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MEV often means extraction, but "Good MEV" exists in blockchain as well.
Here's a high level concept of @angstromxyz:
- 1. Using Uni V4 hooks, the pool is locked so only authorised validators can execute orders.
- 2. Any arbitrageurs can submit bids to the authorised validators and highest bidder wins.
- 3. The bid is distributed back to LP, the value that was previously captured by external searchers / builders.
- 4. Then, all the users trade order are gathered in a batch. Orders in the patch are executed in an uniform price discovered by a matching engine.
Therefore, there will be no point for frontrun because the price is uniform in the block anyway.
- 5. Pool is unlocked by v4 after (4) and open for general interaction.
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Quick thought :
This looks like a good hook usecase and infrastructure for protocols that want to protect their LPs and users from MEV, which gives them better yields and swap rates.
( Lock by hook > Internal bidding and returns > Unlock by hook)
However, I think the authorized searchers / validators would need to be run by the project team, since there's little incentive for 3rd parties to do this voluntarily.
(If I have misunderstood anything please correct me)

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