Bell Curve

Latest Episodes:

Solana’s MEV Problem | Eugene Chen, Lucas Bruder May 02, 2023

Show notes

Season 4 | Episode 6

In this episode of Bell Curve, we are joined by Eugene Chen and Lucas Bruder to discuss MEV on Solana. We compare Solana's MEV market to Ethereum's and then delve into the unique MEV challenges from Solana's high-throughput design. Our conversation then turns to Solana's missing mempool, spam reduction strategies, resource pricing, and a detailed explanation of Jito's MEV solution. Eugene and Lucas also shed light on Solana's fee markets, Firedancer, the role of latency, and the tradeoffs of CLOBS and AMMs (this one's spicy).

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Timestamps:

(00:00) Intro: Pre-Interview

(02:56) Solana MEV 101

(13:29) Spam: 58% of Solana's Compute is on Failed Txs

(18:13) Jito's Design

(25:06) Jito vs Flashbots Adoption

(33:40) “Rook Ad”

(35:32) Who Captures the MEV?

(38:22) The Problems with MEV in Solana Today

(41:58) Solana’s Fee Markets

(49:58) PBS on Solana?

(52:43) Co-Location Incentives

(56:13) Jump and Firedancer

(58:27) DeFi on Solana

(1:03:56) CLOBS vs AMMs

(1:14:10) The Role of Latency

(1:20:14) Recap: Post-Interview

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Follow Lucas: https://twitter.com/buffalu__

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This episode is brought to you by Rook. Close to a billion dollars has already been taken out of users’ pockets through MEV. Rook built a solution that automatically drives this value back to where it belongs: with the users and applications that create it.

If you use on-chain products, tell your wallet, favorite app and go-to node provider to use Rook; if you're a developer, message us today to find out how to integrate Rook with your product. Follow Rook on Twitter and them a message at https://twitter.com/Rook.

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Resources:

Jito

https://www.jito.wtf/

https://twitter.com/jito_labs

Ellipsis Labs

https://ellipsislabs.xyz/

https://twitter.com/ellipsis_labs

@0x94305

https://twitter.com/0x94305

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Disclaimer: Nothing said on Bell Curve is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Mike, Jason, Michael, Vance and our guests may hold positions in the companies, funds, or projects discussed.

The Wallet Wars: Apps vs Infrastructure | Roundup Apr 28, 2023

Show notes

In today's episode, we discuss why crypto's top apps will win the wallet wars. We start by exploring tech's move to profitability, why we're bullish on Coinbase and the challenges of decentralized sequencers. We then discuss how suave and account abstraction are changing the landscape of MEV and user interactions. The wallet wars are coming; who will win? We finish with a discussion on ETH's LSD market, L1 vs L2 volume, the death of NFTs and more!

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Timestamps:

(00:00) Introduction

(01:08) Is Big Tech Back?

(14:11) “Lightspeed Ad”

(15:03) Commercial Real Estate Repricing

(18:13) Coinbase Sues the SEC

(28:56) Decentralized Sequencers

(35:54) Suave, Account Abstraction & the Wallet Wars

(44:05) ETH’s Withdrawal Queue and LSDs

(53:53) L1 vs L2 Volume

(1:01:14) Are NFTs Dead?

(1:07:23) Solana and The Great Convergence

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Lightspeed Podcast Opportunity:

Click below to learn more about Blockworks' upcoming Lightspeed podcast and submit an application to be one of our hosts!

https://bit.ly/3NlQUwH

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Resources:

DeFi Llama

https://defillama.com/

Blockworks Research Newsletter

https://blockworks.co/newsletter/research

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Interview with a Searcher 2.0 | Dean Eigenman, Anish Agnihotri Apr 25, 2023

Show notes

Season 4 | Episode 5

Join us on Bell Curve as we delve into the world of MEV Searchers with guests Dean Eigenman and Anish Agnihotri. We start with an introduction to the role of Searchers, today's Searcher landscape and the Searcher business model. Dean and Anish then explain how Searchers find MEV opportunities, the relationship between Searchers and Builders, atomic vs non-atomic trades, the role of latency and more. This is your chance for an inside look into the business model of an MEV Searcher!

