The Implementation and Evolution of MEV in the Sui Network

MEV (Maximum Extractable Value) has become a hot topic in the blockchain industry, involving transaction ordering and arbitrage opportunities. To ensure transparency, protect transactions, maintain network health, and reward participants, the Sui network has been implementing various improvement proposals and mechanisms to guide the development of MEV.

Design Principles

The MEV ecosystem on the Sui network is formed through the following key mechanisms:

1. Mechanism for submitting MEV transactions
2. The mechanism for releasing MEV opportunities
3. The mechanism for distributing MEV profits
4. Mechanism to Protect User Transactions

Overall priorities include:

• User trading protection takes priority over value extraction
• Network transparency is superior to offline transactions with verification nodes or relayers.
• Promote competition through priority gas auctions to curb system inefficiencies.
• Encourage the allocation of rewards to participants aligned with the ecosystem

Transaction Submission Mechanism

The priority gas auction ( PGA ) is the main transaction submission mechanism on the Sui network. Key drivers of PGA include:

• Transactions sorted by consensus are processed in the block
• Traders compete for priority through gas auctions.
• A higher consensus submission rate reduces the quantization effect but also narrows the PGA window.
• The PGA of non-congested objects is most important to the fastest seekers.
• Congestion objects may delay transaction execution, further amplifying the importance of PGA.

Currently, there are two mechanisms to direct transactions to specific upcoming Sui submissions:

1. Submit a batch of transactions through soft bundling
2. Amplify priority transactions through consensus

These mechanisms are designed to create a more efficient and fair competitive system.

Choose the Appropriate Trading Gas Price

The client should consider the following factors when determining the gas price for submitting a transaction:

1. Priority gas auction
2. Consensus Submission Amplification
3. Avoid congestion delays and cancellations

The gas price for executing and canceling transactions tracked by full nodes allows clients to use this information to determine the required gas price, thereby avoiding transaction delays with high probability.

Release Trading Information

Every transaction on the Sui network introduces potential profit opportunities. The lifecycle of a transaction begins with the client submission, goes through multiple steps, and is ultimately observed by third parties for its effects.

To achieve low-latency user transaction access, Sui is designing a system for direct streaming of consensus blocks. This speculative notification has the potential to significantly reduce the latency of transaction propagation.

Protecting User Transactions

User transactions need to be protected from front-running, sandwich attacks, and involuntary submission delays. Sui's transaction submission mechanism provides natural front protection, but new risks may arise with the introduction of new systems.

The Evolution of MEV in Sui

The MEV ecosystem of Sui is still in formation, and new mechanisms will be launched in the future. Currently, priority gas auctions and consensus amplification define the current system, while upcoming innovations such as time-lock encryption and Mysticeti fast paths will reshape transaction execution and security.

With the launch of these mechanisms, the MEV on the Sui network will continue to evolve, creating a more dynamic and transparent ecosystem.