mev microstructure quiz
searcher X knows what the state of the chain will be after the next block some time period t before that information is public
how can X exercise their advantage?
how significant is the advantage?
how does the advantage grow as function of t/blocktime?
@snoopy_mev@ralexstokes yes to all plz
but, would be interesting over what’s out there to try take a blockchain /MEV spin on the topics
e.g. PGA in the mempool as a POMDP
There’s a few ways to trade this, one being just taking the 7day carry risk, another is to hold inventory on both sides, rebalancing every so often, depending on how mean-reverting the spread is. The best way would be to find a L1 borrow market, but is usually not available.
Often you see skewed market structure with bridgeable L2 tokens, usually theres token incentives offered on the L2 deploy of their protocol, causing sell flow from yield farmers compounding. You get more apes on L1, usually more liq there too if the protocol’s been around a while
In general, hoping to distinguish "upside" and "downside" volatility is mostly cope; wishful thinking.
Show me a thing that just went up 50% and I'll show you a thing that's now a lot more likely to go down a lot.
Throwing away half your data in a risk measure probably ain't it
is blockscout the only open source block explorer out there?
would be cool if we could crowdfund another evm-based block explorer that's closer to etherscan's usability and features