WEBVTT Kind: captions Language: en 00:00:00.000 --> 00:00:04.350 align:start position:0% foreign 00:00:04.350 --> 00:00:04.360 align:start position:0% 00:00:04.360 --> 00:00:13.509 align:start position:0% [Music] 00:00:13.509 --> 00:00:13.519 align:start position:0% 00:00:13.519 --> 00:00:16.670 align:start position:0% you<00:00:14.519> know<00:00:14.580> I<00:00:14.940> probably<00:00:15.179> don't<00:00:15.420> need<00:00:15.660> to<00:00:16.020> talk 00:00:16.670 --> 00:00:16.680 align:start position:0% you know I probably don't need to talk 00:00:16.680 --> 00:00:19.250 align:start position:0% you know I probably don't need to talk about<00:00:16.859> what<00:00:17.279> Mev<00:00:17.760> is<00:00:17.940> as<00:00:18.180> much<00:00:18.359> uh<00:00:18.779> given<00:00:19.140> that 00:00:19.250 --> 00:00:19.260 align:start position:0% about what Mev is as much uh given that 00:00:19.260 --> 00:00:21.170 align:start position:0% about what Mev is as much uh given that there<00:00:19.440> were<00:00:19.619> if<00:00:19.800> I<00:00:19.920> remember<00:00:20.039> right<00:00:20.340> 17<00:00:20.699> or<00:00:21.000> 18 00:00:21.170 --> 00:00:21.180 align:start position:0% there were if I remember right 17 or 18 00:00:21.180 --> 00:00:24.490 align:start position:0% there were if I remember right 17 or 18 talks<00:00:21.840> about<00:00:21.960> Mev<00:00:22.920> um<00:00:23.039> but<00:00:23.279> you<00:00:23.880> know<00:00:23.939> I<00:00:24.119> think 00:00:24.490 --> 00:00:24.500 align:start position:0% talks about Mev um but you know I think 00:00:24.500 --> 00:00:26.689 align:start position:0% talks about Mev um but you know I think in<00:00:25.500> the<00:00:25.740> spirit<00:00:25.920> of<00:00:26.160> trying<00:00:26.400> to<00:00:26.580> understand 00:00:26.689 --> 00:00:26.699 align:start position:0% in the spirit of trying to understand 00:00:26.699 --> 00:00:29.330 align:start position:0% in the spirit of trying to understand the<00:00:27.119> incentives<00:00:27.560> uh<00:00:28.560> hidden<00:00:28.859> in<00:00:28.920> a<00:00:29.160> lot<00:00:29.220> of 00:00:29.330 --> 00:00:29.340 align:start position:0% the incentives uh hidden in a lot of 00:00:29.340 --> 00:00:32.150 align:start position:0% the incentives uh hidden in a lot of these<00:00:29.580> these<00:00:29.939> systems<00:00:30.240> one<00:00:31.080> question<00:00:31.260> you 00:00:32.150 --> 00:00:32.160 align:start position:0% these these systems one question you 00:00:32.160 --> 00:00:33.889 align:start position:0% these these systems one question you might<00:00:32.340> ask<00:00:32.520> is<00:00:32.820> does<00:00:33.180> there<00:00:33.300> exist<00:00:33.600> sort<00:00:33.780> of 00:00:33.889 --> 00:00:33.899 align:start position:0% might ask is does there exist sort of 00:00:33.899 --> 00:00:35.870 align:start position:0% might ask is does there exist sort of some<00:00:34.079> type<00:00:34.260> of<00:00:34.380> formal<00:00:34.680> theory<00:00:34.980> for<00:00:35.160> Mev<00:00:35.579> does 00:00:35.870 --> 00:00:35.880 align:start position:0% some type of formal theory for Mev does 00:00:35.880 --> 00:00:37.490 align:start position:0% some type of formal theory for Mev does there<00:00:36.000> exist<00:00:36.300> some<00:00:36.420> type<00:00:36.660> of<00:00:36.840> mathematical 00:00:37.490 --> 00:00:37.500 align:start position:0% there exist some type of mathematical 00:00:37.500 --> 00:00:41.030 align:start position:0% there exist some type of mathematical structure<00:00:37.980> to<00:00:38.420> this<00:00:39.420> thing<00:00:39.600> that<00:00:39.960> seems<00:00:40.739> to<00:00:40.800> be 00:00:41.030 --> 00:00:41.040 align:start position:0% structure to this thing that seems to be 00:00:41.040 --> 00:00:43.910 align:start position:0% structure to this thing that seems to be you<00:00:41.579> know<00:00:41.700> Captivate<00:00:42.660> people's<00:00:43.140> imaginations 00:00:43.910 --> 00:00:43.920 align:start position:0% you know Captivate people's imaginations 00:00:43.920 --> 00:00:46.670 align:start position:0% you know Captivate people's imaginations yet<00:00:44.399> no<00:00:44.640> one<00:00:44.820> can<00:00:45.000> describe<00:00:45.420> it<00:00:45.540> and<00:00:46.079> so<00:00:46.320> I'm 00:00:46.670 --> 00:00:46.680 align:start position:0% yet no one can describe it and so I'm 00:00:46.680 --> 00:00:47.569 align:start position:0% yet no one can describe it and so I'm going<00:00:46.800> to<00:00:46.920> talk<00:00:47.040> a<00:00:47.160> little<00:00:47.280> bit<00:00:47.399> about 00:00:47.569 --> 00:00:47.579 align:start position:0% going to talk a little bit about 00:00:47.579 --> 00:00:49.610 align:start position:0% going to talk a little bit about different<00:00:48.120> ways<00:00:48.600> of<00:00:48.780> addressing<00:00:49.440> this 00:00:49.610 --> 00:00:49.620 align:start position:0% different ways of addressing this 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sort of measuring the cost of feudalism<00:00:58.980> so<00:00:59.340> that's<00:00:59.760> that's<00:01:00.480> sort<00:01:00.780> of<00:01:00.899> where 00:01:01.549 --> 00:01:01.559 align:start position:0% feudalism so that's that's sort of where 00:01:01.559 --> 00:01:03.170 align:start position:0% feudalism so that's that's sort of where the<00:01:01.680> title<00:01:01.980> comes<00:01:02.160> from<00:01:02.280> let's<00:01:02.699> start<00:01:02.879> with 00:01:03.170 --> 00:01:03.180 align:start position:0% the title comes from let's start with 00:01:03.180 --> 00:01:05.870 align:start position:0% the title comes from let's start with the<00:01:03.420> operative<00:01:04.019> definition<00:01:04.320> of<00:01:04.680> Mev<00:01:05.159> you<00:01:05.760> know 00:01:05.870 --> 00:01:05.880 align:start position:0% the operative definition of Mev you know 00:01:05.880 --> 00:01:07.490 align:start position:0% the operative definition of Mev you know when<00:01:06.060> you<00:01:06.240> see<00:01:06.360> it<00:01:06.479> like<00:01:06.720> the<00:01:06.900> of<00:01:07.140> course<00:01:07.260> the 00:01:07.490 --> 00:01:07.500 align:start position:0% when you see it like the of course the 00:01:07.500 --> 00:01:11.030 align:start position:0% when you see it like the of course the famous<00:01:07.740> Supreme<00:01:08.040> Court<00:01:08.520> ruling<00:01:09.240> on<00:01:09.540> porn<00:01:10.040> uh 00:01:11.030 --> 00:01:11.040 align:start position:0% famous Supreme Court ruling on porn uh 00:01:11.040 --> 00:01:13.609 align:start position:0% famous Supreme Court ruling on porn uh and<00:01:11.400> uh<00:01:11.640> you<00:01:12.360> know<00:01:12.479> Mev<00:01:12.840> comes<00:01:13.080> in<00:01:13.140> many<00:01:13.260> shapes 00:01:13.609 --> 00:01:13.619 align:start position:0% and uh you know Mev comes in many shapes 00:01:13.619 --> 00:01:15.590 align:start position:0% and uh you know Mev comes in many shapes and<00:01:13.740> sizes<00:01:14.040> uh<00:01:14.880> you<00:01:15.000> know<00:01:15.119> of<00:01:15.240> course<00:01:15.299> we<00:01:15.479> have 00:01:15.590 --> 00:01:15.600 align:start position:0% and sizes uh you know of course we have 00:01:15.600 --> 00:01:17.230 align:start position:0% and sizes uh you know of course we have everything<00:01:15.780> from<00:01:16.080> Sandwich<00:01:16.380> attacks 00:01:17.230 --> 00:01:17.240 align:start position:0% everything from Sandwich attacks 00:01:17.240 --> 00:01:20.330 align:start position:0% everything from Sandwich attacks liquidations<00:01:18.320> Arbitrage<00:01:19.320> nft<00:01:19.799> front<00:01:20.159> running 00:01:20.330 --> 00:01:20.340 align:start position:0% liquidations Arbitrage nft front running 00:01:20.340 --> 00:01:21.830 align:start position:0% liquidations Arbitrage nft front running and<00:01:20.700> cross<00:01:20.880> chain 00:01:21.830 --> 00:01:21.840 align:start position:0% and cross chain 00:01:21.840 --> 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and somehow<00:01:29.659> we<00:01:30.659> because<00:01:30.960> we<00:01:31.259> know<00:01:31.439> there<00:01:31.740> are 00:01:31.789 --> 00:01:31.799 align:start position:0% somehow we because we know there are 00:01:31.799 --> 00:01:34.010 align:start position:0% somehow we because we know there are many<00:01:31.979> examples<00:01:32.460> and<00:01:32.880> we<00:01:33.119> feel<00:01:33.299> like<00:01:33.540> we<00:01:33.840> can't 00:01:34.010 --> 00:01:34.020 align:start position:0% many examples and we feel like we can't 00:01:34.020 --> 00:01:35.690 align:start position:0% many examples and we feel like we can't enumerate<00:01:34.799> all<00:01:34.920> of<00:01:35.040> them<00:01:35.100> it<00:01:35.280> might<00:01:35.400> feel<00:01:35.520> like 00:01:35.690 --> 00:01:35.700 align:start position:0% enumerate all of them it might feel like 00:01:35.700 --> 00:01:38.569 align:start position:0% enumerate all of them it might feel like the<00:01:35.939> space<00:01:36.240> of<00:01:36.900> all<00:01:37.020> mevs<00:01:37.619> super<00:01:37.920> big<00:01:38.159> so<00:01:38.400> how 00:01:38.569 --> 00:01:38.579 align:start position:0% the space of all mevs super big so how 00:01:38.579 --> 00:01:40.429 align:start position:0% the space of all mevs super big so how do<00:01:38.700> you<00:01:38.759> analyze<00:01:39.180> it<00:01:39.299> you<00:01:39.659> know<00:01:39.720> I<00:01:39.900> know<00:01:40.259> there 00:01:40.429 --> 00:01:40.439 align:start position:0% do you analyze it you know I know there 00:01:40.439 --> 00:01:42.230 align:start position:0% do you analyze it you know I know there were<00:01:40.560> two<00:01:40.680> talks<00:01:41.040> yesterday<00:01:41.159> about<00:01:41.520> what<00:01:42.000> is 00:01:42.230 --> 00:01:42.240 align:start position:0% were two talks yesterday about what is 00:01:42.240 --> 00:01:44.990 align:start position:0% were two talks yesterday about what is and<00:01:42.420> isn't<00:01:42.960> uh<00:01:43.560> Mev<00:01:43.979> but<00:01:44.280> I<00:01:44.400> think<00:01:44.520> we're<00:01:44.880> going 00:01:44.990 --> 00:01:45.000 align:start position:0% and isn't uh Mev but I think we're going 00:01:45.000 --> 00:01:47.870 align:start position:0% and isn't uh Mev but I think we're going to<00:01:45.060> focus<00:01:45.299> on<00:01:45.740> uh<00:01:46.740> kind<00:01:46.979> of<00:01:47.100> an<00:01:47.520> operative 00:01:47.870 --> 00:01:47.880 align:start position:0% to focus on uh kind of an operative 00:01:47.880 --> 00:01:51.170 align:start position:0% to focus on uh kind of an operative definition<00:01:48.200> that<00:01:49.200> can<00:01:49.860> be<00:01:49.979> used<00:01:50.100> and 00:01:51.170 --> 00:01:51.180 align:start position:0% definition that can be used and 00:01:51.180 --> 00:01:53.990 align:start position:0% definition that can be used and uh<00:01:52.020> we<00:01:52.380> could<00:01:52.500> we<00:01:52.799> could<00:01:52.920> sort<00:01:53.100> of<00:01:53.159> say<00:01:53.340> Mev<00:01:53.820> is 00:01:53.990 --> 00:01:54.000 align:start position:0% uh we could we could sort of say Mev is 00:01:54.000 --> 00:01:56.210 align:start position:0% uh we could we could sort of say Mev is any<00:01:54.180> excess<00:01:54.540> value<00:01:54.840> that<00:01:55.439> can<00:01:55.560> be<00:01:55.680> captured<00:01:56.100> by 00:01:56.210 --> 00:01:56.220 align:start position:0% any excess value that can be captured by 00:01:56.220 --> 00:01:57.649 align:start position:0% any excess value that can be captured by validators 00:01:57.649 --> 00:01:57.659 align:start position:0% validators 00:01:57.659 --> 00:02:00.590 align:start position:0% validators by<00:01:58.500> reordering<00:01:59.159> transactions<00:01:59.759> strategically 00:02:00.590 --> 00:02:00.600 align:start position:0% by reordering transactions strategically 00:02:00.600 --> 00:02:03.109 align:start position:0% by reordering transactions strategically adding<00:02:01.020> or<00:02:01.140> removing<00:02:01.500> transactions<00:02:02.220> the<00:02:02.820> idea 00:02:03.109 --> 00:02:03.119 align:start position:0% adding or removing transactions the idea 00:02:03.119 --> 00:02:05.090 align:start position:0% adding or removing transactions the idea is<00:02:03.479> most<00:02:03.780> of<00:02:03.899> this<00:02:04.020> is<00:02:04.259> currently<00:02:04.500> managed<00:02:04.860> via 00:02:05.090 --> 00:02:05.100 align:start position:0% is most of this is currently managed via 00:02:05.100 --> 00:02:07.910 align:start position:0% is most of this is currently managed via off-chain<00:02:05.520> auction<00:02:05.820> so<00:02:06.119> people<00:02:06.299> bid<00:02:06.719> on 00:02:07.910 --> 00:02:07.920 align:start position:0% off-chain auction so people bid on 00:02:07.920 --> 00:02:10.850 align:start position:0% off-chain auction so people bid on transaction<00:02:08.520> priority<00:02:09.440> atomicity<00:02:10.440> you<00:02:10.800> know 00:02:10.850 --> 00:02:10.860 align:start position:0% transaction priority atomicity you know 00:02:10.860 --> 00:02:14.390 align:start position:0% transaction priority atomicity you know and<00:02:10.979> within<00:02:11.340> bundles<00:02:11.900> uh<00:02:12.900> and<00:02:13.560> you<00:02:13.980> know<00:02:14.099> if<00:02:14.160> we 00:02:14.390 --> 00:02:14.400 align:start position:0% and within bundles uh and you know if we 00:02:14.400 --> 00:02:15.890 align:start position:0% and within bundles uh and you know if we take<00:02:14.700> a<00:02:14.879> step<00:02:15.120> back<00:02:15.300> and<00:02:15.480> look<00:02:15.599> at<00:02:15.720> the<00:02:15.780> history 00:02:15.890 --> 00:02:15.900 align:start position:0% take a step back and look at the history 00:02:15.900 --> 00:02:18.170 align:start position:0% take a step back and look at the history of<00:02:16.140> ethereum<00:02:16.560> of<00:02:16.739> as<00:02:16.980> to<00:02:17.220> why<00:02:17.520> we<00:02:17.700> got<00:02:17.819> to<00:02:18.000> the 00:02:18.170 --> 00:02:18.180 align:start position:0% of ethereum of as to why we got to the 00:02:18.180 --> 00:02:20.030 align:start position:0% of ethereum of as to why we got to the auction<00:02:18.360> world 00:02:20.030 --> 00:02:20.040 align:start position:0% auction world 00:02:20.040 --> 00:02:22.250 align:start position:0% auction world um<00:02:20.099> part<00:02:20.340> of<00:02:20.459> the<00:02:20.580> reason<00:02:20.700> is<00:02:21.420> the<00:02:21.900> blockchain 00:02:22.250 --> 00:02:22.260 align:start position:0% um part of the reason is the blockchain 00:02:22.260 --> 00:02:23.809 align:start position:0% um part of the reason is the blockchain was<00:02:22.500> just<00:02:22.680> getting<00:02:22.860> spammed<00:02:23.340> by<00:02:23.459> people<00:02:23.640> doing 00:02:23.809 --> 00:02:23.819 align:start position:0% was just getting spammed by people doing 00:02:23.819 --> 00:02:25.729 align:start position:0% was just getting spammed by people doing liquidations<00:02:24.360> and<00:02:24.660> back<00:02:24.900> running<00:02:25.080> oracles 00:02:25.729 --> 00:02:25.739 align:start position:0% liquidations and back running oracles 00:02:25.739 --> 00:02:27.710 align:start position:0% liquidations and back running oracles and<00:02:26.040> instead<00:02:26.520> of<00:02:26.580> normal<00:02:26.879> users<00:02:27.360> being<00:02:27.540> able 00:02:27.710 --> 00:02:27.720 align:start position:0% and instead of normal users being able 00:02:27.720 --> 00:02:29.510 align:start position:0% and instead of normal users being able to<00:02:27.780> get<00:02:27.900> their<00:02:28.020> transactions<00:02:28.560> in<00:02:28.739> you'd<00:02:29.340> have 00:02:29.510 --> 00:02:29.520 align:start position:0% to get their transactions in you'd have 