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Timestamps:

(00:00) Intro: Pre-Interview

(02:36) Interview Start: Guest Backgrounds

(07:31) The MEV Searcher Landscape

(12:43) MEV Strategies Across Execution Environments

(23:55) Searcher Competition

(27:03) “Rook Ad”

(28:56) Searcher Competition

(35:29) The Relationship Between Searchers and Builders

(41:10) Searcher Capital Requirements

(43:11) Atomic vs Non-Atomic Trades

(51:29) Traditional HFT and How to Win at MEV

(55:40) The Role of Latency

(59:30) Centralization Concerns

(1:02:05) Minimizing MEV vs Maximal Extraction

(1:05:27) Qualities of a Great Searcher

(1:12:45) Recap: Post-Interview

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Follow Anish: https://twitter.com/_anishagnihotri

Follow Dean: https://twitter.com/deaneigenmann

Follow Hasu: https://twitter.com/hasufl

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Resources:

Interview With a Searcher (Hasu, Uncommon Core)

https://spoti.fi/43Bueyk

End Game by Vitalik

https://vitalik.ca/general/2021/12/06/endgame.html

Dialectic

https://dialectic.ch/

https://twitter.com/Dialectic_Group

Project Blanc

https://github.com/project-blanc

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Why GameFi’s Best Apps Will Outperform DeFi | Roundup Apr 21, 2023

Show notes

In today's episode, we discuss this week's regulatory updates, the MEV debate and what to expect in the next bull cycle! We've had a hectic regulatory week with Gary Gensler's committee meeting, the EU's MICA legislation and a heated stablecoin hearing. We explore where US regulation is heading, the positive implications of MICA and if companies like Coinbase will move their operations to crypto-friendly jurisdictions.

We then discuss the potential return of FTX, the MEV debate and what narratives will play out in the next bull cycle. Why would anyone buy FTX? Will MEV be democratized, or can it be reduced? Why will the best GameFi projects outperform DeFi? Tune in to find out!

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Timestamps:

(00:00) Introduction

(01:23) Asia Embraces Crypto

(11:39) The Global Crypto Regulatory Landscape

(16:48) EU’s MICA Regulation

(25:21) Coinbase Secures Bermuda License

(34:45) “Lightspeed Ad”

(35:38) FTX: Back From the Dead?

(48:09) Flashbots’ MEV Share & the MEV Debate

(59:25) The Next Bull Market: GameFi vs DeFi

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Follow Michael: https://twitter.com/im_manderson

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Lightspeed Podcast Opportunity:

Click here to learn more about Blockworks' upcoming Lightspeed podcast and submit an application to be one of our hosts!

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Resources:

Miners, Front-Running-as-a-Service Is Theft

https://www.coindesk.com/markets/2021/04/07/miners-front-running-as-a-service-is-theft/

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Disclaimer: Nothing said on Bell Curve is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Mike, Jason, Michael, Vance and our guests may hold positions in the companies, funds, or projects discussed.

MEV in a Modular World | Jon Charbonneau, Robert Miller Apr 18, 2023

Show notes

Season 4 | Episode 4

In this episode of Bell Curve, we are joined by Jon Charbonneau and Robert Miller to discuss how Ethereum's modular roadmap impacts the future of MEV. We explore L2 MEV design, decentralized sequencer models, cross-domain MEV, latency games, and Suave. Jon and Robert are two giga brains that understand the bleeding edge of modular MEV design!

