunities & protections in dynamic AMMs
Trading and Market Microstructure
2024-04-26 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.
Keywords
Cite
@article{arxiv.2404.15489,
title = {Multiblock MEV opportunities & protections in dynamic AMMs},
author = {Matthew Willetts and Christian Harrington},
journal= {arXiv preprint arXiv:2404.15489},
year = {2024}
}
Comments
7 pages plus appendix