Alloy Insights Reading List #6

paul faecks
Reading List:
Why Finality Matters

Last week's digest included a discussion on reversible transactions on Ethereum. This article is an interesting follow-up to the newly proposed reversible token standards, arguing that finality and composability outweigh the potential benefits of reversibility. This is a perspective we agree with.

Link: https://0xfoobar.substack.com/p/why-finality-matters?isFreemail=true&publication_id=837067

Designing a Dynamic Fee Policy that Outperforms All Uniswap ETH/USDC Pools

This is an analysis of how returns are impacted for Uniswap liquidity providers if instead of fixed trading fees (usually 0,05%, 0,3%, or 1%), LPs dynamically move between different fee tiers: "The lookback model manages to deliver very consistent profits net of DL [divergence loss], outperforming the annual profits of the 0.3% or 1% fee tiers by a factor of 3 or greater. In addition to long-term outperformance, it also has much shorter stretches of local underperformance, while still managing to mostly capture the large spikes of fee accrual in the 0.3% and 1% liquidity pools ー certainly a very desirable property for any liquidity provider."

Link: https://crocswap.medium.com/designing-a-dynamic-fee-policy-that-outperforms-all-uniswap-eth-usdc-pools-8948b0cc72ab

Relevant News:
Uniswap Labs in the Process to Raise 100m+

Uniswap Labs, creators of the Uniswap Protocol, is reportedly eyeing a fundraise of between $100 million and $200 million at a 10-figure valuation. Polychain and one of Singapore's sovereign wealth funds are said to be involved, though terms of the deal may change as discussions progress, Techcrunch reports. 

Link: https://techcrunch.com/2022/09/30/uniswap-labs-eyes-over-100-million-in-new-funding/

Solana's Liveness Issues Remain

Solana has suffered several outages and transaction stops this year, including a string of partial outages in January. A misconfigured node caused the Solana network to stop processing transactions and go offline on Friday, the fourth major outage for the popular blockchain since January, when it had a string of partial outages for most of that month, according to data from Solana.

Link: https://decrypt.co/111021/ethereum-killer-solana-suffers-another-major-outage

Flashbots' MEV-Boost now accounts for 39% of Ethereum blocks

Flashbots' MEV-Boost relay now accounts for more than one-third of all blocks on Ethereum. MEV-Boost is a service that proposes blocks for validators running the Ethereum blockchain. It is widely used because it offers blocks that provide more value to validators by democratizing access to capturing MEV opportunities (as discussed in depth here). Flashbots is not without controversy however as their relay continues to censor transactions from sanctioned crypto mixing service Tornado Cash.

Link: https://www.theblock.co/post/174386/flashbots-now-accounts-for-39-of-ethereum-blocks-as-censorship-concerns-rise

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