Headline: **L2 MEV will be huge and is both an opportunity and a threat to the entire ecosystem**
- TL:DR; Motivate problem/why does this matter to end users now (huge cost to end users, failed transactions, mainstream looking unfavourably upon crypto right now, more market design fairness would could go a long way)
- Refresher/overview on MEV
- Refresher on rollup-centric Ethereum roadmap
- MEV in rollups:
- Centralization/level of sophistication of sequencer
- MEV as a revenue stream for L2 tokens (Optimism)
- Mitigation of MEV on L2:
- Threshold encryption (Rolling Shutter)
- Fair sequencing (Chainlink FSS + Arbitrum)
- Auction mechanisms (Optimism MEVA)
- Solve at application level (Cow Protocol)
- How the above can work together
- Summary: MEV in L2 is both a huge threat to UX and mainstream adoption, while simultaneously also being key to the future of L2 monetisation. There's steps we can take today to make this a happy ending for everyone.
**Links:**
- John Wang about L2 MEV: https://twitter.com/j0hnwang/status/1489268468771872775
- Threshold encryption to combat MEV on L2: https://blog.shutter.network/announcing-rolling-shutter/
- Chainlink FSS + Arbitrum: https://blog.chain.link/arbitrum-and-chainlink-fair-sequencing-services/
- MEV explainer series:
- Part 1: https://blog.shutter.network/what-the-heck-is-miner-extractable-value-a-series-about-mev-basics/
- Part 2: https://blog.shutter.network/front-runner-attacks-and-the-impact/
- MEV day: https://mev.day
- MEV day summary: https://blog.shutter.network/mev-day-devconnect-amsterdam-summary/