00:02:29.520 --> 00:02:31.430 align:start position:0% to get their transactions in you'd have the<00:02:29.819> you<00:02:30.060> know<00:02:30.120> entire<00:02:30.480> blocks<00:02:30.900> filled<00:02:31.200> with 00:02:31.430 --> 00:02:31.440 align:start position:0% the you know entire blocks filled with 00:02:31.440 --> 00:02:33.710 align:start position:0% the you know entire blocks filled with people's<00:02:32.340> you<00:02:32.580> know<00:02:32.760> spam<00:02:33.360> background 00:02:33.710 --> 00:02:33.720 align:start position:0% people's you know spam background 00:02:33.720 --> 00:02:35.570 align:start position:0% people's you know spam background transactions<00:02:34.260> on<00:02:34.560> the<00:02:34.680> other<00:02:34.800> hand<00:02:34.980> of<00:02:35.400> course 00:02:35.570 --> 00:02:35.580 align:start position:0% transactions on the other hand of course 00:02:35.580 --> 00:02:38.390 align:start position:0% transactions on the other hand of course as<00:02:35.940> the<00:02:36.360> previous<00:02:36.540> talk<00:02:36.900> was<00:02:37.440> focused<00:02:37.920> on<00:02:38.099> uh 00:02:38.390 --> 00:02:38.400 align:start position:0% as the previous talk was focused on uh 00:02:38.400 --> 00:02:40.130 align:start position:0% as the previous talk was focused on uh there's<00:02:38.940> a<00:02:39.120> lot<00:02:39.180> of<00:02:39.239> centralization<00:02:39.720> risk 00:02:40.130 --> 00:02:40.140 align:start position:0% there's a lot of centralization risk 00:02:40.140 --> 00:02:42.410 align:start position:0% there's a lot of centralization risk with<00:02:40.440> off-chain<00:02:40.920> auction<00:02:41.160> so<00:02:41.700> let's<00:02:41.940> you<00:02:42.300> know 00:02:42.410 --> 00:02:42.420 align:start position:0% with off-chain auction so let's you know 00:02:42.420 --> 00:02:45.050 align:start position:0% with off-chain auction so let's you know try<00:02:42.660> to<00:02:42.840> maybe<00:02:43.200> schematically<00:02:43.980> look<00:02:44.280> at<00:02:44.459> you 00:02:45.050 --> 00:02:45.060 align:start position:0% try to maybe schematically look at you 00:02:45.060 --> 00:02:47.869 align:start position:0% try to maybe schematically look at you know<00:02:45.120> what<00:02:45.420> how<00:02:45.780> Mev<00:02:46.260> works<00:02:46.620> we<00:02:47.040> have<00:02:47.280> users 00:02:47.869 --> 00:02:47.879 align:start position:0% know what how Mev works we have users 00:02:47.879 --> 00:02:49.670 align:start position:0% know what how Mev works we have users who<00:02:48.060> submit<00:02:48.360> transactions<00:02:49.019> which<00:02:49.319> are<00:02:49.500> the 00:02:49.670 --> 00:02:49.680 align:start position:0% who submit transactions which are the 00:02:49.680 --> 00:02:53.030 align:start position:0% who submit transactions which are the Deltas<00:02:50.099> we<00:02:50.879> have<00:02:51.000> a<00:02:51.180> mempool<00:02:51.540> uh<00:02:52.500> the<00:02:52.680> Searcher 00:02:53.030 --> 00:02:53.040 align:start position:0% Deltas we have a mempool uh the Searcher 00:02:53.040 --> 00:02:55.670 align:start position:0% Deltas we have a mempool uh the Searcher has<00:02:53.879> sort<00:02:54.180> of<00:02:54.239> their<00:02:54.420> own<00:02:54.660> view<00:02:55.080> of<00:02:55.560> the 00:02:55.670 --> 00:02:55.680 align:start position:0% has sort of their own view of the 00:02:55.680 --> 00:02:57.050 align:start position:0% has sort of their own view of the mempool<00:02:56.040> and<00:02:56.220> maybe<00:02:56.340> they<00:02:56.580> have<00:02:56.700> some 00:02:57.050 --> 00:02:57.060 align:start position:0% mempool and maybe they have some 00:02:57.060 --> 00:02:58.970 align:start position:0% mempool and maybe they have some transactions<00:02:57.900> that<00:02:58.080> are<00:02:58.260> directly<00:02:58.620> given<00:02:58.920> to 00:02:58.970 --> 00:02:58.980 align:start position:0% transactions that are directly given to 00:02:58.980 --> 00:03:01.430 align:start position:0% transactions that are directly given to them<00:02:59.580> which<00:03:00.420> you<00:03:00.780> know<00:03:00.959> people<00:03:01.080> would<00:03:01.260> call 00:03:01.430 --> 00:03:01.440 align:start position:0% them which you know people would call 00:03:01.440 --> 00:03:03.410 align:start position:0% them which you know people would call Private<00:03:01.739> order<00:03:01.860> flow<00:03:02.280> and<00:03:02.700> then<00:03:02.819> the<00:03:03.060> Searcher 00:03:03.410 --> 00:03:03.420 align:start position:0% Private order flow and then the Searcher 00:03:03.420 --> 00:03:07.190 align:start position:0% Private order flow and then the Searcher sends<00:03:03.840> their<00:03:04.260> bundle<00:03:05.099> which<00:03:05.879> uh<00:03:06.480> they're 00:03:07.190 --> 00:03:07.200 align:start position:0% sends their bundle which uh they're 00:03:07.200 --> 00:03:08.809 align:start position:0% sends their bundle which uh they're willing<00:03:07.500> to<00:03:07.560> pay<00:03:07.680> for<00:03:07.860> to<00:03:08.160> the<00:03:08.340> validator<00:03:08.640> and 00:03:08.809 --> 00:03:08.819 align:start position:0% willing to pay for to the validator and 00:03:08.819 --> 00:03:10.130 align:start position:0% willing to pay for to the validator and the<00:03:08.879> validator<00:03:09.180> added<00:03:09.540> to<00:03:09.660> the<00:03:09.780> block<00:03:09.840> the 00:03:10.130 --> 00:03:10.140 align:start position:0% the validator added to the block the 00:03:10.140 --> 00:03:12.050 align:start position:0% the validator added to the block the philosophical<00:03:10.620> question<00:03:10.920> here<00:03:11.159> though<00:03:11.340> is 00:03:12.050 --> 00:03:12.060 align:start position:0% philosophical question here though is 00:03:12.060 --> 00:03:14.509 align:start position:0% philosophical question here though is how<00:03:12.540> do<00:03:12.659> we<00:03:12.720> know<00:03:12.900> value<00:03:13.260> captured<00:03:13.800> by<00:03:13.920> Mev<00:03:14.400> is 00:03:14.509 --> 00:03:14.519 align:start position:0% how do we know value captured by Mev is 00:03:14.519 --> 00:03:17.449 align:start position:0% how do we know value captured by Mev is excessive<00:03:15.120> or<00:03:15.599> in<00:03:16.019> a<00:03:16.200> notion<00:03:16.560> of<00:03:16.739> excess<00:03:17.159> you 00:03:17.449 --> 00:03:17.459 align:start position:0% excessive or in a notion of excess you 00:03:17.459 --> 00:03:19.910 align:start position:0% excessive or in a notion of excess you know<00:03:17.580> in<00:03:17.819> this<00:03:18.420> sort<00:03:18.900> of<00:03:19.019> first<00:03:19.260> definition<00:03:19.560> I 00:03:19.910 --> 00:03:19.920 align:start position:0% know in this sort of first definition I 00:03:19.920 --> 00:03:23.030 align:start position:0% know in this sort of first definition I said<00:03:20.040> any<00:03:20.340> excess<00:03:20.700> value<00:03:21.000> well<00:03:21.379> how<00:03:22.379> excessive 00:03:23.030 --> 00:03:23.040 align:start position:0% said any excess value well how excessive 00:03:23.040 --> 00:03:25.610 align:start position:0% said any excess value well how excessive is<00:03:23.280> excess<00:03:23.760> describing<00:03:24.480> value<00:03:24.720> Flows<00:03:25.140> In<00:03:25.200> Mev 00:03:25.610 --> 00:03:25.620 align:start position:0% is excess describing value Flows In Mev 00:03:25.620 --> 00:03:27.530 align:start position:0% is excess describing value Flows In Mev is<00:03:25.739> actually<00:03:25.860> quite<00:03:26.099> difficult<00:03:26.400> so<00:03:27.060> in<00:03:27.360> in 00:03:27.530 --> 00:03:27.540 align:start position:0% is actually quite difficult so in in 00:03:27.540 --> 00:03:29.330 align:start position:0% is actually quite difficult so in in algorithmic<00:03:28.080> Game<00:03:28.260> Theory<00:03:28.560> you<00:03:28.800> usually<00:03:29.159> have 00:03:29.330 --> 00:03:29.340 align:start position:0% algorithmic Game Theory you usually have 00:03:29.340 --> 00:03:31.309 align:start position:0% algorithmic Game Theory you usually have two<00:03:29.640> main<00:03:29.879> ways<00:03:30.300> of<00:03:30.480> thinking<00:03:30.959> about<00:03:31.080> the 00:03:31.309 --> 00:03:31.319 align:start position:0% two main ways of thinking about the 00:03:31.319 --> 00:03:34.130 align:start position:0% two main ways of thinking about the world<00:03:31.459> one<00:03:32.459> is<00:03:32.819> optimizing<00:03:33.480> social<00:03:33.659> welfare 00:03:34.130 --> 00:03:34.140 align:start position:0% world one is optimizing social welfare 00:03:34.140 --> 00:03:36.710 align:start position:0% world one is optimizing social welfare social<00:03:34.500> welfare<00:03:34.980> means<00:03:35.340> if<00:03:36.000> everyone<00:03:36.239> has 00:03:36.710 --> 00:03:36.720 align:start position:0% social welfare means if everyone has 00:03:36.720 --> 00:03:38.990 align:start position:0% social welfare means if everyone has some<00:03:37.200> notion<00:03:37.500> of<00:03:37.620> utility<00:03:37.980> some<00:03:38.400> notion<00:03:38.760> of 00:03:38.990 --> 00:03:39.000 align:start position:0% some notion of utility some notion of 00:03:39.000 --> 00:03:41.449 align:start position:0% some notion of utility some notion of how<00:03:39.659> happy<00:03:39.780> they<00:03:40.019> are<00:03:40.200> with<00:03:40.319> the<00:03:40.500> world<00:03:40.620> you 00:03:41.449 --> 00:03:41.459 align:start position:0% how happy they are with the world you 00:03:41.459 --> 00:03:43.369 align:start position:0% how happy they are with the world you want<00:03:41.580> to<00:03:41.760> maximize<00:03:42.239> the<00:03:42.540> sum<00:03:42.720> of<00:03:43.019> everyone's 00:03:43.369 --> 00:03:43.379 align:start position:0% want to maximize the sum of everyone's 00:03:43.379 --> 00:03:46.430 align:start position:0% want to maximize the sum of everyone's utilities<00:03:43.799> on<00:03:44.280> the<00:03:44.340> other<00:03:44.400> hand<00:03:44.580> revenue<00:03:45.440> is 00:03:46.430 --> 00:03:46.440 align:start position:0% utilities on the other hand revenue is 00:03:46.440 --> 00:03:49.250 align:start position:0% utilities on the other hand revenue is you<00:03:46.739> know<00:03:46.799> the<00:03:47.099> the<00:03:47.340> the<00:03:47.580> person<00:03:48.360> selling<00:03:48.959> the 00:03:49.250 --> 00:03:49.260 align:start position:0% you know the the the person selling the 00:03:49.260 --> 00:03:50.050 align:start position:0% you know the the the person selling the good 00:03:50.050 --> 00:03:50.060 align:start position:0% good 00:03:50.060 --> 00:03:52.490 align:start position:0% good uh<00:03:51.060> you<00:03:51.420> know<00:03:51.540> maximizing<00:03:52.019> how<00:03:52.200> much<00:03:52.319> they 00:03:52.490 --> 00:03:52.500 align:start position:0% uh you know maximizing how much they 00:03:52.500 --> 00:03:55.610 align:start position:0% uh you know maximizing how much they earn<00:03:52.860> and<00:03:53.280> and<00:03:53.459> then<00:03:53.700> in<00:03:54.260> cryptocurrency<00:03:55.260> it's 00:03:55.610 --> 00:03:55.620 align:start position:0% earn and and then in cryptocurrency it's 00:03:55.620 --> 00:03:57.470 align:start position:0% earn and and then in cryptocurrency it's actually<00:03:55.799> interesting<00:03:56.400> that<00:03:56.700> you<00:03:57.060> have<00:03:57.420> to 00:03:57.470 --> 00:03:57.480 align:start position:0% actually interesting that you have to 00:03:57.480 --> 00:04:00.410 align:start position:0% actually interesting that you have to optimize<00:03:57.900> both<00:03:58.140> jointly<00:03:58.680> so<00:03:59.519> obviously<00:04:00.000> user 00:04:00.410 --> 00:04:00.420 align:start position:0% optimize both jointly so obviously user 00:04:00.420 --> 00:04:02.210 align:start position:0% optimize both jointly so obviously user welfare<00:04:00.780> is<00:04:01.019> important<00:04:01.319> for<00:04:01.500> the<00:04:01.799> success<00:04:02.099> of 00:04:02.210 --> 00:04:02.220 align:start position:0% welfare is important for the success of 00:04:02.220 --> 00:04:03.289 align:start position:0% welfare is important for the success of any<00:04:02.340> network 00:04:03.289 --> 00:04:03.299 align:start position:0% any network 00:04:03.299 --> 00:04:04.850 align:start position:0% any network I<00:04:03.780> don't<00:04:03.840> need<00:04:03.959> to<00:04:04.080> really<00:04:04.200> convince<00:04:04.560> anyone 00:04:04.850 --> 00:04:04.860 align:start position:0% I don't need to really convince anyone 00:04:04.860 --> 00:04:07.190 align:start position:0% I don't need to really convince anyone of<00:04:05.040> that<00:04:05.159> but<00:04:06.060> validator<00:04:06.540> Revenue<00:04:06.959> being 00:04:07.190 --> 00:04:07.200 align:start position:0% of that but validator Revenue being 00:04:07.200 --> 00:04:08.630 align:start position:0% of that but validator Revenue being optimized<00:04:07.739> is<00:04:07.860> actually<00:04:08.099> important<00:04:08.459> for 00:04:08.630 --> 00:04:08.640 align:start position:0% optimized is actually important for 00:04:08.640 --> 00:04:10.550 align:start position:0% optimized is actually important for Economic<00:04:09.060> Security<00:04:09.239> if<00:04:09.540> validators<00:04:10.200> are<00:04:10.439> not 00:04:10.550 --> 00:04:10.560 align:start position:0% Economic Security if validators are not 00:04:10.560 --> 00:04:13.369 align:start position:0% Economic Security if validators are not making<00:04:10.739> sufficient<00:04:11.340> income<00:04:12.180> from<00:04:12.360> it<00:04:12.540> then 00:04:13.369 --> 00:04:13.379 align:start position:0% making sufficient income from it then 00:04:13.379 --> 00:04:15.470 align:start position:0% making sufficient income from it then they're<00:04:13.980> unable<00:04:14.340> to<00:04:14.519> to<00:04:14.760> Really<00:04:15.000> secure<00:04:15.299> the 00:04:15.470 --> 00:04:15.480 align:start position:0% they're unable to to Really secure the 00:04:15.480 --> 00:04:17.930 align:start position:0% they're unable to to Really secure the network<00:04:15.599> and<00:04:16.440> in<00:04:16.919> decentralized<00:04:17.579> networks 00:04:17.930 --> 00:04:17.940 align:start position:0% network and in decentralized networks 00:04:17.940 --> 00:04:19.789 align:start position:0% network and in decentralized networks versus<00:04:18.060> centralized<00:04:18.600> networks<00:04:19.079> these<00:04:19.680> are 00:04:19.789 --> 00:04:19.799 align:start position:0% versus centralized networks these are 00:04:19.799 --> 00:04:21.830 align:start position:0% versus centralized networks these are two<00:04:19.919> competing<00:04:20.340> goals<00:04:20.639> and<00:04:20.760> I<00:04:20.940> think<00:04:21.060> the<00:04:21.660> one 00:04:21.830 --> 00:04:21.840 align:start position:0% two competing goals and I think the one 00:04:21.840 --> 00:04:23.930 align:start position:0% two competing goals and I think the one reason<00:04:22.079> there's<00:04:22.380> a<00:04:22.740> broad<00:04:22.919> view<00:04:23.280> of<00:04:23.639> how 00:04:23.930 --> 00:04:23.940 align:start position:0% reason there's a broad view of how 00:04:23.940 --> 00:04:25.730 align:start position:0% reason there's a broad view of how Theory<00:04:24.419> you<00:04:24.720> know<00:04:24.780> algorithmic<00:04:25.259> Game<00:04:25.440> Theory 00:04:25.730 --> 00:04:25.740 align:start position:0% Theory you know algorithmic Game Theory 00:04:25.740 --> 00:04:28.610 align:start position:0% Theory you know algorithmic Game Theory it's<00:04:26.580> different<00:04:26.940> for<00:04:27.240> crypto<00:04:27.660> is<00:04:28.259> that<00:04:28.440> you 00:04:28.610 --> 00:04:28.620 align:start position:0% it's different for crypto is that you 00:04:28.620 --> 00:04:30.890 