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Timestamps:

(00:55) Intro: Pre-Interview

(02:39) How Ethereum’s Modular Roadmap Impacts MEV

(08:18) The Rollup Revolution: Consensus and Latency Games

(18:35) How Sequencers Work Today

(23:43) L2 MEV Models: Optimism and Arbitrum

(29:42) Why L2s Need PBS

(32:21) Decentralized Sequencer Designs

(44:45) Cross-Domain MEV and Atomicity

(53:46) Suave: The Mechanics, Order Flow Auctions & Roadmap

(57:07) “Rook Ad”

(59:09) Suave: The Mechanics, Order Flow Auctions & Roadmap

(1:27:50) Recap: Post-Interview

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Follow Jon: https://twitter.com/jon_charb

Follow Robert: https://twitter.com/bertcmiller

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Resources:

Rollups Aren't Real by Jon

https://joncharbonneau.substack.com/p/rollups-arent-real

Hasu's Mevconomics talk

https://www.youtube.com/watch?v=6xS0xMzh9Tc&ab_channel=ETHGlobal

MEV Share

https://collective.flashbots.net/t/mev-share-programmably-private-orderflow-to-share-mev-with-users/1264

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Uniswap’s Mobile Wallet: Breakthrough or Flop? | Roundup Apr 14, 2023

Show notes

In today's episode, we discuss the pros and cons of Uniswap's new mobile wallet. Can Uniswap leverage their proximity with users to acquire the next wave of retail, build horizontal products, establish moats and compete with centralized offerings? Tune in to find out!

We also discuss account abstraction, the fappening, ETH's Shapella upgrade and how the US is falling behind in crypto.

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Timestamps:

(00:00) Introduction

(01:46) Uniswap's Mobile Wallet: The Pros and Cons

(09:12) “Lightspeed Ad”

(10:04) Uniswap's Mobile Wallet: The Pros and Cons

(29:40) Account Abstraction, the Fappening and Wallet-as-a-Service

(46:36) Solana’s Saga Phone

(57:58) Shapella: ETH Unleashed

(1:02:29) The U.S. Is Losing Its Edge in Crypto

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Follow Michael: https://twitter.com/im_manderson

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- -

Lightspeed Podcast Opportunity:

Click here to learn more about Blockworks' upcoming Lightspeed podcast and submit an application to be one of our hosts!

- -

Resources:

The Fappening

https://zeeprime.capital/the-fappening

State of Crypto 2023 by a16z

https://api.a16zcrypto.com/wp-content/uploads/2023/04/State-of-Crypto.pdf

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Inside the Economics of MEV | Matt Cutler Apr 11, 2023

Show notes

Season 4 | Episode 3

In this episode of Bell Curve, we are joined by Matt Cutler from Blocknative to discuss the economics of MEV. We dive deep into MEV value capture, incentive structures and the relayer monetization debate (p.s. there's a great debate between Matt and Hasu). We also cover order flow auctions, latency wars, account abstraction, user preferences and more!

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Timestamps:

(00:00) Intro: Pre-Interview

(02:20) Interview Start

(02:58) The MEV Supply Chain

(06:01) Relays: Their Role and Monetization Debate

(34:51) “Rook Ad”

(36:44) Learnings From a $25M MEV Exploit

(46:36) Wallets, User Preferences and Order Flow Auctions

(1:00:59) Account Abstraction and Exclusive Order Flow

(1:20:06) Recap: Post-Interview

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Follow Matt: https://twitter.com/mcutler

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Resources:

$25M MEV Exploit

https://blockworks.co/news/validator-frontruns-mev-bots

Blocknative

https://www.blocknative.com/

https://twitter.com/blocknative

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ETH L2s Have The Same Flaws As Alt L1s | Roundup Apr 07, 2023

Show notes

In today's episode, we debate Mike's tweet that Eth L2s have every feature Alt L1s are criticized for: centralized, downtime, opaque resource allocation and wild valuations. To get close to the metal, we compare Solana vs Arbitrum based on economics, network effects and future roadmap. If you listen to one conversation this week, this is it.

