Ethereum

While controlling so many blocks, why wouldn’t the Lido DAO do an exclusivity deal with whoever turns out to be the best MEV bot? They could offer a higher kickback to the bot in exchange for guaranteeing 1/3rd of all Ethereum blocks. They’d end up with the highest APR forever. Does anything stop this?

davidcann.eth, developer, EVMavericks #982, @orangedao, @purple

Great point and I cannot think of a counter. In fact, if I was Lido DAO, I’d try to insource this capability instead of relying on a third-party bundler. Ultimate moat, at least until MEV burn/smoothing is enshrined at protocol level

Vertical integration between proposers and builders is possible in theory, but “best mev bot” is a pretty contested title atm, and unless the vertical integration was used to do things that you couldn’t do without (which would be terrible optics as pointed out), I am not sure it would be so valuable

Vertical integration is taking shape at the builder-searcher level, check this post by SMG.

Vertical integration is taking shape at the builder-searcher level, check this post by SMG. 

https://twitter.com/specialmech/status/1699552713040941224