align:start position:0% it's different for crypto is that you have<00:04:28.740> to<00:04:28.919> sort<00:04:29.160> of<00:04:29.280> balance<00:04:30.060> these<00:04:30.360> two<00:04:30.479> goals 00:04:30.890 --> 00:04:30.900 align:start position:0% have to sort of balance these two goals 00:04:30.900 --> 00:04:32.870 align:start position:0% have to sort of balance these two goals instead<00:04:31.259> of<00:04:31.440> trying<00:04:32.040> to<00:04:32.160> optimize<00:04:32.520> one<00:04:32.759> of 00:04:32.870 --> 00:04:32.880 align:start position:0% instead of trying to optimize one of 00:04:32.880 --> 00:04:33.890 align:start position:0% instead of trying to optimize one of them 00:04:33.890 --> 00:04:33.900 align:start position:0% them 00:04:33.900 --> 00:04:36.350 align:start position:0% them so<00:04:34.560> what<00:04:34.919> pieces<00:04:35.220> are<00:04:35.400> sort<00:04:35.580> of<00:04:35.699> missing<00:04:36.000> so 00:04:36.350 --> 00:04:36.360 align:start position:0% so what pieces are sort of missing so 00:04:36.360 --> 00:04:38.210 align:start position:0% so what pieces are sort of missing so how<00:04:36.600> would<00:04:36.780> we<00:04:36.960> kind<00:04:37.199> of<00:04:37.259> describe<00:04:37.680> welfare<00:04:38.040> as 00:04:38.210 --> 00:04:38.220 align:start position:0% how would we kind of describe welfare as 00:04:38.220 --> 00:04:40.790 align:start position:0% how would we kind of describe welfare as how<00:04:38.460> would<00:04:38.580> we<00:04:38.759> describe<00:04:39.180> Revenue 00:04:40.790 --> 00:04:40.800 align:start position:0% how would we describe Revenue 00:04:40.800 --> 00:04:43.129 align:start position:0% how would we describe Revenue um<00:04:40.860> you<00:04:41.160> know<00:04:41.220> one<00:04:41.820> thing<00:04:42.000> is<00:04:42.360> understanding 00:04:43.129 --> 00:04:43.139 align:start position:0% um you know one thing is understanding 00:04:43.139 --> 00:04:45.170 align:start position:0% um you know one thing is understanding the<00:04:43.380> user's<00:04:43.740> utilities<00:04:44.160> what<00:04:44.699> is<00:04:44.820> the<00:04:44.940> user 00:04:45.170 --> 00:04:45.180 align:start position:0% the user's utilities what is the user 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thing<00:04:50.280> is<00:04:50.460> some<00:04:50.639> notion<00:04:50.940> of<00:04:51.180> transaction<00:04:51.720> fees 00:04:52.129 --> 00:04:52.139 align:start position:0% thing is some notion of transaction fees 00:04:52.139 --> 00:04:53.810 align:start position:0% thing is some notion of transaction fees and<00:04:52.259> payments<00:04:52.680> that<00:04:52.979> you<00:04:53.460> know<00:04:53.520> the 00:04:53.810 --> 00:04:53.820 align:start position:0% and payments that you know the 00:04:53.820 --> 00:04:56.150 align:start position:0% and payments that you know the distribution<00:04:54.240> of<00:04:54.660> payment<00:04:55.080> sizes<00:04:55.560> that<00:04:55.860> users 00:04:56.150 --> 00:04:56.160 align:start position:0% distribution of payment sizes that users 00:04:56.160 --> 00:04:58.370 align:start position:0% distribution of payment sizes that users are<00:04:56.280> willing<00:04:56.580> to<00:04:56.699> handle<00:04:57.240> and<00:04:57.840> the<00:04:58.020> last<00:04:58.139> thing 00:04:58.370 --> 00:04:58.380 align:start position:0% are willing to handle and the last thing 00:04:58.380 --> 00:05:01.370 align:start position:0% are willing to handle and the last thing is<00:04:58.740> an<00:04:59.699> understanding<00:05:00.120> of<00:05:00.240> how<00:05:00.600> an<00:05:00.840> Auctioneer 00:05:01.370 --> 00:05:01.380 align:start position:0% is an understanding of how an Auctioneer 00:05:01.380 --> 00:05:04.909 align:start position:0% is an understanding of how an Auctioneer so<00:05:01.860> in<00:05:02.340> flashbots<00:05:02.940> or<00:05:03.360> you<00:05:03.720> know<00:05:03.840> in<00:05:03.900> PBS<00:05:04.320> how 00:05:04.909 --> 00:05:04.919 align:start position:0% so in flashbots or you know in PBS how 00:05:04.919 --> 00:05:07.070 align:start position:0% so in flashbots or you know in PBS how they<00:05:05.100> allocate<00:05:05.460> block<00:05:05.639> space<00:05:05.880> is<00:05:06.180> to<00:05:06.720> users 00:05:07.070 --> 00:05:07.080 align:start position:0% they allocate block space is to users 00:05:07.080 --> 00:05:09.110 align:start position:0% they allocate block space is to users and<00:05:07.440> that<00:05:07.740> that<00:05:08.220> last<00:05:08.520> part<00:05:08.699> is<00:05:08.880> actually 00:05:09.110 --> 00:05:09.120 align:start position:0% and that that last part is actually 00:05:09.120 --> 00:05:11.570 align:start position:0% and that that last part is actually quite<00:05:09.479> complicated<00:05:09.960> and<00:05:10.440> these<00:05:11.220> three<00:05:11.340> things 00:05:11.570 --> 00:05:11.580 align:start position:0% quite complicated and these three things 00:05:11.580 --> 00:05:13.129 align:start position:0% quite complicated and these three things are<00:05:11.759> quite<00:05:11.940> entangled<00:05:12.419> when<00:05:12.600> you<00:05:12.780> want<00:05:12.840> to<00:05:13.020> try 00:05:13.129 --> 00:05:13.139 align:start position:0% are quite entangled when you want to try 00:05:13.139 --> 00:05:14.450 align:start position:0% are quite entangled when you want to try to<00:05:13.259> write<00:05:13.380> a<00:05:13.500> mathematical<00:05:13.919> theory<00:05:14.220> for<00:05:14.340> me 00:05:14.450 --> 00:05:14.460 align:start position:0% to write a mathematical theory for me 00:05:14.460 --> 00:05:17.749 align:start position:0% to write a mathematical theory for me being<00:05:15.180> and<00:05:16.020> these<00:05:16.500> sort<00:05:16.680> of<00:05:16.800> things<00:05:17.400> actually 00:05:17.749 --> 00:05:17.759 align:start position:0% being and these sort of things actually 00:05:17.759 --> 00:05:19.670 align:start position:0% being and these sort of things actually depend<00:05:18.240> a<00:05:18.479> lot<00:05:18.600> on<00:05:18.900> the<00:05:19.020> application<00:05:19.380> right 00:05:19.670 --> 00:05:19.680 align:start position:0% depend a lot on the application right 00:05:19.680 --> 00:05:22.790 align:start position:0% depend a lot on the application right the<00:05:20.040> user's<00:05:20.460> utility<00:05:20.820> for<00:05:21.300> minting<00:05:22.020> in<00:05:22.199> nft<00:05:22.500> is 00:05:22.790 --> 00:05:22.800 align:start position:0% the user's utility for minting in nft is 00:05:22.800 --> 00:05:24.850 align:start position:0% the user's utility for minting in nft is extremely<00:05:23.280> different<00:05:23.520> for<00:05:23.940> a<00:05:24.060> user's<00:05:24.479> utility 00:05:24.850 --> 00:05:24.860 align:start position:0% extremely different for a user's utility 00:05:24.860 --> 00:05:28.550 align:start position:0% extremely different for a user's utility for<00:05:25.860> borrowing<00:05:26.759> uh<00:05:27.660> against<00:05:27.840> some<00:05:28.139> collateral 00:05:28.550 --> 00:05:28.560 align:start position:0% for borrowing uh against some collateral 00:05:28.560 --> 00:05:30.950 align:start position:0% for borrowing uh against some collateral uh<00:05:29.160> and<00:05:29.460> inevitably<00:05:30.300> that<00:05:30.479> means<00:05:30.720> that<00:05:30.840> the 00:05:30.950 --> 00:05:30.960 align:start position:0% uh and inevitably that means that the 00:05:30.960 --> 00:05:32.510 align:start position:0% uh and inevitably that means that the allocation<00:05:31.380> mechanism<00:05:31.800> should<00:05:32.100> somehow<00:05:32.340> be 00:05:32.510 --> 00:05:32.520 align:start position:0% allocation mechanism should somehow be 00:05:32.520 --> 00:05:34.610 align:start position:0% allocation mechanism should somehow be tied<00:05:32.699> to<00:05:32.880> that<00:05:33.000> okay<00:05:33.479> so<00:05:33.840> let's<00:05:33.960> let's<00:05:34.199> try<00:05:34.440> to 00:05:34.610 --> 00:05:34.620 align:start position:0% tied to that okay so let's let's try to 00:05:34.620 --> 00:05:37.010 align:start position:0% tied to that okay so let's let's try to do<00:05:34.979> kind<00:05:35.280> of<00:05:35.340> like<00:05:35.520> the<00:05:35.820> eli5<00:05:36.419> simple<00:05:36.720> version 00:05:37.010 --> 00:05:37.020 align:start position:0% do kind of like the eli5 simple version 00:05:37.020 --> 00:05:38.029 align:start position:0% do kind of like the eli5 simple version of<00:05:37.259> those 00:05:38.029 --> 00:05:38.039 align:start position:0% of those 00:05:38.039 --> 00:05:41.090 align:start position:0% of those which<00:05:38.460> is<00:05:38.699> uh<00:05:39.240> you<00:05:39.840> know<00:05:39.900> we<00:05:40.320> have<00:05:40.440> a<00:05:40.680> notion<00:05:40.979> of 00:05:41.090 --> 00:05:41.100 align:start position:0% which is uh you know we have a notion of 00:05:41.100 --> 00:05:43.670 align:start position:0% which is uh you know we have a notion of block<00:05:41.280> space<00:05:41.580> which<00:05:42.539> is<00:05:42.720> sort<00:05:43.020> of<00:05:43.080> a<00:05:43.199> notion<00:05:43.560> of 00:05:43.670 --> 00:05:43.680 align:start position:0% block space which is sort of a notion of 00:05:43.680 --> 00:05:46.249 align:start position:0% block space which is sort of a notion of Max<00:05:44.160> number<00:05:44.520> of<00:05:44.699> transactions<00:05:45.300> or<00:05:45.539> slots<00:05:45.960> or 00:05:46.249 --> 00:05:46.259 align:start position:0% Max number of transactions or slots or 00:05:46.259 --> 00:05:48.529 align:start position:0% Max number of transactions or slots or size<00:05:46.560> or<00:05:46.860> gas<00:05:47.100> you<00:05:47.400> can<00:05:47.520> choose<00:05:47.820> a<00:05:47.940> unit<00:05:48.060> but 00:05:48.529 --> 00:05:48.539 align:start position:0% size or gas you can choose a unit but 00:05:48.539 --> 00:05:50.570 align:start position:0% size or gas you can choose a unit but for<00:05:49.080> Simplicity<00:05:49.500> just<00:05:49.919> assume<00:05:50.280> they're<00:05:50.400> sort 00:05:50.570 --> 00:05:50.580 align:start position:0% for Simplicity just assume they're sort 00:05:50.580 --> 00:05:53.029 align:start position:0% for Simplicity just assume they're sort of<00:05:50.639> fixed<00:05:51.120> number<00:05:51.240> of<00:05:51.419> units<00:05:52.139> there's<00:05:52.680> sort<00:05:52.919> of 00:05:53.029 --> 00:05:53.039 align:start position:0% of fixed number of units there's sort of 00:05:53.039 --> 00:05:55.070 align:start position:0% of fixed number of units there's sort of a<00:05:53.160> notion<00:05:53.460> of<00:05:53.639> a<00:05:53.820> binary<00:05:54.240> allocation<00:05:54.720> to<00:05:54.960> a 00:05:55.070 --> 00:05:55.080 align:start position:0% a notion of a binary allocation to a 00:05:55.080 --> 00:05:57.050 align:start position:0% a notion of a binary allocation to a user<00:05:55.320> of<00:05:55.440> whether<00:05:55.620> a<00:05:55.919> particular<00:05:56.220> user<00:05:56.639> gets<00:05:56.940> a 00:05:57.050 --> 00:05:57.060 align:start position:0% user of whether a particular user gets a 00:05:57.060 --> 00:05:58.969 align:start position:0% user of whether a particular user gets a particular<00:05:57.360> slot<00:05:57.780> the<00:05:58.259> users<00:05:58.560> have<00:05:58.800> the 00:05:58.969 --> 00:05:58.979 align:start position:0% particular slot the users have the 00:05:58.979 --> 00:06:01.550 align:start position:0% particular slot the users have the utility<00:05:59.220> functions<00:06:00.180> I'm<00:06:00.600> unspecifying<00:06:01.380> the 00:06:01.550 --> 00:06:01.560 align:start position:0% utility functions I'm unspecifying the 00:06:01.560 --> 00:06:03.170 align:start position:0% utility functions I'm unspecifying the domain<00:06:01.860> and<00:06:02.039> range<00:06:02.280> because<00:06:02.520> of<00:06:02.759> course<00:06:02.880> it's 00:06:03.170 --> 00:06:03.180 align:start position:0% domain and range because of course it's 00:06:03.180 --> 00:06:05.029 align:start position:0% domain and range because of course it's actually<00:06:03.479> quite<00:06:03.780> complicated<00:06:04.320> in<00:06:04.560> a<00:06:04.680> world<00:06:04.800> of 00:06:05.029 --> 00:06:05.039 align:start position:0% actually quite complicated in a world of 00:06:05.039 --> 00:06:06.969 align:start position:0% actually quite complicated in a world of cross-chain<00:06:05.460> bridging 00:06:06.969 --> 00:06:06.979 align:start position:0% cross-chain bridging 00:06:06.979 --> 00:06:10.790 align:start position:0% cross-chain bridging and<00:06:07.979> we<00:06:08.820> see<00:06:09.000> here<00:06:09.240> that<00:06:09.600> social<00:06:10.080> welfare<00:06:10.620> is 00:06:10.790 --> 00:06:10.800 align:start position:0% and we see here that social welfare is 00:06:10.800 --> 00:06:13.610 align:start position:0% and we see here that social welfare is defined<00:06:11.100> as<00:06:11.280> sort<00:06:11.460> of<00:06:11.580> the<00:06:12.120> expected<00:06:12.720> total 00:06:13.610 --> 00:06:13.620 align:start position:0% defined as sort of the expected total 00:06:13.620 --> 00:06:15.409 align:start position:0% defined as sort of the expected total utility<00:06:14.039> of<00:06:14.280> all<00:06:14.460> the<00:06:14.580> users<00:06:14.820> given<00:06:15.240> an 00:06:15.409 --> 00:06:15.419 align:start position:0% utility of all the users given an 00:06:15.419 --> 00:06:18.409 align:start position:0% utility of all the users given an allocation<00:06:15.780> so<00:06:16.020> these<00:06:16.320> X<00:06:16.560> variables<00:06:17.460> are 00:06:18.409 --> 00:06:18.419 align:start position:0% allocation so these X variables are 00:06:18.419 --> 00:06:20.510 align:start position:0% allocation so these X variables are effectively<00:06:19.020> whether<00:06:19.500> that<00:06:19.800> slot<00:06:20.160> is<00:06:20.280> given 00:06:20.510 --> 00:06:20.520 align:start position:0% effectively whether that slot is given 00:06:20.520 --> 00:06:22.070 align:start position:0% effectively whether that slot is given to<00:06:20.639> a<00:06:20.759> certain<00:06:20.880> person<00:06:21.060> then<00:06:21.360> this<00:06:21.600> is<00:06:21.720> sort<00:06:21.960> of 00:06:22.070 --> 00:06:22.080 align:start position:0% to a certain person then this is sort of 00:06:22.080 --> 00:06:24.350 align:start position:0% to a certain person then this is sort of measuring<00:06:22.740> their<00:06:22.860> sort<00:06:23.100> of<00:06:23.220> net<00:06:23.520> happiness 00:06:24.350 --> 00:06:24.360 align:start position:0% measuring their sort of net happiness 00:06:24.360 --> 00:06:25.670 align:start position:0% measuring their sort of net happiness let's<00:06:24.780> say 00:06:25.670 --> 00:06:25.680 align:start position:0% let's say 00:06:25.680 --> 00:06:28.370 align:start position:0% let's say uh<00:06:26.520> Revenue<00:06:26.880> however<00:06:27.300> is<00:06:27.600> just<00:06:27.780> the<00:06:28.020> expected 00:06:28.370 --> 00:06:28.380 align:start position:0% uh Revenue however is just the expected 00:06:28.380 --> 00:06:29.930 align:start position:0% uh Revenue however is just the expected value<00:06:28.500> of<00:06:28.680> the<00:06:28.800> payments<00:06:29.160> and<00:06:29.340> notice<00:06:29.639> these 00:06:29.930 --> 00:06:29.940 align:start position:0% value of the payments and notice these 00:06:29.940 --> 00:06:31.370 align:start position:0% value of the payments and notice these are<00:06:30.000> quite<00:06:30.180> different 00:06:31.370 --> 00:06:31.380 align:start position:0% are quite different 00:06:31.380 --> 00:06:33.909 align:start position:0% are quite different um<00:06:31.440> in<00:06:31.680> in<00:06:31.860> particular<00:06:32.400> the<00:06:32.940> social<00:06:33.120> welfare 