gm Compound community and delegates. We had a great first intro call this morning with Seby, and look forward to another call with Compound devs to dive a little deeper.
Semantic Layer is an infra L1 (doesn’t capture TVL) that can easily and non-intrusively integrate with dApps across the top EVM chains (frontend integration only), giving protocols sequencing sovereignty to take control of the txn orderflow passing through, along with cross-chain communication improvements. The ability to bundle transactions early in the txn lifecycle means protocols that tap SL can capture neutral MEV revenue as a new revenue source while negating toxic MEV. Our tech is built out using an application-specific sequencing (ASS) framework, and within that, we’ve built out Verifiable Sequencing and Aggregation Rules (VSR & VAR) that dApps can customize running on SL to specify what type of txns they want to alter the ordering and bundling of. This could also enable Compound to reduce any chances of exaggerated liquidation cascades through specific bundling during volatile instances, as well as capture some of the liquidation profit that is currently fully handled by 3rd parties.
tl;dr, protocols will be able to order and sequence txns early in the txn lifecycle instead of having centralized sequencers or block builders order and finalize. This gives devs way more control over their protocol and protecting users while bringing in a new revenue stream too and improving business logic if wanted.
Semantic Layer testnet will be live in about a month, with mainnet set for early/mid Q2. We’d love to see Compound try our testnet, and see how MEV re-capture benefits! We are also happy to help with free engineering hours on integration / VAR / VSR meta smart contracts.
Here’re two of our blogs to get a fuller picture:
Thanks everyone