Multiblock MEV opportunities & protections in dynamic AMMs

Matthew Willetts; Christian Harrington

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arXiv · 2404.15489

Multiblock MEV opportunities & protections in dynamic AMMs

Matthew Willetts·Christian Harrington

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Abstract

Maximal Extractable Value (MEV) in Constant Function Market Making is fairly well understood. Does having dynamic weights, as found in liquidity boostrap pools (LBPs), Temporal-function market makers (TFMMs), and Replicating market makers (RMMs), introduce new attack vectors? In this paper we explore how inter-block weight changes can be analogous to trades, and can potentially lead to a multi-block MEV attack. New inter-block protections required to guard against this new attack vector are analysed. We also carry our a raft of numerical simulations, more than 450 million potential attack scenarios, showing both successful attacks and successful defense.

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Matthew Willetts, Christian Harrington. 2024-04-23. Multiblock MEV opportunities & protections in dynamic AMMs. https://arxiv.org/abs/2404.15489

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