00:06:33.909 --> 00:06:33.919 align:start position:0% um in in particular the social welfare 00:06:33.919 --> 00:06:36.409 align:start position:0% um in in particular the social welfare includes<00:06:34.919> the<00:06:35.100> utility<00:06:35.460> of<00:06:35.819> the<00:06:35.940> auctioneer 00:06:36.409 --> 00:06:36.419 align:start position:0% includes the utility of the auctioneer 00:06:36.419 --> 00:06:39.710 align:start position:0% includes the utility of the auctioneer which<00:06:37.199> means<00:06:37.699> that<00:06:38.699> all<00:06:39.000> of<00:06:39.060> the<00:06:39.240> payments 00:06:39.710 --> 00:06:39.720 align:start position:0% which means that all of the payments 00:06:39.720 --> 00:06:42.050 align:start position:0% which means that all of the payments that<00:06:40.080> the<00:06:40.199> the<00:06:40.380> users<00:06:40.860> send<00:06:41.100> are<00:06:41.460> subtracted 00:06:42.050 --> 00:06:42.060 align:start position:0% that the the users send are subtracted 00:06:42.060 --> 00:06:44.809 align:start position:0% that the the users send are subtracted or<00:06:42.660> sorry<00:06:42.960> our<00:06:43.259> negative<00:06:44.039> terms<00:06:44.520> for<00:06:44.699> the 00:06:44.809 --> 00:06:44.819 align:start position:0% or sorry our negative terms for the 00:06:44.819 --> 00:06:46.909 align:start position:0% or sorry our negative terms for the bidders<00:06:45.240> and<00:06:45.720> it's<00:06:45.900> a<00:06:46.080> positive<00:06:46.380> term<00:06:46.560> for<00:06:46.860> the 00:06:46.909 --> 00:06:46.919 align:start position:0% bidders and it's a positive term for the 00:06:46.919 --> 00:06:49.370 align:start position:0% bidders and it's a positive term for the auctioneer<00:06:47.400> so<00:06:47.819> the<00:06:48.000> payments<00:06:48.419> cancel<00:06:48.660> out<00:06:48.960> in 00:06:49.370 --> 00:06:49.380 align:start position:0% auctioneer so the payments cancel out in 00:06:49.380 --> 00:06:51.110 align:start position:0% auctioneer so the payments cancel out in social<00:06:49.500> welfare<00:06:49.919> so<00:06:50.100> you<00:06:50.280> have<00:06:50.400> no<00:06:50.639> dependence 00:06:51.110 --> 00:06:51.120 align:start position:0% social welfare so you have no dependence 00:06:51.120 --> 00:06:53.450 align:start position:0% social welfare so you have no dependence on<00:06:51.300> payments<00:06:51.780> explicitly<00:06:52.500> whereas<00:06:53.400> in 00:06:53.450 --> 00:06:53.460 align:start position:0% on payments explicitly whereas in 00:06:53.460 --> 00:06:54.770 align:start position:0% on payments explicitly whereas in revenue<00:06:53.699> of<00:06:53.880> course<00:06:54.000> you<00:06:54.120> you<00:06:54.360> depend<00:06:54.600> on 00:06:54.770 --> 00:06:54.780 align:start position:0% revenue of course you you depend on 00:06:54.780 --> 00:06:57.409 align:start position:0% revenue of course you you depend on payments<00:06:55.199> so<00:06:55.740> you<00:06:56.220> know<00:06:56.280> if<00:06:56.639> we<00:06:56.759> wanted<00:06:57.000> to<00:06:57.240> try 00:06:57.409 --> 00:06:57.419 align:start position:0% payments so you know if we wanted to try 00:06:57.419 --> 00:06:58.909 align:start position:0% payments so you know if we wanted to try to<00:06:57.600> formulate<00:06:57.960> what<00:06:58.199> is<00:06:58.380> an<00:06:58.560> economic 00:06:58.909 --> 00:06:58.919 align:start position:0% to formulate what is an economic 00:06:58.919 --> 00:07:01.010 align:start position:0% to formulate what is an economic equilibria<00:06:59.460> for<00:06:59.639> the<00:06:59.819> system<00:07:00.000> you<00:07:00.720> might<00:07:00.840> say 00:07:01.010 --> 00:07:01.020 align:start position:0% equilibria for the system you might say 00:07:01.020 --> 00:07:04.909 align:start position:0% equilibria for the system you might say okay<00:07:01.319> well<00:07:01.620> let's<00:07:01.919> try<00:07:02.220> to<00:07:02.400> find<00:07:03.139> joint<00:07:04.139> up<00:07:04.560> you 00:07:04.909 --> 00:07:04.919 align:start position:0% okay well let's try to find joint up you 00:07:04.919 --> 00:07:07.129 align:start position:0% okay well let's try to find joint up you know<00:07:05.039> Maxima<00:07:05.639> of<00:07:06.120> the<00:07:06.300> social<00:07:06.419> welfare<00:07:06.960> and 00:07:07.129 --> 00:07:07.139 align:start position:0% know Maxima of the social welfare and 00:07:07.139 --> 00:07:08.870 align:start position:0% know Maxima of the social welfare and revenue<00:07:07.500> functions 00:07:08.870 --> 00:07:08.880 align:start position:0% revenue functions 00:07:08.880 --> 00:07:10.249 align:start position:0% revenue functions however 00:07:10.249 --> 00:07:10.259 align:start position:0% however 00:07:10.259 --> 00:07:13.010 align:start position:0% however given<00:07:11.100> an<00:07:11.220> allocation<00:07:11.699> that<00:07:12.479> optimizes 00:07:13.010 --> 00:07:13.020 align:start position:0% given an allocation that optimizes 00:07:13.020 --> 00:07:14.990 align:start position:0% given an allocation that optimizes social<00:07:13.199> welfare<00:07:13.620> it<00:07:14.100> implies<00:07:14.460> a<00:07:14.699> set<00:07:14.880> of 00:07:14.990 --> 00:07:15.000 align:start position:0% social welfare it implies a set of 00:07:15.000 --> 00:07:17.150 align:start position:0% social welfare it implies a set of payments<00:07:15.479> and<00:07:16.080> it<00:07:16.259> can<00:07:16.380> be<00:07:16.500> true<00:07:16.680> that<00:07:16.979> the 00:07:17.150 --> 00:07:17.160 align:start position:0% payments and it can be true that the 00:07:17.160 --> 00:07:19.790 align:start position:0% payments and it can be true that the payments<00:07:17.580> that<00:07:17.759> you<00:07:17.940> get<00:07:18.199> from<00:07:19.199> optimal 00:07:19.790 --> 00:07:19.800 align:start position:0% payments that you get from optimal 00:07:19.800 --> 00:07:22.249 align:start position:0% payments that you get from optimal social<00:07:19.979> welfare<00:07:20.460> are<00:07:21.300> very<00:07:21.599> far<00:07:21.780> from<00:07:22.080> the 00:07:22.249 --> 00:07:22.259 align:start position:0% social welfare are very far from the 00:07:22.259 --> 00:07:24.050 align:start position:0% social welfare are very far from the payments<00:07:22.680> that<00:07:22.919> you<00:07:23.039> you<00:07:23.220> get<00:07:23.460> from<00:07:23.639> optimal 00:07:24.050 --> 00:07:24.060 align:start position:0% payments that you you get from optimal 00:07:24.060 --> 00:07:25.550 align:start position:0% payments that you you get from optimal Revenue<00:07:24.300> right<00:07:24.660> that<00:07:24.960> there's<00:07:25.199> some 00:07:25.550 --> 00:07:25.560 align:start position:0% Revenue right that there's some 00:07:25.560 --> 00:07:27.110 align:start position:0% Revenue right that there's some intuition<00:07:25.919> to<00:07:26.099> that<00:07:26.160> right<00:07:26.340> like<00:07:26.520> if<00:07:26.759> if 00:07:27.110 --> 00:07:27.120 align:start position:0% intuition to that right like if if 00:07:27.120 --> 00:07:29.450 align:start position:0% intuition to that right like if if flashbots<00:07:27.780> just<00:07:28.020> basically<00:07:28.500> gave<00:07:29.160> every 00:07:29.450 --> 00:07:29.460 align:start position:0% flashbots just basically gave every 00:07:29.460 --> 00:07:32.210 align:start position:0% flashbots just basically gave every bundle<00:07:29.880> for<00:07:30.240> free<00:07:30.440> obviously<00:07:31.440> the<00:07:31.740> there's<00:07:32.039> a 00:07:32.210 --> 00:07:32.220 align:start position:0% bundle for free obviously the there's a 00:07:32.220 --> 00:07:34.969 align:start position:0% bundle for free obviously the there's a lot<00:07:32.340> of<00:07:32.580> user<00:07:33.360> gains<00:07:34.020> but<00:07:34.259> like<00:07:34.560> you<00:07:34.680> know<00:07:34.860> the 00:07:34.969 --> 00:07:34.979 align:start position:0% lot of user gains but like you know the 00:07:34.979 --> 00:07:36.650 align:start position:0% lot of user gains but like you know the auctioneer<00:07:35.520> is<00:07:35.580> pretty<00:07:35.759> pissed<00:07:36.120> aka<00:07:36.539> the 00:07:36.650 --> 00:07:36.660 align:start position:0% auctioneer is pretty pissed aka the 00:07:36.660 --> 00:07:38.809 align:start position:0% auctioneer is pretty pissed aka the validator<00:07:37.080> slash<00:07:37.500> minors 00:07:38.809 --> 00:07:38.819 align:start position:0% validator slash minors 00:07:38.819 --> 00:07:41.510 align:start position:0% validator slash minors and<00:07:39.419> this<00:07:39.599> happens<00:07:39.840> all<00:07:40.319> the<00:07:40.440> time<00:07:40.500> in<00:07:40.680> mud<00:07:41.039> the 00:07:41.510 --> 00:07:41.520 align:start position:0% and this happens all the time in mud the 00:07:41.520 --> 00:07:43.129 align:start position:0% and this happens all the time in mud the the<00:07:41.699> idea<00:07:42.000> that<00:07:42.180> the<00:07:42.419> optimal<00:07:42.840> revenue 00:07:43.129 --> 00:07:43.139 align:start position:0% the idea that the optimal revenue 00:07:43.139 --> 00:07:45.110 align:start position:0% the idea that the optimal revenue equilibria<00:07:43.919> and<00:07:44.160> the<00:07:44.520> optimal<00:07:45.000> social 00:07:45.110 --> 00:07:45.120 align:start position:0% equilibria and the optimal social 00:07:45.120 --> 00:07:47.510 align:start position:0% equilibria and the optimal social welfare<00:07:45.680> equilibria<00:07:46.680> are<00:07:46.800> sort<00:07:47.160> of<00:07:47.280> disjoint 00:07:47.510 --> 00:07:47.520 align:start position:0% welfare equilibria are sort of disjoint 00:07:47.520 --> 00:07:51.170 align:start position:0% welfare equilibria are sort of disjoint so<00:07:48.120> you<00:07:48.960> know<00:07:49.020> the<00:07:49.440> the<00:07:49.620> name<00:07:49.919> cost<00:07:50.340> of<00:07:50.639> fee<00:07:51.000> or 00:07:51.170 --> 00:07:51.180 align:start position:0% so you know the the name cost of fee or 00:07:51.180 --> 00:07:53.809 align:start position:0% so you know the the name cost of fee or cost<00:07:51.419> of<00:07:51.599> feudalism<00:07:52.020> is<00:07:52.319> really<00:07:52.500> a<00:07:52.740> pun<00:07:53.160> on<00:07:53.460> the 00:07:53.809 --> 00:07:53.819 align:start position:0% cost of feudalism is really a pun on the 00:07:53.819 --> 00:07:55.490 align:start position:0% cost of feudalism is really a pun on the concept<00:07:54.120> of<00:07:54.300> the<00:07:54.539> price<00:07:54.599> of<00:07:54.780> Anarchy<00:07:55.199> which<00:07:55.380> is 00:07:55.490 --> 00:07:55.500 align:start position:0% concept of the price of Anarchy which is 00:07:55.500 --> 00:07:57.350 align:start position:0% concept of the price of Anarchy which is sort<00:07:55.680> of<00:07:55.740> a<00:07:55.919> common<00:07:56.400> Concept<00:07:56.759> in<00:07:56.940> algorithmic 00:07:57.350 --> 00:07:57.360 align:start position:0% sort of a common Concept in algorithmic 00:07:57.360 --> 00:07:59.450 align:start position:0% sort of a common Concept in algorithmic gain<00:07:57.539> Theory<00:07:57.840> roughly<00:07:58.680> speaking<00:07:59.160> you<00:07:59.400> can 00:07:59.450 --> 00:07:59.460 align:start position:0% gain Theory roughly speaking you can 00:07:59.460 --> 00:08:01.249 align:start position:0% gain Theory roughly speaking you can think<00:07:59.580> of<00:07:59.699> the<00:07:59.819> price<00:08:00.000> of<00:08:00.120> Anarchy<00:08:00.599> as 00:08:01.249 --> 00:08:01.259 align:start position:0% think of the price of Anarchy as 00:08:01.259 --> 00:08:03.050 align:start position:0% think of the price of Anarchy as if<00:08:01.440> I<00:08:01.919> take<00:08:02.099> if<00:08:02.340> I<00:08:02.520> have<00:08:02.520> a<00:08:02.639> set<00:08:02.759> of<00:08:02.940> many 00:08:03.050 --> 00:08:03.060 align:start position:0% if I take if I have a set of many 00:08:03.060 --> 00:08:05.629 align:start position:0% if I take if I have a set of many equilibria<00:08:03.720> I<00:08:04.380> want<00:08:04.500> to<00:08:04.620> look<00:08:04.800> at<00:08:04.919> the<00:08:05.220> ratio 00:08:05.629 --> 00:08:05.639 align:start position:0% equilibria I want to look at the ratio 00:08:05.639 --> 00:08:07.850 align:start position:0% equilibria I want to look at the ratio of<00:08:06.060> the<00:08:06.300> worst<00:08:06.660> case<00:08:06.840> behavior<00:08:07.620> of<00:08:07.740> an 00:08:07.850 --> 00:08:07.860 align:start position:0% of the worst case behavior of an 00:08:07.860 --> 00:08:10.010 align:start position:0% of the worst case behavior of an equilibria<00:08:08.400> to<00:08:08.880> the<00:08:09.060> best<00:08:09.240> case<00:08:09.479> Behavior 00:08:10.010 --> 00:08:10.020 align:start position:0% equilibria to the best case Behavior 00:08:10.020 --> 00:08:11.990 align:start position:0% equilibria to the best case Behavior it's<00:08:10.199> an<00:08:10.380> approximation<00:08:10.919> ratio 00:08:11.990 --> 00:08:12.000 align:start position:0% it's an approximation ratio 00:08:12.000 --> 00:08:14.270 align:start position:0% it's an approximation ratio and<00:08:12.539> so<00:08:12.720> what<00:08:13.020> this<00:08:13.500> for<00:08:13.800> instance<00:08:14.039> this 00:08:14.270 --> 00:08:14.280 align:start position:0% and so what this for instance this 00:08:14.280 --> 00:08:16.610 align:start position:0% and so what this for instance this formula<00:08:14.580> says<00:08:14.880> is<00:08:15.000> what's<00:08:15.660> the<00:08:16.020> worst<00:08:16.380> case 00:08:16.610 --> 00:08:16.620 align:start position:0% formula says is what's the worst case 00:08:16.620 --> 00:08:19.369 align:start position:0% formula says is what's the worst case that<00:08:17.160> the<00:08:17.580> equilibria<00:08:18.300> the<00:08:18.539> payments<00:08:19.020> earned 00:08:19.369 --> 00:08:19.379 align:start position:0% that the equilibria the payments earned 00:08:19.379 --> 00:08:21.350 align:start position:0% that the equilibria the payments earned by<00:08:19.500> the<00:08:19.680> validator<00:08:20.099> deviate<00:08:20.879> from<00:08:21.240> the 00:08:21.350 --> 00:08:21.360 align:start position:0% by the validator deviate from the 00:08:21.360 --> 00:08:23.510 align:start position:0% by the validator deviate from the payments<00:08:21.780> earned<00:08:22.139> at<00:08:22.319> optimal<00:08:22.740> welfare<00:08:23.039> and 00:08:23.510 --> 00:08:23.520 align:start position:0% payments earned at optimal welfare and 00:08:23.520 --> 00:08:25.010 align:start position:0% payments earned at optimal welfare and what's<00:08:23.639> the<00:08:23.940> best<00:08:24.120> case<00:08:24.360> and<00:08:24.660> what's<00:08:24.780> the 00:08:25.010 --> 00:08:25.020 align:start position:0% what's the best case and what's the 00:08:25.020 --> 00:08:26.390 align:start position:0% what's the best case and what's the ratio<00:08:25.319> of<00:08:25.500> those 00:08:26.390 --> 00:08:26.400 align:start position:0% ratio of those 00:08:26.400 --> 00:08:28.010 align:start position:0% ratio of those and<00:08:26.759> you<00:08:26.879> could<00:08:27.000> basically<00:08:27.300> think<00:08:27.539> of<00:08:27.720> this<00:08:27.840> as 00:08:28.010 --> 00:08:28.020 align:start position:0% and you could basically think of this as 00:08:28.020 --> 00:08:30.469 align:start position:0% and you could basically think of this as if<00:08:28.319> this<00:08:28.500> is<00:08:28.620> really<00:08:28.860> large<00:08:29.340> or<00:08:29.879> depends<00:08:30.300> on 00:08:30.469 --> 00:08:30.479 align:start position:0% if this is really large or depends on 00:08:30.479 --> 00:08:31.909 align:start position:0% if this is really large or depends on