The Limits of Cryptoeconomics
summary
Argues that cryptoeconomic incentives alone can't prevent MEV centralization and describes a combined approach using secure enclaves (SGX) plus economic design. Shows Flashbots Alpha leaks pre-trade bundle flow and relies on trust for spam resistance, cites bundles paying up to ~50 ETH in peak moments, and models attacker cost curves. Proposes SGX attestation removes code wiggle room and defense in depth with slashing and economic incentives, noting practical attacks need ~10 engineers and weeks of work to scale.
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chapters (9)
- 0:00Introduction to MEV
- 1:52Current limitations
- 3:58Defining system robustness
- 5:22The risks of centralization
- 7:00Crypto economic solutions
- 7:56The role of SGX
- 10:31Complementary approaches
- 12:54Security and cost modeling
- 14:54Defense in depth
