Multiblock MEV opportunities & protections in dynamic AMMs
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.
- Publication:
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arXiv e-prints
- Pub Date:
- April 2024
- DOI:
- arXiv:
- arXiv:2404.15489
- Bibcode:
- 2024arXiv240415489W
- Keywords:
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- Quantitative Finance - Trading and Market Microstructure
- E-Print:
- 7 pages plus appendix