the<00:08:30.599> number<00:08:30.780> of<00:08:30.960> transactions<00:08:31.440> or<00:08:31.620> users 00:08:31.909 --> 00:08:31.919 align:start position:0% the number of transactions or users 00:08:31.919 --> 00:08:35.510 align:start position:0% the number of transactions or users that's<00:08:32.159> really<00:08:32.399> bad<00:08:32.700> and<00:08:33.659> so<00:08:33.899> you<00:08:34.860> know<00:08:34.919> uh 00:08:35.510 --> 00:08:35.520 align:start position:0% that's really bad and so you know uh 00:08:35.520 --> 00:08:37.730 align:start position:0% that's really bad and so you know uh tongue-in-cheek<00:08:36.360> uh<00:08:37.080> you<00:08:37.380> know<00:08:37.440> of<00:08:37.620> course 00:08:37.730 --> 00:08:37.740 align:start position:0% tongue-in-cheek uh you know of course 00:08:37.740 --> 00:08:39.889 align:start position:0% tongue-in-cheek uh you know of course nothing<00:08:38.039> in<00:08:38.339> real<00:08:38.640> life<00:08:38.760> is<00:08:38.940> asymptotic<00:08:39.599> but 00:08:39.889 --> 00:08:39.899 align:start position:0% nothing in real life is asymptotic but 00:08:39.899 --> 00:08:41.750 align:start position:0% nothing in real life is asymptotic but you<00:08:40.140> know<00:08:40.260> I<00:08:40.380> I<00:08:40.560> Feel<00:08:40.860> Like<00:08:41.039> These<00:08:41.580> are<00:08:41.700> good 00:08:41.750 --> 00:08:41.760 align:start position:0% you know I I Feel Like These are good 00:08:41.760 --> 00:08:44.690 align:start position:0% you know I I Feel Like These are good heuristics<00:08:42.300> which<00:08:43.080> is<00:08:43.339> constant<00:08:44.339> price<00:08:44.520> of 00:08:44.690 --> 00:08:44.700 align:start position:0% heuristics which is constant price of 00:08:44.700 --> 00:08:47.150 align:start position:0% heuristics which is constant price of Anarchy<00:08:45.180> is<00:08:45.480> really<00:08:45.660> good<00:08:45.899> it<00:08:46.620> means<00:08:46.860> that 00:08:47.150 --> 00:08:47.160 align:start position:0% Anarchy is really good it means that 00:08:47.160 --> 00:08:49.610 align:start position:0% Anarchy is really good it means that even<00:08:48.000> if<00:08:48.240> you<00:08:48.300> get<00:08:48.480> to<00:08:48.600> a<00:08:48.779> shitty<00:08:49.019> equilibria 00:08:49.610 --> 00:08:49.620 align:start position:0% even if you get to a shitty equilibria 00:08:49.620 --> 00:08:52.430 align:start position:0% even if you get to a shitty equilibria uh<00:08:50.459> it's<00:08:50.700> not<00:08:50.880> that<00:08:51.060> much<00:08:51.360> worse<00:08:51.779> it's<00:08:52.320> not 00:08:52.430 --> 00:08:52.440 align:start position:0% uh it's not that much worse it's not 00:08:52.440 --> 00:08:54.590 align:start position:0% uh it's not that much worse it's not that<00:08:52.680> much<00:08:52.920> uh<00:08:53.700> worse<00:08:54.120> than<00:08:54.300> the<00:08:54.540> best 00:08:54.590 --> 00:08:54.600 align:start position:0% that much uh worse than the best 00:08:54.600 --> 00:08:57.170 align:start position:0% that much uh worse than the best equilibria<00:08:55.260> if<00:08:55.800> the<00:08:55.980> price<00:08:56.100> of<00:08:56.220> Anarchy<00:08:56.640> is<00:08:56.820> is 00:08:57.170 --> 00:08:57.180 align:start position:0% equilibria if the price of Anarchy is is 00:08:57.180 --> 00:09:00.170 align:start position:0% equilibria if the price of Anarchy is is weekly<00:08:57.839> growing<00:08:58.500> uh<00:08:59.100> so<00:08:59.220> little<00:08:59.399> o<00:08:59.640> of<00:08:59.820> n<00:08:59.940> so 00:09:00.170 --> 00:09:00.180 align:start position:0% weekly growing uh so little o of n so 00:09:00.180 --> 00:09:01.550 align:start position:0% weekly growing uh so little o of n so like<00:09:00.360> maybe<00:09:00.540> it's<00:09:00.720> logarithmic<00:09:01.320> in<00:09:01.440> the 00:09:01.550 --> 00:09:01.560 align:start position:0% like maybe it's logarithmic in the 00:09:01.560 --> 00:09:03.410 align:start position:0% like maybe it's logarithmic in the number<00:09:01.680> of<00:09:01.800> users<00:09:02.279> or<00:09:02.459> slots<00:09:02.820> maybe<00:09:03.120> it's 00:09:03.410 --> 00:09:03.420 align:start position:0% number of users or slots maybe it's 00:09:03.420 --> 00:09:05.090 align:start position:0% number of users or slots maybe it's square<00:09:03.720> root<00:09:04.019> of<00:09:04.140> the<00:09:04.260> number<00:09:04.440> of<00:09:04.560> user<00:09:04.860> slots 00:09:05.090 --> 00:09:05.100 align:start position:0% square root of the number of user slots 00:09:05.100 --> 00:09:09.050 align:start position:0% square root of the number of user slots that's<00:09:05.700> okay<00:09:05.940> it's<00:09:06.779> you<00:09:07.019> can<00:09:07.140> deal<00:09:07.260> with<00:09:07.500> that 00:09:09.050 --> 00:09:09.060 align:start position:0% that's okay it's you can deal with that 00:09:09.060 --> 00:09:11.329 align:start position:0% that's okay it's you can deal with that um<00:09:09.120> and<00:09:09.480> if<00:09:09.660> the<00:09:09.899> price<00:09:09.959> of<00:09:10.140> Anarchy<00:09:10.620> is<00:09:10.920> linear 00:09:11.329 --> 00:09:11.339 align:start position:0% um and if the price of Anarchy is linear 00:09:11.339 --> 00:09:13.310 align:start position:0% um and if the price of Anarchy is linear in<00:09:11.580> the<00:09:11.700> number<00:09:11.820> of<00:09:11.940> users<00:09:12.300> that's<00:09:12.959> horrible 00:09:13.310 --> 00:09:13.320 align:start position:0% in the number of users that's horrible 00:09:13.320 --> 00:09:16.250 align:start position:0% in the number of users that's horrible that<00:09:13.920> that<00:09:14.100> basically<00:09:14.580> means<00:09:15.180> that<00:09:15.420> the<00:09:16.080> more 00:09:16.250 --> 00:09:16.260 align:start position:0% that that basically means that the more 00:09:16.260 --> 00:09:18.650 align:start position:0% that that basically means that the more users<00:09:16.620> join<00:09:17.040> the<00:09:17.160> system<00:09:17.339> the<00:09:18.240> worse<00:09:18.480> the 00:09:18.650 --> 00:09:18.660 align:start position:0% users join the system the worse the 00:09:18.660 --> 00:09:20.690 align:start position:0% users join the system the worse the equilibria<00:09:19.260> is<00:09:19.440> for<00:09:19.620> everyone<00:09:19.860> which<00:09:20.339> is<00:09:20.459> like 00:09:20.690 --> 00:09:20.700 align:start position:0% equilibria is for everyone which is like 00:09:20.700 --> 00:09:22.190 align:start position:0% equilibria is for everyone which is like the<00:09:20.880> opposite<00:09:21.240> of<00:09:21.360> a<00:09:21.480> network<00:09:21.660> effect<00:09:21.899> it's 00:09:22.190 --> 00:09:22.200 align:start position:0% the opposite of a network effect it's 00:09:22.200 --> 00:09:24.590 align:start position:0% the opposite of a network effect it's like<00:09:22.320> the<00:09:22.500> anti-network<00:09:23.279> effect<00:09:23.459> right 00:09:24.590 --> 00:09:24.600 align:start position:0% like the anti-network effect right 00:09:24.600 --> 00:09:26.810 align:start position:0% like the anti-network effect right no<00:09:25.080> one<00:09:25.260> wants<00:09:25.500> that<00:09:26.100> um<00:09:26.160> and<00:09:26.399> the<00:09:26.519> interesting 00:09:26.810 --> 00:09:26.820 align:start position:0% no one wants that um and the interesting 00:09:26.820 --> 00:09:28.430 align:start position:0% no one wants that um and the interesting thing<00:09:27.000> is<00:09:27.240> that<00:09:27.420> this<00:09:27.660> quantity<00:09:28.080> if<00:09:28.200> you<00:09:28.320> try 00:09:28.430 --> 00:09:28.440 align:start position:0% thing is that this quantity if you try 00:09:28.440 --> 00:09:30.170 align:start position:0% thing is that this quantity if you try to<00:09:28.560> write<00:09:28.680> it<00:09:28.800> out<00:09:28.920> depends<00:09:29.519> a<00:09:29.640> lot<00:09:29.820> on<00:09:30.060> your 00:09:30.170 --> 00:09:30.180 align:start position:0% to write it out depends a lot on your 00:09:30.180 --> 00:09:32.690 align:start position:0% to write it out depends a lot on your choice<00:09:30.480> of<00:09:31.019> how<00:09:31.320> you<00:09:31.560> what<00:09:32.220> applications 00:09:32.690 --> 00:09:32.700 align:start position:0% choice of how you what applications 00:09:32.700 --> 00:09:34.730 align:start position:0% choice of how you what applications you're<00:09:33.000> modeling<00:09:33.420> because<00:09:33.899> to<00:09:34.260> compute<00:09:34.560> the 00:09:34.730 --> 00:09:34.740 align:start position:0% you're modeling because to compute the 00:09:34.740 --> 00:09:36.410 align:start position:0% you're modeling because to compute the prices<00:09:34.920> you<00:09:35.339> need<00:09:35.459> to<00:09:35.640> sort<00:09:35.760> of<00:09:35.880> know<00:09:36.060> these 00:09:36.410 --> 00:09:36.420 align:start position:0% prices you need to sort of know these 00:09:36.420 --> 00:09:38.990 align:start position:0% prices you need to sort of know these utilities<00:09:36.779> of<00:09:37.019> the<00:09:37.140> user<00:09:37.459> and<00:09:38.459> that<00:09:38.760> of<00:09:38.880> course 00:09:38.990 --> 00:09:39.000 align:start position:0% utilities of the user and that of course 00:09:39.000 --> 00:09:40.550 align:start position:0% utilities of the user and that of course depends<00:09:39.240> not<00:09:39.600> to<00:09:39.779> keep<00:09:39.899> belaboring<00:09:40.440> that 00:09:40.550 --> 00:09:40.560 align:start position:0% depends not to keep belaboring that 00:09:40.560 --> 00:09:41.930 align:start position:0% depends not to keep belaboring that point<00:09:40.680> but<00:09:40.800> I<00:09:40.980> think<00:09:41.100> the<00:09:41.339> the<00:09:41.580> one<00:09:41.820> of<00:09:41.940> the 00:09:41.930 --> 00:09:41.940 align:start position:0% point but I think the the one of the 00:09:41.940 --> 00:09:45.050 align:start position:0% point but I think the the one of the reasons<00:09:42.240> Mev<00:09:42.720> has<00:09:42.959> this<00:09:43.260> you<00:09:44.040> know<00:09:44.160> both<00:09:44.760> meme 00:09:45.050 --> 00:09:45.060 align:start position:0% reasons Mev has this you know both meme 00:09:45.060 --> 00:09:47.090 align:start position:0% reasons Mev has this you know both meme ability<00:09:45.540> and<00:09:45.959> inability<00:09:46.440> for<00:09:46.680> anyone<00:09:46.920> to 00:09:47.090 --> 00:09:47.100 align:start position:0% ability and inability for anyone to 00:09:47.100 --> 00:09:48.769 align:start position:0% ability and inability for anyone to write<00:09:47.220> down<00:09:47.399> equations<00:09:47.760> for<00:09:48.120> it<00:09:48.240> is<00:09:48.480> because 00:09:48.769 --> 00:09:48.779 align:start position:0% write down equations for it is because 00:09:48.779 --> 00:09:50.690 align:start position:0% write down equations for it is because it's<00:09:49.320> so<00:09:49.500> dependent<00:09:49.980> on<00:09:50.160> the<00:09:50.339> application 00:09:50.690 --> 00:09:50.700 align:start position:0% it's so dependent on the application 00:09:50.700 --> 00:09:52.730 align:start position:0% it's so dependent on the application which<00:09:51.000> is<00:09:51.120> something<00:09:51.360> I<00:09:51.660> think<00:09:51.779> you<00:09:52.380> know<00:09:52.500> the 00:09:52.730 --> 00:09:52.740 align:start position:0% which is something I think you know the 00:09:52.740 --> 00:09:54.050 align:start position:0% which is something I think you know the early<00:09:52.920> designers<00:09:53.339> of<00:09:53.519> cryptocurrency 00:09:54.050 --> 00:09:54.060 align:start position:0% early designers of cryptocurrency 00:09:54.060 --> 00:09:55.550 align:start position:0% early designers of cryptocurrency networks<00:09:54.420> did<00:09:54.600> not 00:09:55.550 --> 00:09:55.560 align:start position:0% networks did not 00:09:55.560 --> 00:09:58.190 align:start position:0% networks did not you<00:09:56.040> know<00:09:56.160> Divine<00:09:56.519> at<00:09:56.700> that<00:09:56.820> time<00:09:57.000> so<00:09:57.600> let's<00:09:57.899> go 00:09:58.190 --> 00:09:58.200 align:start position:0% you know Divine at that time so let's go 00:09:58.200 --> 00:10:00.710 align:start position:0% you know Divine at that time so let's go through<00:09:58.500> an<00:09:58.800> example<00:09:59.100> a<00:09:59.700> stylized<00:10:00.180> example<00:10:00.540> of 00:10:00.710 --> 00:10:00.720 align:start position:0% through an example a stylized example of 00:10:00.720 --> 00:10:02.150 align:start position:0% through an example a stylized example of kind<00:10:01.140> of<00:10:01.200> what<00:10:01.380> this<00:10:01.500> looks<00:10:01.740> like<00:10:01.800> how<00:10:02.040> would 00:10:02.150 --> 00:10:02.160 align:start position:0% kind of what this looks like how would 00:10:02.160 --> 00:10:05.030 align:start position:0% kind of what this looks like how would you<00:10:02.279> analyze<00:10:02.700> this<00:10:02.820> for<00:10:03.180> amms 00:10:05.030 --> 00:10:05.040 align:start position:0% you analyze this for amms 00:10:05.040 --> 00:10:07.610 align:start position:0% you analyze this for amms um<00:10:05.100> there's<00:10:05.459> a<00:10:05.640> very<00:10:05.760> famous<00:10:05.880> Paradox<00:10:06.620> in 00:10:07.610 --> 00:10:07.620 align:start position:0% um there's a very famous Paradox in 00:10:07.620 --> 00:10:09.230 align:start position:0% um there's a very famous Paradox in algorithmic<00:10:08.160> Game<00:10:08.279> Theory<00:10:08.580> called<00:10:08.820> braces 00:10:09.230 --> 00:10:09.240 align:start position:0% algorithmic Game Theory called braces 00:10:09.240 --> 00:10:10.910 align:start position:0% algorithmic Game Theory called braces Paradox<00:10:09.660> and<00:10:09.779> braces<00:10:10.080> Paradox<00:10:10.500> is<00:10:10.740> really 00:10:10.910 --> 00:10:10.920 align:start position:0% Paradox and braces Paradox is really 00:10:10.920 --> 00:10:14.269 align:start position:0% Paradox and braces Paradox is really about<00:10:11.160> how<00:10:12.120> traffic<00:10:12.420> flows<00:10:13.080> on<00:10:13.440> a<00:10:13.560> network<00:10:13.740> so 00:10:14.269 --> 00:10:14.279 align:start position:0% about how traffic flows on a network so 00:10:14.279 --> 00:10:17.269 align:start position:0% about how traffic flows on a network so we<00:10:14.640> have<00:10:14.820> this<00:10:15.000> network<00:10:15.240> on<00:10:15.959> the<00:10:16.080> left<00:10:16.200> and<00:10:17.160> we 00:10:17.269 --> 00:10:17.279 align:start position:0% we have this network on the left and we 00:10:17.279 --> 00:10:19.250 align:start position:0% we have this network on the left and we have<00:10:17.459> a<00:10:17.519> source<00:10:17.940> City<00:10:18.120> s<00:10:18.600> we<00:10:19.019> have<00:10:19.200> a 00:10:19.250 --> 00:10:19.260 align:start position:0% have a source City s we have a 00:10:19.260 --> 00:10:20.990 align:start position:0% have a source City s we have a destination<00:10:19.740> city<00:10:20.040> d 00:10:20.990 --> 00:10:21.000 align:start position:0% destination city d 00:10:21.000 --> 00:10:23.690 align:start position:0% destination city d and<00:10:21.899> imagine<00:10:22.680> that<00:10:23.040> there's<00:10:23.220> a<00:10:23.399> bunch<00:10:23.519> of 00:10:23.690 --> 00:10:23.700 align:start position:0% and imagine that there's a bunch of 00:10:23.700 --> 00:10:25.730 align:start position:0% and imagine that there's a bunch of traffic<00:10:24.120> that<00:10:24.540> needs<00:10:24.779> to<00:10:24.899> go<00:10:25.019> from<00:10:25.260> source<00:10:25.620> to 00:10:25.730 --> 00:10:25.740 align:start position:0% traffic that needs to go from source to 00:10:25.740 --> 00:10:28.910 align:start position:0% traffic that needs to go from source to