Proud to share one of our most important research projects to date!
We have discovered that the lack of proper commitment mechanisms makes PBS fundamentally incentive incompatible as a vehicle for Ethereum transactions.
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Fresh @nuconstruct research
You can make more moneyz as an orderflow seller if you choose your auction format wisely
Or just use TOOL
https://t.co/Q3lH95V9oi
New post on https://t.co/j5UaKGaEf3!
Second Thoughts: How 1-second subslots transform CEX-DEX Arbitrage on Ethereum
By:
- nuconstruct
- AnteroE
π https://t.co/c8MRnyJLrn
Highlights:
- Reducing Ethereum's slot time from 12 seconds to 1 second increases CEX-DEX arbitrage transactions by 535% and trading volume by 203%.
- The increase in transactions is driven by two main factors: improved composability (371% increase) and reduced execution risk (164% increase).
- Faster execution reduces the variance of trade outcomes, making arbitrage opportunities more appealing and increasing risk-adjusted returns.
- The study models the decision-making process of arbitrageurs under execution uncertainty, revealing that many profitable opportunities are missed due to current confirmation times.
- Results are consistent across different risk preferences and probabilities of successful trades, indicating robustness in the findings.
ELI5:
This research looks at how making Ethereum transactions faster (from 12 seconds to 1 second) affects trading between centralized exchanges (like Binance) and decentralized exchanges (like Uniswap). It finds that faster transactions lead to a lot more trading activity because traders feel more confident about completing their trades.
2025 saw the rise of verifiable machines.
This year marked key milestones in establishing Automata as the machine trust layer for provable execution across different Web3 verticals.
Looking back at our top highlights β
Excited to share this long-awaited episode!
We started with the evolution of MEV over the years, expanded on TOOL and how it effectively brings 1 second block times to Ethereum, while removing existing centralization vectors.
But most importantly, discussed what makes Ethereum so great and what can be improved.
Give it a listen, I think it was the best episode I've had so far :)
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Introducing TOOL: Trustless Orderflow Operations Layer
Making Ethereum 12x faster with 1-second execution confirmations. No protocol changes. No L2s.
Launching MVP in Q1 2025 with support from industry leaders.