Gas Fee Auction
live
Overview
Gas Fee Auction plugin implements the concepts outlined by Paradigm (See article).
This implementation introduces MEV tax mechanics that is expected to be efficient on the blockchains with competitive priority ordering, like OP Stack.
If effective, MEV tax lets the DEX to collect MEV in the form of extra swap fees. The idea behind this mechanics is simple and elegant: the swap fee is increased based on priorityFeePerGas property of the transaction. Arbitrageurs will have to compete for the block order by paying extra gas and thus we can separate them from the retail traders who do not pay for the transaction priority.
Key Features
- Experimental: The plugin implements theoretical concept and its side effects are not fully determined. Intended for the advanced DEX builders.
- Chain-specific: Only effective on chains that fit the requirements.
- Low gas overhead: Approx. 15K gas fees on every swap operation.