destination<00:10:26.220> each<00:10:27.000> Edge<00:10:27.300> that<00:10:27.839> it<00:10:28.080> takes<00:10:28.260> is<00:10:28.740> a 00:10:28.910 --> 00:10:28.920 align:start position:0% destination each Edge that it takes is a 00:10:28.920 --> 00:10:30.949 align:start position:0% destination each Edge that it takes is a latency<00:10:29.220> and<00:10:29.519> so<00:10:29.700> when<00:10:30.060> you<00:10:30.180> see<00:10:30.360> a<00:10:30.480> latency<00:10:30.720> of 00:10:30.949 --> 00:10:30.959 align:start position:0% latency and so when you see a latency of 00:10:30.959 --> 00:10:33.530 align:start position:0% latency and so when you see a latency of one<00:10:31.080> that's<00:10:31.380> sort<00:10:31.620> of<00:10:31.740> like<00:10:31.920> a<00:10:32.640> a<00:10:32.820> link<00:10:33.240> that 00:10:33.530 --> 00:10:33.540 align:start position:0% one that's sort of like a a link that 00:10:33.540 --> 00:10:35.930 align:start position:0% one that's sort of like a a link that can<00:10:33.660> take<00:10:33.839> arbitrary<00:10:34.260> capacity<00:10:34.800> it<00:10:35.100> takes<00:10:35.700> the 00:10:35.930 --> 00:10:35.940 align:start position:0% can take arbitrary capacity it takes the 00:10:35.940 --> 00:10:38.449 align:start position:0% can take arbitrary capacity it takes the same<00:10:36.060> amount<00:10:36.360> of<00:10:36.480> time<00:10:36.660> for<00:10:37.080> everyone<00:10:37.320> to<00:10:38.279> to 00:10:38.449 --> 00:10:38.459 align:start position:0% same amount of time for everyone to to 00:10:38.459 --> 00:10:41.750 align:start position:0% same amount of time for everyone to to cross<00:10:38.700> that<00:10:38.880> link<00:10:39.540> when<00:10:40.140> you<00:10:40.320> see<00:10:40.500> a<00:10:40.680> link<00:10:40.920> of<00:10:41.399> X 00:10:41.750 --> 00:10:41.760 align:start position:0% cross that link when you see a link of X 00:10:41.760 --> 00:10:43.670 align:start position:0% cross that link when you see a link of X it's<00:10:42.360> dependent<00:10:42.779> on<00:10:42.899> the<00:10:43.019> amount<00:10:43.200> of<00:10:43.320> flow<00:10:43.560> in 00:10:43.670 --> 00:10:43.680 align:start position:0% it's dependent on the amount of flow in 00:10:43.680 --> 00:10:45.470 align:start position:0% it's dependent on the amount of flow in that<00:10:43.860> Network<00:10:44.100> so<00:10:44.579> you<00:10:45.000> could<00:10:45.120> basically 00:10:45.470 --> 00:10:45.480 align:start position:0% that Network so you could basically 00:10:45.480 --> 00:10:49.370 align:start position:0% that Network so you could basically imagine<00:10:46.019> that<00:10:46.560> say<00:10:47.040> we<00:10:47.279> have<00:10:47.459> 100<00:10:47.700> cars 00:10:49.370 --> 00:10:49.380 align:start position:0% imagine that say we have 100 cars 00:10:49.380 --> 00:10:51.829 align:start position:0% imagine that say we have 100 cars um<00:10:49.440> if<00:10:50.040> 100<00:10:50.220> cars<00:10:50.640> all<00:10:50.820> go<00:10:51.060> down<00:10:51.240> the<00:10:51.420> route<00:10:51.540> X 00:10:51.829 --> 00:10:51.839 align:start position:0% um if 100 cars all go down the route X 00:10:51.839 --> 00:10:53.509 align:start position:0% um if 100 cars all go down the route X then<00:10:52.140> it's<00:10:52.320> proportional<00:10:52.860> to<00:10:53.100> the<00:10:53.220> number<00:10:53.339> of 00:10:53.509 --> 00:10:53.519 align:start position:0% then it's proportional to the number of 00:10:53.519 --> 00:10:55.190 align:start position:0% then it's proportional to the number of cars<00:10:53.880> that<00:10:54.000> are<00:10:54.120> going 00:10:55.190 --> 00:10:55.200 align:start position:0% cars that are going 00:10:55.200 --> 00:10:57.170 align:start position:0% cars that are going on<00:10:55.320> there<00:10:55.620> and<00:10:55.860> so<00:10:56.040> what<00:10:56.579> you<00:10:56.700> can<00:10:56.820> do<00:10:56.880> is<00:10:57.000> you 00:10:57.170 --> 00:10:57.180 align:start position:0% on there and so what you can do is you 00:10:57.180 --> 00:10:59.690 align:start position:0% on there and so what you can do is you can<00:10:57.300> say<00:10:57.420> Hey<00:10:57.600> what<00:10:57.959> if<00:10:58.140> everyone<00:10:58.440> is<00:10:59.220> selfish 00:10:59.690 --> 00:10:59.700 align:start position:0% can say Hey what if everyone is selfish 00:10:59.700 --> 00:11:02.030 align:start position:0% can say Hey what if everyone is selfish or<00:10:59.880> greedy<00:11:00.300> they're<00:11:00.540> not<00:11:00.720> cooperating<00:11:01.380> they 00:11:02.030 --> 00:11:02.040 align:start position:0% or greedy they're not cooperating they 00:11:02.040 --> 00:11:03.470 align:start position:0% or greedy they're not cooperating they don't<00:11:02.220> have<00:11:02.279> Google<00:11:02.459> Maps<00:11:02.820> so<00:11:03.000> Google<00:11:03.180> Maps 00:11:03.470 --> 00:11:03.480 align:start position:0% don't have Google Maps so Google Maps 00:11:03.480 --> 00:11:04.910 align:start position:0% don't have Google Maps so Google Maps effectively<00:11:03.959> gets<00:11:04.200> around<00:11:04.320> this<00:11:04.560> because<00:11:04.680> it 00:11:04.910 --> 00:11:04.920 align:start position:0% effectively gets around this because it 00:11:04.920 --> 00:11:07.130 align:start position:0% effectively gets around this because it it<00:11:05.519> sort<00:11:05.820> of<00:11:05.940> implicitly<00:11:06.420> coordinates<00:11:06.899> people 00:11:07.130 --> 00:11:07.140 align:start position:0% it sort of implicitly coordinates people 00:11:07.140 --> 00:11:08.630 align:start position:0% it sort of implicitly coordinates people whether<00:11:07.560> you<00:11:07.860> you<00:11:08.040> know<00:11:08.279> you're<00:11:08.459> thinking 00:11:08.630 --> 00:11:08.640 align:start position:0% whether you you know you're thinking 00:11:08.640 --> 00:11:10.069 align:start position:0% whether you you know you're thinking about<00:11:08.760> it<00:11:08.940> or<00:11:09.060> not 00:11:10.069 --> 00:11:10.079 align:start position:0% about it or not 00:11:10.079 --> 00:11:11.990 align:start position:0% about it or not uh<00:11:10.680> but<00:11:10.860> assume<00:11:11.220> everyone's<00:11:11.579> selfish<00:11:11.820> and 00:11:11.990 --> 00:11:12.000 align:start position:0% uh but assume everyone's selfish and 00:11:12.000 --> 00:11:14.090 align:start position:0% uh but assume everyone's selfish and they<00:11:12.180> they<00:11:12.300> know<00:11:12.540> this<00:11:12.839> map<00:11:13.019> how<00:11:13.740> would<00:11:13.860> they 00:11:14.090 --> 00:11:14.100 align:start position:0% they they know this map how would they 00:11:14.100 --> 00:11:16.550 align:start position:0% they they know this map how would they how<00:11:14.459> would<00:11:14.640> they<00:11:14.820> choose<00:11:15.000> which<00:11:15.180> path<00:11:15.480> to<00:11:15.779> take 00:11:16.550 --> 00:11:16.560 align:start position:0% how would they choose which path to take 00:11:16.560 --> 00:11:19.190 align:start position:0% how would they choose which path to take and<00:11:17.279> the<00:11:17.820> the<00:11:18.000> thing<00:11:18.240> you<00:11:18.360> can<00:11:18.480> show<00:11:18.660> is 00:11:19.190 --> 00:11:19.200 align:start position:0% and the the thing you can show is 00:11:19.200 --> 00:11:21.350 align:start position:0% and the the thing you can show is basically<00:11:19.620> it<00:11:20.459> they<00:11:20.760> would<00:11:20.880> split<00:11:21.120> themselves 00:11:21.350 --> 00:11:21.360 align:start position:0% basically it they would split themselves 00:11:21.360 --> 00:11:23.690 align:start position:0% basically it they would split themselves up<00:11:21.540> 50<00:11:21.720> 50.<00:11:22.200> the<00:11:22.560> traffic<00:11:22.740> would<00:11:23.040> go<00:11:23.160> half<00:11:23.339> on 00:11:23.690 --> 00:11:23.700 align:start position:0% up 50 50. the traffic would go half on 00:11:23.700 --> 00:11:25.250 align:start position:0% up 50 50. the traffic would go half on the<00:11:23.820> upper<00:11:24.060> path<00:11:24.180> half<00:11:24.480> on<00:11:24.720> the<00:11:24.839> lower<00:11:24.959> path 00:11:25.250 --> 00:11:25.260 align:start position:0% the upper path half on the lower path 00:11:25.260 --> 00:11:27.889 align:start position:0% the upper path half on the lower path and<00:11:26.220> so<00:11:26.339> the<00:11:26.519> the<00:11:26.760> time<00:11:27.120> it<00:11:27.360> would<00:11:27.480> take<00:11:27.660> is 00:11:27.889 --> 00:11:27.899 align:start position:0% and so the the time it would take is 00:11:27.899 --> 00:11:29.930 align:start position:0% and so the the time it would take is three<00:11:28.200> half<00:11:28.380> you<00:11:28.800> know<00:11:28.920> we<00:11:29.040> choose<00:11:29.339> some<00:11:29.519> units 00:11:29.930 --> 00:11:29.940 align:start position:0% three half you know we choose some units 00:11:29.940 --> 00:11:32.329 align:start position:0% three half you know we choose some units uh<00:11:30.300> such<00:11:30.480> that<00:11:30.660> X's<00:11:31.019> from<00:11:31.200> zero<00:11:31.500> to<00:11:31.560> one<00:11:31.740> on<00:11:32.160> the 00:11:32.329 --> 00:11:32.339 align:start position:0% uh such that X's from zero to one on the 00:11:32.339 --> 00:11:33.350 align:start position:0% uh such that X's from zero to one on the other<00:11:32.399> hand 00:11:33.350 --> 00:11:33.360 align:start position:0% other hand 00:11:33.360 --> 00:11:35.329 align:start position:0% other hand you<00:11:33.720> might<00:11:33.899> think<00:11:34.019> that<00:11:34.200> adding<00:11:34.620> more<00:11:34.860> roads 00:11:35.329 --> 00:11:35.339 align:start position:0% you might think that adding more roads 00:11:35.339 --> 00:11:38.509 align:start position:0% you might think that adding more roads always<00:11:35.720> you<00:11:36.720> know<00:11:36.779> decreases<00:11:37.680> traffic<00:11:38.040> and 00:11:38.509 --> 00:11:38.519 align:start position:0% always you know decreases traffic and 00:11:38.519 --> 00:11:40.250 align:start position:0% always you know decreases traffic and this<00:11:38.820> is<00:11:38.880> not<00:11:39.060> true<00:11:39.360> so<00:11:39.779> there's<00:11:40.079> this 00:11:40.250 --> 00:11:40.260 align:start position:0% this is not true so there's this 00:11:40.260 --> 00:11:41.569 align:start position:0% this is not true so there's this interesting<00:11:40.620> thing<00:11:40.800> of<00:11:40.980> if<00:11:41.160> everyone's 00:11:41.569 --> 00:11:41.579 align:start position:0% interesting thing of if everyone's 00:11:41.579 --> 00:11:44.030 align:start position:0% interesting thing of if everyone's selfishly<00:11:42.000> optimizing<00:11:42.660> if<00:11:43.260> you<00:11:43.380> add<00:11:43.620> a<00:11:43.800> link 00:11:44.030 --> 00:11:44.040 align:start position:0% selfishly optimizing if you add a link 00:11:44.040 --> 00:11:46.310 align:start position:0% selfishly optimizing if you add a link between<00:11:44.640> the<00:11:45.000> two<00:11:45.120> middle<00:11:45.360> cities 00:11:46.310 --> 00:11:46.320 align:start position:0% between the two middle cities 00:11:46.320 --> 00:11:49.370 align:start position:0% between the two middle cities that<00:11:47.040> lets<00:11:47.399> you<00:11:47.459> teleport 00:11:49.370 --> 00:11:49.380 align:start position:0% that lets you teleport 00:11:49.380 --> 00:11:51.889 align:start position:0% that lets you teleport um<00:11:49.440> then<00:11:49.860> everyone<00:11:50.100> just<00:11:50.519> takes<00:11:50.820> the<00:11:51.360> X<00:11:51.540> middle 00:11:51.889 --> 00:11:51.899 align:start position:0% um then everyone just takes the X middle 00:11:51.899 --> 00:11:53.569 align:start position:0% um then everyone just takes the X middle link<00:11:52.140> X<00:11:52.560> path 00:11:53.569 --> 00:11:53.579 align:start position:0% link X path 00:11:53.579 --> 00:11:56.090 align:start position:0% link X path and<00:11:54.360> the<00:11:55.019> total<00:11:55.260> congestion<00:11:55.740> that<00:11:55.920> everyone 00:11:56.090 --> 00:11:56.100 align:start position:0% and the total congestion that everyone 00:11:56.100 --> 00:11:58.670 align:start position:0% and the total congestion that everyone realizes<00:11:56.700> goes<00:11:57.060> up<00:11:57.180> and<00:11:57.720> so<00:11:57.839> the<00:11:58.019> the<00:11:58.200> this 00:11:58.670 --> 00:11:58.680 align:start position:0% realizes goes up and so the the this 00:11:58.680 --> 00:12:01.730 align:start position:0% realizes goes up and so the the this sort<00:11:58.860> of<00:11:58.980> you<00:11:59.579> know<00:11:59.700> paradoxical<00:12:00.540> Behavior<00:12:01.079> Uh 00:12:01.730 --> 00:12:01.740 align:start position:0% sort of you know paradoxical Behavior Uh 00:12:01.740 --> 00:12:03.350 align:start position:0% sort of you know paradoxical Behavior Uh I<00:12:01.920> think<00:12:02.040> philosophers<00:12:02.519> would<00:12:02.700> not<00:12:03.060> call<00:12:03.240> this 00:12:03.350 --> 00:12:03.360 align:start position:0% I think philosophers would not call this 00:12:03.360 --> 00:12:05.750 align:start position:0% I think philosophers would not call this a<00:12:03.480> paradox<00:12:03.839> but<00:12:04.079> but<00:12:04.320> uh<00:12:04.860> economists<00:12:05.459> call<00:12:05.579> the 00:12:05.750 --> 00:12:05.760 align:start position:0% a paradox but but uh economists call the 00:12:05.760 --> 00:12:09.410 align:start position:0% a paradox but but uh economists call the Paradox<00:12:06.120> uh<00:12:07.560> is<00:12:08.160> that<00:12:08.820> you<00:12:09.120> know<00:12:09.180> even<00:12:09.300> though 00:12:09.410 --> 00:12:09.420 align:start position:0% Paradox uh is that you know even though 00:12:09.420 --> 00:12:10.850 align:start position:0% Paradox uh is that you know even though you<00:12:09.540> added<00:12:09.839> a<00:12:10.019> road<00:12:10.140> you've<00:12:10.740> actually 00:12:10.850 --> 00:12:10.860 align:start position:0% you added a road you've actually 00:12:10.860 --> 00:12:12.350 align:start position:0% you added a road you've actually worsened<00:12:11.459> congestion<00:12:11.880> because<00:12:12.120> people 00:12:12.350 --> 00:12:12.360 align:start position:0% worsened congestion because people 00:12:12.360 --> 00:12:13.910 align:start position:0% worsened congestion because people aren't<00:12:12.660> routing<00:12:13.079> themselves<00:12:13.380> across<00:12:13.800> the 00:12:13.910 --> 00:12:13.920 align:start position:0% aren't routing themselves across the 00:12:13.920 --> 00:12:15.350 align:start position:0% aren't routing themselves across the network<00:12:14.100> well<00:12:14.760> because<00:12:14.940> they're<00:12:15.180> not 00:12:15.350 --> 00:12:15.360 align:start position:0% network well because they're not 00:12:15.360 --> 00:12:16.670 align:start position:0% network well because they're not coordinating 00:12:16.670 --> 00:12:16.680 align:start position:0% coordinating 00:12:16.680 --> 00:12:18.410 align:start position:0% coordinating so<00:12:16.980> you<00:12:17.160> might<00:12:17.279> say<00:12:17.459> okay<00:12:17.579> great<00:12:17.940> what<00:12:18.240> does 00:12:18.410 --> 00:12:18.420 align:start position:0% so you might say okay great what does 00:12:18.420 --> 00:12:20.990 align:start position:0% so you might say okay great what does traffic<00:12:18.600> have<00:12:18.899> to<00:12:19.079> do<00:12:19.140> with<00:12:19.260> crypto<00:12:19.680> well<00:12:20.339> you 00:12:20.990 --> 00:12:21.000 align:start position:0% traffic have to do with crypto well you 00:12:21.000 --> 00:12:22.490 align:start position:0% traffic have to do with crypto well you know<00:12:21.120> first 00:12:22.490 --> 00:12:22.500 align:start position:0% know first 00:12:22.500 --> 00:12:24.470 align:start position:0% know first