From aab24f29a0236ccbbd8b8770f6a54d45a3489043 Mon Sep 17 00:00:00 2001 From: bt3gl <1130416+bt3gl@users.noreply.github.com> Date: Sun, 3 Apr 2022 07:21:49 +0100 Subject: [PATCH] Update README.md --- keeperDAO/README.md | 54 ++++++++++++++++++++------------------------- 1 file changed, 24 insertions(+), 30 deletions(-) diff --git a/keeperDAO/README.md b/keeperDAO/README.md index 47d19ba..6b09045 100644 --- a/keeperDAO/README.md +++ b/keeperDAO/README.md @@ -1,4 +1,4 @@ -## KeeperDAO notes +## ♜ KeeperDAO notes
@@ -20,18 +20,18 @@ ### The Hiding Game * Gasless limit order system that sources liquidity from all means supported by KeeperDAO Keepers. -* If a user's order creates a MEV opportunity, the user will be reward with a share of the MEV profits in the form of ROOK. +* If a user's order creates a MEV opportunity, the user will be rewarded with a share of the MEV profits in the form of `ROOK'. ### The Hiding Vault -A generalized liquidation-mitigation lending and borrowing NFT product. +* A generalized liquidation-mitigation lending and borrowing NFT product. * The first platform supported by Hiding Vaults is Compound Finance. * Using a Hiding Vault mitigates both the risks and the impacts of the liquidation of users using Compound Finance. -* If a user's position is liquidated, the user will be reimbursed with a share of the liquidation profits in the form of ROOK. +* If a user's position is liquidated, the user will be reimbursed with a share of the liquidation profits in the form of `ROOK`. ### Liquidity Pools -* KeeperDAO offer five single-asset LP that yield ROOK tokens (ETH, WETH, USDC, renBTC, and DAI): users earn ROOK rewards based on the number of ROOK rewards allocated to the pool each quarter. +* KeeperDAO offers five single-asset LP that yield `ROOK` tokens (ETH, WETH, USDC, renBTC, and DAI): users earn `ROOK` rewards based on the number of `ROOK` rewards allocated to the pool each quarter.
@@ -42,14 +42,17 @@ A generalized liquidation-mitigation lending and borrowing NFT product.
-### How the blockchain works -* Each block in the blockchain contains a list of transactions in a particular order, enconding a sequence of updates to the blockchain sate (world state). -* Anyone can broadcast a transaction to the network, which means that the transaction is public. A broadcast is a request. In order for that request to be carried out, someone must place the transaction in a block and add the block to the blockchain. -* Anyone can listen for transactions being broadcast and gather them into a list. In order to a turn a list into a block, it needs to be validated. Validation creats a mathematical (cryptographic) proof that the state changes are consistent. -* In a proof-of-work blockchain, block producers are miners. In a proof-of-stake blockchain, they are validators. -* The act of converting a transaction into a block is called *settlement*. The process of block production is called *settlement layer* or *consensus layer*. +* Refers to profit that can be extracted from a transaction from the transaction originator needing priority or control over the ordering of that transacion in a block (*the arbitrage has 45 WETH of MEV*). +* [As may of 2021, around $3-4mil of MEV is being captured daily](https://explore.flashbots.net/). +* MEV exists on any blockchain and layers where there is a party responsible for transaction ordering (eg. validators, rollup providers). +* Extracted MEV = Successful MEV transactions + Successful MEV transactions gas fees + Failed MEV transactions gas fees +* Common MEV strategies are front-running, back-running, and sandwiching. +* MEV should accrue to the originator of the transaction, or of the transactions or protocols that create the MEV in the first place. +* Using KeeperDAO's **coordination layer**, we can capture and recycle the MEV before it can be extracted. -### Arbritage opportunity +
