Really appreciate the feedback @WintermuteGovernance! I agree on being cautious. Our solution has the advantage that it works on every chain, which is why we can easily test this out on smaller comets that are deployed on L2s, without requiring experimentation on the large Ethereum Mainnet Comets. That is one of the reasons we’ve specifically decided to go with the proposed comet.
In the coming weeks, I’ll be spending some more time on education around OEV for the Compound community. There are already some activities planned with the AlphaGrowth team, after which we can assess the appetite of the Compound Community through a snapshot vote for running a pilot program.
That would indicate sufficient support and justify a deep dive into our solution by OpenZepplin (as discussed with @cylon).
I want to stress that offering express lanes for people willing to pay for them and redirecting that money back to Compound offers a huge opportunity. There is a reason this is being heavily discussed and considered by Layer-2 solutions like Arbitrum for their transaction ordering.
Our design is nearly identical to what is being proposed by Arbitrum for their transition ordering, which IMO gives even more credibility to our proposed solution.
- A slight delay for regular transactions
- an express lane for those willing to pay
- access is auctioned off through on-chain auctions
- collateral requirements for auction participants
I also want to mention that people like monetsupply question if the proposed delay by OEV solutions (that is being brought up by e.g. @Gauntlet) will even make a difference for lending protocols.
An additional thing to highlight is that these delays that are being spoken about in several of these solutions are minimal and in our specific case only come into affect if the OEV Network malfunctions in any way. Compound is facing bigger issues as evident by the recent discussions around liquidation performance and how the protocol is exposed to risk for several hours due to unhealthy liquidator activity.
In addition to @Gauntlet pointing more liquidators towards Compound comets, we’ll also be able to attract more searcher activity towards the comets to tackle the liquidator activity issue.
Looking forward to further discussions around OEV! 