before<00:12:23.040> we<00:12:23.279> even<00:12:23.399> get<00:12:23.640> to<00:12:23.760> that<00:12:23.880> you<00:12:24.180> may<00:12:24.300> think 00:12:24.470 --> 00:12:24.480 align:start position:0% before we even get to that you may think 00:12:24.480 --> 00:12:26.090 align:start position:0% before we even get to that you may think Med<00:12:24.779> is<00:12:25.200> always<00:12:25.320> bad<00:12:25.620> you<00:12:25.800> know<00:12:25.920> there's 00:12:26.090 --> 00:12:26.100 align:start position:0% Med is always bad you know there's 00:12:26.100 --> 00:12:27.710 align:start position:0% Med is always bad you know there's always<00:12:26.279> these<00:12:26.700> articles<00:12:27.000> that<00:12:27.360> people<00:12:27.600> are 00:12:27.710 --> 00:12:27.720 align:start position:0% always these articles that people are 00:12:27.720 --> 00:12:29.090 align:start position:0% always these articles that people are writing<00:12:28.019> that<00:12:28.200> are<00:12:28.380> like 00:12:29.090 --> 00:12:29.100 align:start position:0% writing that are like 00:12:29.100 --> 00:12:31.610 align:start position:0% writing that are like front<00:12:29.459> running<00:12:29.700> is<00:12:30.000> theft<00:12:30.420> it's<00:12:30.600> bribery<00:12:31.140> it's 00:12:31.610 --> 00:12:31.620 align:start position:0% front running is theft it's bribery it's 00:12:31.620 --> 00:12:33.769 align:start position:0% front running is theft it's bribery it's you<00:12:32.040> know<00:12:32.160> whatever<00:12:32.339> you<00:12:32.820> will<00:12:33.120> pick<00:12:33.540> your 00:12:33.769 --> 00:12:33.779 align:start position:0% you know whatever you will pick your 00:12:33.779 --> 00:12:36.230 align:start position:0% you know whatever you will pick your favorite<00:12:34.100> negatively<00:12:35.100> connotated<00:12:35.640> weasel 00:12:36.230 --> 00:12:36.240 align:start position:0% favorite negatively connotated weasel 00:12:36.240 --> 00:12:37.490 align:start position:0% favorite negatively connotated weasel weasel<00:12:36.660> word 00:12:37.490 --> 00:12:37.500 align:start position:0% weasel word 00:12:37.500 --> 00:12:40.670 align:start position:0% weasel word and<00:12:38.240> you<00:12:39.240> might<00:12:39.360> just<00:12:39.480> say<00:12:39.600> okay<00:12:39.839> like<00:12:40.140> yeah<00:12:40.380> it 00:12:40.670 --> 00:12:40.680 align:start position:0% and you might just say okay like yeah it 00:12:40.680 --> 00:12:42.949 align:start position:0% and you might just say okay like yeah it we<00:12:41.040> we<00:12:41.100> need<00:12:41.700> to<00:12:41.820> get<00:12:41.940> rid<00:12:42.060> of<00:12:42.240> it<00:12:42.360> at<00:12:42.540> all<00:12:42.660> costs 00:12:42.949 --> 00:12:42.959 align:start position:0% we we need to get rid of it at all costs 00:12:42.959 --> 00:12:44.389 align:start position:0% we we need to get rid of it at all costs with<00:12:43.260> that<00:12:43.380> instead<00:12:43.740> of<00:12:43.800> thinking<00:12:44.040> hey<00:12:44.220> maybe 00:12:44.389 --> 00:12:44.399 align:start position:0% with that instead of thinking hey maybe 00:12:44.399 --> 00:12:46.610 align:start position:0% with that instead of thinking hey maybe maybe<00:12:44.700> it's<00:12:44.940> just<00:12:45.120> endemic<00:12:45.600> to<00:12:45.839> such<00:12:46.079> systems 00:12:46.610 --> 00:12:46.620 align:start position:0% maybe it's just endemic to such systems 00:12:46.620 --> 00:12:49.310 align:start position:0% maybe it's just endemic to such systems we<00:12:47.459> we<00:12:47.519> saw<00:12:48.000> abrasive<00:12:48.360> Paradox<00:12:48.779> and<00:12:49.079> what 00:12:49.310 --> 00:12:49.320 align:start position:0% we we saw abrasive Paradox and what 00:12:49.320 --> 00:12:50.329 align:start position:0% we we saw abrasive Paradox and what we're<00:12:49.440> going<00:12:49.560> to<00:12:49.740> see<00:12:49.800> is<00:12:49.980> we're<00:12:50.100> going<00:12:50.220> to<00:12:50.279> see 00:12:50.329 --> 00:12:50.339 align:start position:0% we're going to see is we're going to see 00:12:50.339 --> 00:12:53.210 align:start position:0% we're going to see is we're going to see that<00:12:50.459> for<00:12:50.760> some<00:12:51.060> examples<00:12:51.839> of<00:12:52.560> applications 00:12:53.210 --> 00:12:53.220 align:start position:0% that for some examples of applications 00:12:53.220 --> 00:12:55.910 align:start position:0% that for some examples of applications in<00:12:53.579> crypto<00:12:54.000> you<00:12:54.779> can<00:12:54.899> get<00:12:55.079> around<00:12:55.320> braces 00:12:55.910 --> 00:12:55.920 align:start position:0% in crypto you can get around braces 00:12:55.920 --> 00:12:58.610 align:start position:0% in crypto you can get around braces Paradox<00:12:56.459> by<00:12:57.300> having<00:12:57.540> nav<00:12:57.779> which<00:12:58.200> sort<00:12:58.380> of<00:12:58.440> says 00:12:58.610 --> 00:12:58.620 align:start position:0% Paradox by having nav which sort of says 00:12:58.620 --> 00:13:00.650 align:start position:0% Paradox by having nav which sort of says Mev<00:12:58.980> has<00:12:59.220> some<00:12:59.459> positive<00:12:59.760> externality<00:13:00.420> in 00:13:00.650 --> 00:13:00.660 align:start position:0% Mev has some positive externality in 00:13:00.660 --> 00:13:03.350 align:start position:0% Mev has some positive externality in some<00:13:00.839> situations<00:13:01.260> which<00:13:01.920> is<00:13:02.100> you<00:13:02.639> know<00:13:02.760> the 00:13:03.350 --> 00:13:03.360 align:start position:0% some situations which is you know the 00:13:03.360 --> 00:13:05.990 align:start position:0% some situations which is you know the opposite<00:13:03.720> of<00:13:04.139> front<00:13:04.860> running<00:13:05.040> is<00:13:05.339> theft<00:13:05.700> as<00:13:05.820> a 00:13:05.990 --> 00:13:06.000 align:start position:0% opposite of front running is theft as a 00:13:06.000 --> 00:13:08.930 align:start position:0% opposite of front running is theft as a service<00:13:06.120> or<00:13:06.480> whatever 00:13:08.930 --> 00:13:08.940 align:start position:0% 00:13:08.940 --> 00:13:11.090 align:start position:0% um<00:13:09.000> and<00:13:09.420> again<00:13:09.540> not<00:13:10.380> all<00:13:10.560> applications<00:13:10.920> are 00:13:11.090 --> 00:13:11.100 align:start position:0% um and again not all applications are 00:13:11.100 --> 00:13:12.710 align:start position:0% um and again not all applications are the<00:13:11.279> same<00:13:11.399> so<00:13:11.639> that<00:13:11.940> that's<00:13:12.180> where<00:13:12.420> the<00:13:12.540> the 00:13:12.710 --> 00:13:12.720 align:start position:0% the same so that that's where the the 00:13:12.720 --> 00:13:14.690 align:start position:0% the same so that that's where the the conundrum<00:13:13.139> in<00:13:13.380> defining<00:13:13.860> your<00:13:14.100> sort<00:13:14.579> of 00:13:14.690 --> 00:13:14.700 align:start position:0% conundrum in defining your sort of 00:13:14.700 --> 00:13:18.350 align:start position:0% conundrum in defining your sort of optimization<00:13:15.600> problem<00:13:15.959> shows<00:13:16.620> up 00:13:18.350 --> 00:13:18.360 align:start position:0% optimization problem shows up 00:13:18.360 --> 00:13:19.730 align:start position:0% optimization problem shows up um<00:13:18.480> another<00:13:18.720> thing<00:13:18.959> that's<00:13:19.139> actually<00:13:19.380> really 00:13:19.730 --> 00:13:19.740 align:start position:0% um another thing that's actually really 00:13:19.740 --> 00:13:22.129 align:start position:0% um another thing that's actually really important<00:13:20.100> to<00:13:20.399> pay<00:13:20.579> attention<00:13:20.880> to<00:13:21.060> is<00:13:21.240> if<00:13:21.959> we 00:13:22.129 --> 00:13:22.139 align:start position:0% important to pay attention to is if we 00:13:22.139 --> 00:13:24.530 align:start position:0% important to pay attention to is if we classify<00:13:22.740> users<00:13:23.160> into<00:13:23.399> two<00:13:23.700> types<00:13:24.060> of<00:13:24.180> users 00:13:24.530 --> 00:13:24.540 align:start position:0% classify users into two types of users 00:13:24.540 --> 00:13:27.470 align:start position:0% classify users into two types of users strategic<00:13:25.440> users<00:13:25.860> who<00:13:26.220> are<00:13:26.339> Mev<00:13:26.880> Searchers<00:13:27.240> or 00:13:27.470 --> 00:13:27.480 align:start position:0% strategic users who are Mev Searchers or 00:13:27.480 --> 00:13:29.030 align:start position:0% strategic users who are Mev Searchers or people<00:13:27.660> who<00:13:27.839> are<00:13:27.959> trying<00:13:28.079> to<00:13:28.200> optimize<00:13:28.560> routes 00:13:29.030 --> 00:13:29.040 align:start position:0% people who are trying to optimize routes 00:13:29.040 --> 00:13:31.730 align:start position:0% people who are trying to optimize routes on<00:13:29.399> chain<00:13:29.760> and<00:13:30.360> non-strategic<00:13:31.019> user<00:13:31.380> like<00:13:31.560> the 00:13:31.730 --> 00:13:31.740 align:start position:0% on chain and non-strategic user like the 00:13:31.740 --> 00:13:33.949 align:start position:0% on chain and non-strategic user like the person<00:13:31.920> who<00:13:32.399> pays<00:13:32.760> 80<00:13:32.880> bips<00:13:33.300> for<00:13:33.480> a<00:13:33.600> metamask 00:13:33.949 --> 00:13:33.959 align:start position:0% person who pays 80 bips for a metamask 00:13:33.959 --> 00:13:36.410 align:start position:0% person who pays 80 bips for a metamask swap<00:13:34.380> if<00:13:35.220> we<00:13:35.399> kind<00:13:35.519> of<00:13:35.579> look<00:13:35.820> at<00:13:36.000> you<00:13:36.360> know 00:13:36.410 --> 00:13:36.420 align:start position:0% swap if we kind of look at you know 00:13:36.420 --> 00:13:39.050 align:start position:0% swap if we kind of look at you know those<00:13:36.839> two<00:13:37.079> two<00:13:37.440> sides<00:13:37.920> routing<00:13:38.760> is<00:13:38.940> actually 00:13:39.050 --> 00:13:39.060 align:start position:0% those two two sides routing is actually 00:13:39.060 --> 00:13:40.310 align:start position:0% those two two sides routing is actually one<00:13:39.240> of<00:13:39.360> the<00:13:39.480> hardest<00:13:39.779> problems<00:13:40.079> for 00:13:40.310 --> 00:13:40.320 align:start position:0% one of the hardest problems for 00:13:40.320 --> 00:13:42.170 align:start position:0% one of the hardest problems for non-strategic<00:13:40.980> users<00:13:41.339> so<00:13:41.519> non-strategic 00:13:42.170 --> 00:13:42.180 align:start position:0% non-strategic users so non-strategic 00:13:42.180 --> 00:13:44.269 align:start position:0% non-strategic users so non-strategic users<00:13:42.540> actually<00:13:42.839> in<00:13:43.260> fact<00:13:43.380> Outsource<00:13:43.980> that<00:13:44.100> to 00:13:44.269 --> 00:13:44.279 align:start position:0% users actually in fact Outsource that to 00:13:44.279 --> 00:13:46.250 align:start position:0% users actually in fact Outsource that to third<00:13:44.399> parties<00:13:44.820> right<00:13:45.060> now<00:13:45.180> right<00:13:45.360> so<00:13:45.720> if<00:13:46.139> I 00:13:46.250 --> 00:13:46.260 align:start position:0% third parties right now right so if I 00:13:46.260 --> 00:13:48.590 align:start position:0% third parties right now right so if I want<00:13:46.380> to<00:13:46.500> trade<00:13:46.680> token<00:13:47.040> a<00:13:47.160> for<00:13:47.399> token<00:13:47.760> B<00:13:47.880> but 00:13:48.590 --> 00:13:48.600 align:start position:0% want to trade token a for token B but 00:13:48.600 --> 00:13:50.930 align:start position:0% want to trade token a for token B but there's<00:13:48.779> no<00:13:49.079> pool<00:13:49.260> directly<00:13:49.740> from<00:13:50.399> A<00:13:50.519> to<00:13:50.639> B<00:13:50.760> or 00:13:50.930 --> 00:13:50.940 align:start position:0% there's no pool directly from A to B or 00:13:50.940 --> 00:13:52.790 align:start position:0% there's no pool directly from A to B or there's<00:13:51.120> not<00:13:51.240> enough<00:13:51.300> liquidity<00:13:52.200> you<00:13:52.620> know<00:13:52.680> I 00:13:52.790 --> 00:13:52.800 align:start position:0% there's not enough liquidity you know I 00:13:52.800 --> 00:13:55.250 align:start position:0% there's not enough liquidity you know I go<00:13:52.920> to<00:13:53.040> one<00:13:53.160> inch<00:13:53.459> matcha<00:13:53.880> gem<00:13:54.360> I'm<00:13:54.839> including 00:13:55.250 --> 00:13:55.260 align:start position:0% go to one inch matcha gem I'm including 00:13:55.260 --> 00:13:56.509 align:start position:0% go to one inch matcha gem I'm including gem<00:13:55.440> from<00:13:55.680> the<00:13:55.800> you<00:13:56.040> know<00:13:56.100> you<00:13:56.220> could<00:13:56.339> argue 00:13:56.509 --> 00:13:56.519 align:start position:0% gem from the you know you could argue 00:13:56.519 --> 00:13:59.389 align:start position:0% gem from the you know you could argue nfts<00:13:57.000> have<00:13:57.120> the<00:13:57.240> same<00:13:57.420> properties 00:13:59.389 --> 00:13:59.399 align:start position:0% nfts have the same properties 00:13:59.399 --> 00:14:01.850 align:start position:0% nfts have the same properties um<00:13:59.660> and<00:14:00.660> you<00:14:01.079> know<00:14:01.200> routing<00:14:01.560> is<00:14:01.740> actually 00:14:01.850 --> 00:14:01.860 align:start position:0% um and you know routing is actually 00:14:01.860 --> 00:14:03.829 align:start position:0% um and you know routing is actually quite<00:14:02.100> complicated<00:14:02.760> so<00:14:03.480> you<00:14:03.720> know 00:14:03.829 --> 00:14:03.839 align:start position:0% quite complicated so you know 00:14:03.839 --> 00:14:05.150 align:start position:0% quite complicated so you know algorithmic<00:14:04.380> game<00:14:04.560> theory<00:14:04.800> is<00:14:04.920> studied 00:14:05.150 --> 00:14:05.160 align:start position:0% algorithmic game theory is studied 00:14:05.160 --> 00:14:07.370 align:start position:0% algorithmic game theory is studied routing<00:14:05.519> in<00:14:05.760> fact<00:14:05.940> braces<00:14:06.420> Paradox<00:14:06.839> is<00:14:07.079> a 00:14:07.370 --> 00:14:07.380 align:start position:0% routing in fact braces Paradox is a 00:14:07.380 --> 00:14:10.009 align:start position:0% routing in fact braces Paradox is a great<00:14:07.740> example<00:14:08.160> of<00:14:08.339> of<00:14:08.579> how<00:14:08.940> how<00:14:09.540> to<00:14:09.720> study 00:14:10.009 --> 00:14:10.019 align:start position:0% great example of of how how to study 00:14:10.019 --> 00:14:11.030 align:start position:0% great example of of how how to study routing 00:14:11.030 --> 00:14:11.040 align:start position:0% routing 00:14:11.040 --> 00:14:13.610 align:start position:0% routing uh<00:14:11.820> and<00:14:12.120> one<00:14:12.420> question<00:14:12.600> you<00:14:12.839> might<00:14:12.959> ask<00:14:13.139> is<00:14:13.320> hey 00:14:13.610 --> 00:14:13.620 align:start position:0% uh and one question you might ask is hey 00:14:13.620 --> 00:14:15.350 align:start position:0% uh and one question you might ask is hey does<00:14:13.800> this<00:14:13.980> apply<00:14:14.220> to<00:14:14.339> amms<00:14:14.820> does<00:14:15.000> this<00:14:15.120> apply 00:14:15.350 --> 00:14:15.360 align:start position:0% does this apply to amms does this apply 00:14:15.360 --> 00:14:17.389 align:start position:0% does this apply to amms does this apply to<00:14:15.480> one<00:14:15.600> inch<00:14:15.839> to<00:14:15.959> supply<00:14:16.079> the<00:14:16.380> mantra 00:14:17.389 --> 00:14:17.399 align:start position:0% to one inch to supply the mantra 00:14:17.399 --> 00:14:19.670 align:start position:0% to one inch to supply the mantra and<00:14:17.940> the<00:14:18.060> interesting<00:14:18.480> thing<00:14:18.779> that<00:14:19.440> you'll 