We also discuss Arbitrum's governance debacle, the value of protocol BD deals, a $25M MEV exploit, Euler's $200M recovery and Shanghai predictions!

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Follow Michael: https://twitter.com/im_manderson

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- -

Lightspeed Podcast Opportunity

Click here to learn more about Blockworks' upcoming Lightspeed podcast and submit an application to be one of our hosts!

- -

Resources

Mike's Eth L2 vs Alt L1 debate tweet

https://twitter.com/mikeippolito_/status/1642262306712109057

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The Cosmos SDK of Rollups | Preston Evans, Sovereign Labs Apr 05, 2023

Show notes

Today's episode is a bonus episode from our podcast 0xResearch, produced by the Blockworks Research team. This is one of my favorite episodes they've done, a deep dive into the future of rollups, scaling and zk-tech. The first 15 minutes is the "analyst bullpen" segment on Arbitrum's recent governance debacle, followed by an interview with Preston Evans from Sovereign Labs (use the Timestamps if you want to skip ahead). If you enjoy this episode, follow the link in the show notes below to subscribe!

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Join us on 0xResearch as we interview Preston Evans, the Chief Scientist of Sovereign Labs. Why should you care about Sovereign? Because they're building the Sovereign SDK. Like the Cosmos SDK that enables modular plug-and-play experimentation for L1s, the Sovereign SDK is a modular toolkit for building zk-rollups on any chain with seamless composability. In this episode, we discuss how Sovereign's design compares to the Cosmos SDK and IBC, smart contract vs Sovereign rollups, the role of data availability, decentralized sequencer design and more! This is my favorite 0xResearch episode yet.

And as usual, we start the episode with our analyst bullpen to discuss the recent governance drama at Arbitrum!

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Timestamps:

(00:00) Introduction

(00:45) Arbitrum's Governance Blunder

(15:04) Blockworks Research

(16:03) Interview Start: What is Sovereign?

(22:23) The Sovereign SDK vs Cosmos SDK

(23:59) Settlement on Smart Contract vs Sovereign Rollups

(28:14) The Role of Data Availability

(32:24) Decentralized Sequencers

(37:54) Optimistic Rollup Tradeoffs

(41:24) Composability and IBC

(52:22) What Is Sovereign’s X Factor?

(54:17) Building Rollups on Bitcoin

(59:11) Sovereign’s Business Model and Timeline

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Follow Preston: https://twitter.com/prestonevans__

Follow Westie: https://twitter.com/WestieCapital

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Resources:

Delegate ARB to Blockworks Research

https://twitter.com/blockworksres/status/1639279479368368132

Sovereign Labs

https://www.sovereign.xyz/

https://twitter.com/sovereign_labs

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Check out Blockworks Research today! Research, data, governance, tokenomics, and models – now, all in one place

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Disclaimer: Nothing said on 0xResearch is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Dan, Sam, and our guests may hold positions in the companies, funds, or projects discussed.

Shining A Light On MEV | Tarun Chitra, Justin Drake Apr 04, 2023

Show notes

Season 4 | Episode 2

In this episode of Bell Curve, we are joined by Tarun Chitra and Justin Drake to discuss how builders are navigating the complex world of MEV. One of the hottest debates is MEV precedence. What parties in the MEV value chain should accrue MEV? Tarun and Justin give their takes and explain how applications and protocols are approaching this challenge. We then explore MEV auction vs latency games, how L2s complicate MEV, various approaches to MEV reduction and on-chain privacy and more!

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Timestamps:

(00:00) Intro: Pre-Interview

(02:12) Interview Start

(32:00) “Rook Ad”

(33:54) MEV Burn

(41:45) Should the Application or Protocol Layer Reduce MEV?

(48:23) MEV Auction Game Theory

(51:55) The Role of Latency

(1:04:03) How L2s Increase the Complexity of Latency

(1:10:21) Privacy in the MEV Supply Chain

(1:26:42) Recap: Post-Interview