Fun

ParaSwap launches intent-based protocol to curb MEV attacks

News Feed - 2024-08-19 10:08:00

Ana Paula Pereira11 hours agoParaSwap launches intent-based protocol to curb MEV attacksPopular MEV attacks, such as sandwich transactions, have netted attackers nearly $17 billion in the past 30 days.1177 Total views5 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onDecentralized exchange aggregator ParaSwap is launching an intent-based trading protocol designed to mitigate an issue costing millions of dollars on crypto transactions daily: MEV attacks. 


“MEV” refers to the “maximal extractable value,” in which validators use their ability to control the order, inclusion and execution of onchain transactions to profit from users. According to data from data platform EigenPhi, attackers have profited nearly $17 billion over the past 30 days from popular attacks such as sandwich transactions.


“MEV has cost users billions, contributing to a degraded user experience and making protocols less efficient in DeFi,” Mounir Benchemled, founder of ParaSwap, told Cointelegraph.Profits from popular MEV attacks over 30 days. Source: EigenPhi


In early 2024, ParaSwap’s team started working on its intent-based trading model to offer MEV protection. The protocol, according to Benchemled, allows users to define their trading “intent” instead of exposing raw transactions to mempools.


The decentralized finance (DeFi) boom of 2021 made MEV extraction especially lucrative. Certain protocols, like Uniswap, were heavily targeted by bots, raising concerns about possible market abuse.


The trader’s intent when executing a transaction could even reduce possible liabilities regarding market manipulation under some jurisdictions, but it does not stop miners and validators from trying to profit from attacks.


“The presence of MEV impacts not only individual transactions but also the overall fairness, accessibility and decentralization of the DeFi ecosystem, making it one of the most pressing issues that needs addressing,” argued Benchemled.


Related:Paradigm calls on European markets regulator to show nuance regarding MEV


ParaSwap’s Delta protocol aims to solve this issue by submitting intended trades in three steps. The process begins with preprocessing, where the user’s intent — such as price range — is defined. This intent is then submitted to an auction where AI agents compete to propose the most efficient execution strategy, considering factors like liquidity and timing. The winning agent executes the trade through the Portikus Swap module, adhering to the user’s intent and minimizing MEV exploitation risk.


Other liquidity aggregators, such as 0x, have also actively developed mitigation strategies for MEV attacks, such as combining transactions into a single batch to reduce opportunities for attacks and mechanisms that prioritize transactions based on other criteria besides profitability, including time priority and a fair distribution of block space.


ParaSwap’s dashboard reports over $76 billion in lifetime transactions conducted through the protocol since 2019. The team’s roadmap includes expanding support for more chains and automated strategies, along with AI-driven agents.


Magazine: DeFi and Ethereum are the ‘new narrative’: Michaël van de Poppe, X Hall of Flame# Blockchain# Business# Decentralization# Bot# DeFi# TradingAdd reaction

News Feed

Tristan Greene5 hours agoBitcoin drives digital asset inflows for the first time in 6 weeks: ReportSolana was the only other major asset to show inflows for the week.1512 Total views20 Total sharesListen to article 0:00N
Savannah Fortis11 hours agoChatGPT web traffic drops for third consecutive month in AugustWeb traffic from users worldwide for OpenAI’s ChatGPT declined during the summer months, which could be linked to university-age
Brayden Lindrea8 hours agoLido Finance discloses 20 slashing events due to validator config issuesThe initial impact amounted to 20 Ether, worth $31,000, while the validator involved has now been taken offline.1297 Total
Amaka Nwaokocha12 hours agoPepecoin: Insider trading claims surface amid token theftOn-chain analyst Yazan reports insider selling of PEPE holdings, with around 400 billion PEPE sold, aligning with Pauly’s team exposur
Elon Musk’s Boring Company to Accept Dogecoin Payments for Rides on Las Vegas Transit System Loop
Elon Musk"s Boring Company to Accept Dogecoin Payments for Rides on Las Vegas Transit System Loop Elon Musk’s Boring Company will accept the meme cryptocurrency dogecoin as
Bitcoin, Ethereum Technical Analysis: BTC Rebounds, Following Decline in US Consumer Confidence 
Bitcoin, Ethereum Technical Analysis: BTC Rebounds, Following Decline in US Consumer Confidence  Bitcoin rebounded on March 1, as markets reacted to the latest consumer confidence
Shopping․io Integrates DINO LFG Enabling $DINO for E-Commerce Shopping
Shopping․io Integrates DINO LFG Enabling $DINO for E-Commerce Shopping press release PRESS RELEASE.Shopping.io announced their partnership with DINO LFG. DINO holders can now use
Bitcoin Market Dominance Dips Down to 40% While Ethereum and Other Crypto Market Caps Swell
Bitcoin Market Dominance Dips Down to 40% While Ethereum and Other Crypto Market Caps Swell While bitcoin prices have risen in value during the last two weeks, bitcoin dominance le
Luna Foundation Acquires $1.4 Billion in Bitcoin, Decentralized Reserve Stash Rises to 80,394 BTC
Luna Foundation Acquires $1.4 Billion in Bitcoin, Decentralized Reserve Stash Rises to 80,394 BTC According to a report published on Thursday, the Luna Foundation Guard (LFG) expla
Arijit Sarkar34 minutes agoUK considers blanket ban on crypto investment cold callsThe U.K. Treasury has released a consultation paper to understand the grassroots-level impact of a blanket ban on cold calls related to f
MiCA regulation takes shape under EBA’s newest guidelines
Ana Paula Pereira2 hours agoMiCA regulation takes shape under EBA’s newest guidelinesThe European Banking Authority has introduced a series of technical standards and guidelines for token issuers as MiCA implementation
Ethereum Price At $10,000: Symmetrical Triangle Breakout Predicts Big Gains
Este artículo también está disponible en español. The Ethereum priceis signaling a potential breakout based on recent price movements. According to Trader Tardigrade, a c