+ +### Arbitrage opportunity * Results from a difference in prices between the same asset, listed on different DEXes. * A transaction that makes the right swaps along the right arbritage route will end up with profit. @@ -57,7 +60,7 @@ A generalized liquidation-mitigation lending and borrowing NFT product. ### Keepers -* Bots that observe Ethereum, and other blockchains, to faciliate sorts of transactions, such as arbitrage, liquidations, auctions. +* Bots observe Ethereum, and other blockchains, to faciliate sorts of transactions, such as arbitrage, liquidations, auctions. * Automated agents that survey the state of the blockchain and compute all the different possibilitie in order to identifty transactions that can create profit. * Once Keepers have identified a valuable transaction, they will broadcast that to the network. Other keepers can copy and broadcast the same transaction with themselves as the originators. * MEV arises from the problem of "how can a keeper ensure that they are the one who gets a transaction settled first? @@ -65,25 +68,16 @@ A generalized liquidation-mitigation lending and borrowing NFT product. * Inside KeeperDAO, keepers don't need to compete - but coordinate and capture on-chain profits efficiently. DeFi users, protocols, market makers can bring their activity to KeeperDAO and gain a portion of the profits as a reward. -### Maximal extractable value - -* Refers to profit that can be extracted from a transaction from the transaction originator needing priority or control over the ordering of that transacion in a block (*the arbitrage has 45 WETH of MEV*). -* [As may of 2021, around $3-4mil of MEV is being captured daily](https://explore.flashbots.net/). -* MEV exists on any blockchain and layers where there is a party responsible for transaction ordering (eg. validators, rollup providers). -* Extracted MEV = Successful MEV transactions + Successful MEV transactions gas fees + Failed MEV transactions gas fees
-### ➡️ While it seems simple, MEV poses risks not only to the user but also to the consensus layer itself. The reorganisation of blocks, the reordering of transactions, and — even momentarily — the censorship of transactions can have profound impacts on the blockchain and breaks the assumptions of many applications. +### ➡️ MEV poses risks not only to the user but also to the consensus layer itself. The reorganisation of blocks, the reordering of transactions, and — even momentarily — the censorship of transactions can have profound impacts on the blockchain and breaks the assumptions of many applications. ### ➡️ Because block producers are able to prioritize transactions with higher gas fees, a bidding war between bots (who either try to arbitrage or front-run) can occur. This hurts ordinary users and DeFi platforms, because these bidding wars drive up gas fees (Priority Gas Auctions) and cause slippage and failed transactions -### MEV strategies -* Common MEV strategies are front-running, back-running, and sandwiching. -* MEV should accrue to the originator of the transaction, or of the transactions or protocols that create the MEV in the first place. -* Using KeeperDAO's **coordination layer**, we can capture and recycle the MEV before it can be extracted. +
#### Gas golfing @@ -112,12 +106,12 @@ A generalized liquidation-mitigation lending and borrowing NFT product. ## Documents of interest -* [docs page](https://docs.keeperdao.com/reference/) -* [forum page](https://forum.keeperdao.com/) -* [roadmap](https://www.keeperdao.com/files/roadmap.png) -* [motivational whitepaper](https://github.com/keeperdao/whitepaper) -* [technical whitepaper](https://www.keeperdao.com/files/gov-beigepaper.pdf) -* [blog page](https://blog.keeperdao.com/) +* [Docs page](https://docs.keeperdao.com/reference/) +* [Forum page](https://forum.keeperdao.com/) +* [Roadmap](https://www.keeperdao.com/files/roadmap.png) +* [Motivational whitepaper](https://github.com/keeperdao/whitepaper) +* [Technical whitepaper](https://www.keeperdao.com/files/gov-beigepaper.pdf) +* [Blog page](https://blog.keeperdao.com/) * [Medium blog](https://medium.com/keeperdao) * [The New Citadel: A vision for KeeperDAO](https://keeperdao-labs.notion.site/The-New-Citadel-A-Vision-for-KeeperDAO-125ed6222f4542d99d8e171ddbe2bc38) * [KeeperDAO twitter](https://twitter.com/Keeper_DAO)