00:14:19.670 --> 00:14:19.680 align:start position:0% and the interesting thing that you'll 00:14:19.680 --> 00:14:22.250 align:start position:0% and the interesting thing that you'll see<00:14:19.800> is<00:14:20.519> now<00:14:20.700> imagine<00:14:20.940> in<00:14:21.480> this<00:14:21.660> prior<00:14:21.899> example 00:14:22.250 --> 00:14:22.260 align:start position:0% see is now imagine in this prior example 00:14:22.260 --> 00:14:23.569 align:start position:0% see is now imagine in this prior example instead<00:14:22.620> of<00:14:22.680> teleporting<00:14:23.220> in<00:14:23.399> the<00:14:23.519> middle 00:14:23.569 --> 00:14:23.579 align:start position:0% instead of teleporting in the middle 00:14:23.579 --> 00:14:26.030 align:start position:0% instead of teleporting in the middle link<00:14:23.880> we<00:14:24.720> actually<00:14:24.899> add<00:14:25.200> a<00:14:25.440> small<00:14:25.620> amount<00:14:25.920> of 00:14:26.030 --> 00:14:26.040 align:start position:0% link we actually add a small amount of 00:14:26.040 --> 00:14:29.870 align:start position:0% link we actually add a small amount of congestion<00:14:26.720> Epsilon<00:14:27.720> times<00:14:28.079> the<00:14:28.740> traffic<00:14:29.160> now 00:14:29.870 --> 00:14:29.880 align:start position:0% congestion Epsilon times the traffic now 00:14:29.880 --> 00:14:31.370 align:start position:0% congestion Epsilon times the traffic now you<00:14:30.060> can<00:14:30.120> show<00:14:30.240> that<00:14:30.420> equilibria<00:14:30.959> basically 00:14:31.370 --> 00:14:31.380 align:start position:0% you can show that equilibria basically 00:14:31.380 --> 00:14:34.910 align:start position:0% you can show that equilibria basically approaches<00:14:32.040> something<00:14:32.459> uh<00:14:33.360> as<00:14:34.139> Epsilon<00:14:34.560> gets 00:14:34.910 --> 00:14:34.920 align:start position:0% approaches something uh as Epsilon gets 00:14:34.920 --> 00:14:37.550 align:start position:0% approaches something uh as Epsilon gets really<00:14:35.100> large<00:14:35.600> you<00:14:36.600> go<00:14:36.779> back<00:14:36.959> to<00:14:37.260> the 00:14:37.550 --> 00:14:37.560 align:start position:0% really large you go back to the 00:14:37.560 --> 00:14:39.410 align:start position:0% really large you go back to the condition<00:14:37.800> where<00:14:38.459> everyone<00:14:38.940> routes 00:14:39.410 --> 00:14:39.420 align:start position:0% condition where everyone routes 00:14:39.420 --> 00:14:41.210 align:start position:0% condition where everyone routes themselves<00:14:39.660> across<00:14:40.019> the<00:14:40.139> two<00:14:40.260> paths<00:14:40.620> and<00:14:41.040> when 00:14:41.210 --> 00:14:41.220 align:start position:0% themselves across the two paths and when 00:14:41.220 --> 00:14:42.710 align:start position:0% themselves across the two paths and when Epsilon<00:14:41.639> is<00:14:41.760> really<00:14:41.880> small<00:14:42.060> you<00:14:42.240> get<00:14:42.360> back<00:14:42.540> to 00:14:42.710 --> 00:14:42.720 align:start position:0% Epsilon is really small you get back to 00:14:42.720 --> 00:14:44.569 align:start position:0% Epsilon is really small you get back to the<00:14:42.839> the<00:14:42.959> purely<00:14:43.320> selfish<00:14:43.740> thing<00:14:43.860> and<00:14:44.459> the 00:14:44.569 --> 00:14:44.579 align:start position:0% the the purely selfish thing and the 00:14:44.579 --> 00:14:47.449 align:start position:0% the the purely selfish thing and the idea<00:14:44.760> is<00:14:44.940> the<00:14:45.300> Mev<00:14:46.199> Searchers<00:14:46.860> are<00:14:47.220> actually 00:14:47.449 --> 00:14:47.459 align:start position:0% idea is the Mev Searchers are actually 00:14:47.459 --> 00:14:49.610 align:start position:0% idea is the Mev Searchers are actually adding<00:14:48.000> this<00:14:48.240> extra<00:14:48.480> Epsilon<00:14:49.079> so<00:14:49.320> that<00:14:49.500> people 00:14:49.610 --> 00:14:49.620 align:start position:0% adding this extra Epsilon so that people 00:14:49.620 --> 00:14:51.350 align:start position:0% adding this extra Epsilon so that people route<00:14:49.920> themselves<00:14:50.399> across<00:14:50.820> the<00:14:50.880> graph<00:14:51.120> more 00:14:51.350 --> 00:14:51.360 align:start position:0% route themselves across the graph more 00:14:51.360 --> 00:14:53.569 align:start position:0% route themselves across the graph more efficiently<00:14:51.779> and<00:14:52.620> that's<00:14:52.860> something<00:14:53.220> that's 00:14:53.569 --> 00:14:53.579 align:start position:0% efficiently and that's something that's 00:14:53.579 --> 00:14:57.050 align:start position:0% efficiently and that's something that's a<00:14:53.940> weird<00:14:54.420> positive<00:14:54.959> externality<00:14:55.620> that<00:14:56.399> if<00:14:56.880> you 00:14:57.050 --> 00:14:57.060 align:start position:0% a weird positive externality that if you 00:14:57.060 --> 00:14:59.810 align:start position:0% a weird positive externality that if you write<00:14:57.420> out<00:14:57.600> the<00:14:57.779> math<00:14:57.899> you<00:14:58.260> know<00:14:58.440> I<00:14:58.620> I<00:14:59.339> try<00:14:59.579> to 00:14:59.810 --> 00:14:59.820 align:start position:0% write out the math you know I I try to 00:14:59.820 --> 00:15:01.730 align:start position:0% write out the math you know I I try to not<00:15:00.060> add<00:15:00.420> a<00:15:00.660> lot<00:15:00.839> of<00:15:00.899> the<00:15:00.959> equations<00:15:01.260> to<00:15:01.620> this 00:15:01.730 --> 00:15:01.740 align:start position:0% not add a lot of the equations to this 00:15:01.740 --> 00:15:04.129 align:start position:0% not add a lot of the equations to this talk<00:15:01.860> but<00:15:02.360> if<00:15:03.360> you<00:15:03.420> write<00:15:03.540> out<00:15:03.660> the<00:15:03.839> math<00:15:03.899> it's 00:15:04.129 --> 00:15:04.139 align:start position:0% talk but if you write out the math it's 00:15:04.139 --> 00:15:05.750 align:start position:0% talk but if you write out the math it's actually<00:15:04.320> quite<00:15:04.800> compelling<00:15:05.399> that<00:15:05.579> the 00:15:05.750 --> 00:15:05.760 align:start position:0% actually quite compelling that the 00:15:05.760 --> 00:15:07.910 align:start position:0% actually quite compelling that the social<00:15:05.880> welfare<00:15:06.360> somehow<00:15:06.839> has<00:15:06.959> improved<00:15:07.560> by 00:15:07.910 --> 00:15:07.920 align:start position:0% social welfare somehow has improved by 00:15:07.920 --> 00:15:10.490 align:start position:0% social welfare somehow has improved by Mev<00:15:08.399> in<00:15:08.880> some<00:15:09.060> scenarios<00:15:09.720> right<00:15:09.899> that's<00:15:10.320> not 00:15:10.490 --> 00:15:10.500 align:start position:0% Mev in some scenarios right that's not 00:15:10.500 --> 00:15:11.810 align:start position:0% Mev in some scenarios right that's not the<00:15:10.680> narrative<00:15:10.980> you<00:15:11.220> hear<00:15:11.399> right<00:15:11.579> the 00:15:11.810 --> 00:15:11.820 align:start position:0% the narrative you hear right the 00:15:11.820 --> 00:15:13.490 align:start position:0% the narrative you hear right the narrative<00:15:12.060> you<00:15:12.240> hear<00:15:12.360> is<00:15:12.480> like<00:15:12.720> oh<00:15:13.079> I'm<00:15:13.320> just 00:15:13.490 --> 00:15:13.500 align:start position:0% narrative you hear is like oh I'm just 00:15:13.500 --> 00:15:15.110 align:start position:0% narrative you hear is like oh I'm just grannies<00:15:13.980> are<00:15:14.100> getting<00:15:14.279> robbed<00:15:14.579> in<00:15:14.699> metamask 00:15:15.110 --> 00:15:15.120 align:start position:0% grannies are getting robbed in metamask 00:15:15.120 --> 00:15:17.870 align:start position:0% grannies are getting robbed in metamask and<00:15:15.360> that's<00:15:15.540> just<00:15:15.720> not<00:15:15.839> true<00:15:16.079> always<00:15:16.680> so<00:15:17.160> I<00:15:17.339> uh 00:15:17.870 --> 00:15:17.880 align:start position:0% and that's just not true always so I uh 00:15:17.880 --> 00:15:19.970 align:start position:0% and that's just not true always so I uh like<00:15:18.060> I<00:15:18.180> said<00:15:18.300> I'm<00:15:18.420> not<00:15:18.779> gonna<00:15:18.899> go<00:15:19.500> through<00:15:19.680> how 00:15:19.970 --> 00:15:19.980 align:start position:0% like I said I'm not gonna go through how 00:15:19.980 --> 00:15:21.889 align:start position:0% like I said I'm not gonna go through how you<00:15:20.100> show<00:15:20.459> such<00:15:20.699> a<00:15:20.820> thing<00:15:20.940> but<00:15:21.180> I'll<00:15:21.540> at<00:15:21.839> least 00:15:21.889 --> 00:15:21.899 align:start position:0% you show such a thing but I'll at least 00:15:21.899 --> 00:15:23.750 align:start position:0% you show such a thing but I'll at least give<00:15:22.260> you<00:15:22.380> an<00:15:22.500> idea<00:15:22.740> of<00:15:22.800> like<00:15:22.920> what<00:15:23.279> such<00:15:23.519> the 00:15:23.750 --> 00:15:23.760 align:start position:0% give you an idea of like what such the 00:15:23.760 --> 00:15:25.009 align:start position:0% give you an idea of like what such the theorem<00:15:24.060> statement<00:15:24.360> looks<00:15:24.600> like<00:15:24.660> for<00:15:24.839> such 00:15:25.009 --> 00:15:25.019 align:start position:0% theorem statement looks like for such 00:15:25.019 --> 00:15:26.030 align:start position:0% theorem statement looks like for such thing 00:15:26.030 --> 00:15:26.040 align:start position:0% thing 00:15:26.040 --> 00:15:28.730 align:start position:0% thing and<00:15:26.399> the<00:15:26.519> idea<00:15:26.760> is<00:15:26.880> is<00:15:27.180> we<00:15:27.600> we<00:15:28.199> showed<00:15:28.680> that 00:15:28.730 --> 00:15:28.740 align:start position:0% and the idea is is we we showed that 00:15:28.740 --> 00:15:30.949 align:start position:0% and the idea is is we we showed that even<00:15:28.920> when<00:15:29.220> they're<00:15:29.399> sandwichers<00:15:29.940> the<00:15:30.839> price 00:15:30.949 --> 00:15:30.959 align:start position:0% even when they're sandwichers the price 00:15:30.959 --> 00:15:32.930 align:start position:0% even when they're sandwichers the price of<00:15:31.139> Anarchy<00:15:31.560> is<00:15:31.620> constant<00:15:32.040> remember<00:15:32.339> price<00:15:32.760> of 00:15:32.930 --> 00:15:32.940 align:start position:0% of Anarchy is constant remember price of 00:15:32.940 --> 00:15:35.269 align:start position:0% of Anarchy is constant remember price of Anarchy<00:15:33.300> constant<00:15:33.600> that's<00:15:33.779> good<00:15:34.079> that's<00:15:35.040> very 00:15:35.269 --> 00:15:35.279 align:start position:0% Anarchy constant that's good that's very 00:15:35.279 --> 00:15:36.889 align:start position:0% Anarchy constant that's good that's very surprising<00:15:35.699> you<00:15:35.940> would<00:15:36.060> think<00:15:36.180> that<00:15:36.360> hey<00:15:36.600> as 00:15:36.889 --> 00:15:36.899 align:start position:0% surprising you would think that hey as 00:15:36.899 --> 00:15:38.389 align:start position:0% surprising you would think that hey as more<00:15:37.139> users<00:15:37.500> come<00:15:37.680> to<00:15:37.800> network<00:15:37.980> sandwich 00:15:38.389 --> 00:15:38.399 align:start position:0% more users come to network sandwich 00:15:38.399 --> 00:15:39.889 align:start position:0% more users come to network sandwich attackers<00:15:38.940> make<00:15:39.120> more<00:15:39.300> of<00:15:39.420> a<00:15:39.540> profit<00:15:39.720> they 00:15:39.889 --> 00:15:39.899 align:start position:0% attackers make more of a profit they 00:15:39.899 --> 00:15:41.509 align:start position:0% attackers make more of a profit they cause<00:15:40.019> more<00:15:40.320> of<00:15:40.440> a<00:15:40.560> loss<00:15:40.740> but<00:15:41.220> in<00:15:41.339> some 00:15:41.509 --> 00:15:41.519 align:start position:0% cause more of a loss but in some 00:15:41.519 --> 00:15:43.850 align:start position:0% cause more of a loss but in some liquidity<00:15:42.000> conditions<00:15:42.420> they<00:15:42.600> do<00:15:42.779> not<00:15:42.959> and 00:15:43.850 --> 00:15:43.860 align:start position:0% liquidity conditions they do not and 00:15:43.860 --> 00:15:46.430 align:start position:0% liquidity conditions they do not and this<00:15:44.040> this<00:15:44.279> sort<00:15:44.519> of<00:15:44.639> bottom<00:15:45.120> chart<00:15:45.839> shows<00:15:46.380> you 00:15:46.430 --> 00:15:46.440 align:start position:0% this this sort of bottom chart shows you 00:15:46.440 --> 00:15:48.650 align:start position:0% this this sort of bottom chart shows you the<00:15:46.740> expected<00:15:47.160> profit<00:15:47.519> on<00:15:47.760> the<00:15:47.820> y-axis<00:15:48.300> and<00:15:48.480> it 00:15:48.650 --> 00:15:48.660 align:start position:0% the expected profit on the y-axis and it 00:15:48.660 --> 00:15:50.689 align:start position:0% the expected profit on the y-axis and it shows<00:15:48.959> you<00:15:49.019> sort<00:15:49.620> of<00:15:49.680> the<00:15:49.920> amount<00:15:50.220> of<00:15:50.339> slippage 00:15:50.689 --> 00:15:50.699 align:start position:0% shows you sort of the amount of slippage 00:15:50.699 --> 00:15:53.509 align:start position:0% shows you sort of the amount of slippage in<00:15:51.000> your<00:15:51.360> by<00:15:51.660> the<00:15:51.899> the<00:15:52.260> user<00:15:52.680> and<00:15:53.160> you'll<00:15:53.339> see 00:15:53.509 --> 00:15:53.519 align:start position:0% in your by the the user and you'll see 00:15:53.519 --> 00:15:55.550 align:start position:0% in your by the the user and you'll see that<00:15:53.820> it<00:15:54.060> has<00:15:54.240> a<00:15:54.360> Maxima<00:15:54.779> it's<00:15:55.019> not<00:15:55.199> like<00:15:55.380> it 00:15:55.550 --> 00:15:55.560 align:start position:0% that it has a Maxima it's not like it 00:15:55.560 --> 00:15:57.230 align:start position:0% that it has a Maxima it's not like it keeps<00:15:55.860> growing<00:15:56.160> and<00:15:56.399> that<00:15:56.579> that's<00:15:56.820> the<00:15:57.120> thing 00:15:57.230 --> 00:15:57.240 align:start position:0% keeps growing and that that's the thing 00:15:57.240 --> 00:15:59.810 align:start position:0% keeps growing and that that's the thing that's<00:15:57.480> actually<00:15:57.720> quite<00:15:58.579> interesting<00:15:59.579> and 00:15:59.810 --> 00:15:59.820 align:start position:0% that's actually quite interesting and 00:15:59.820 --> 00:16:01.550 align:start position:0% that's actually quite interesting and nice<00:16:00.000> about<00:16:00.240> this<00:16:00.540> example 00:16:01.550 --> 00:16:01.560 align:start position:0% nice about this example 00:16:01.560 --> 00:16:04.129 align:start position:0% nice about this example so<00:16:02.160> you've<00:16:02.459> listened<00:16:02.699> to<00:16:02.760> me<00:16:02.940> try<00:16:03.360> to<00:16:03.540> convince 00:16:04.129 --> 00:16:04.139 align:start position:0% so you've listened to me try to convince 00:16:04.139 --> 00:16:06.470 align:start position:0% so you've listened to me try to convince you<00:16:04.260> that<00:16:04.620> mev's<00:16:05.399> not<00:16:05.519> bad<00:16:05.699> it<00:16:05.940> can<00:16:06.120> have<00:16:06.300> these 00:16:06.470 --> 00:16:06.480 align:start position:0% you that mev's not bad it can have these 00:16:06.480 --> 00:16:07.850 align:start position:0% you that mev's not bad it can have these positive<00:16:06.720> externalities<00:16:07.320> maybe<00:16:07.680> there's 00:16:07.850 --> 00:16:07.860 align:start position:0% positive externalities maybe there's 00:16:07.860 --> 00:16:10.430 align:start position:0% positive externalities maybe there's something<00:16:08.160> really<00:16:08.459> interesting<00:16:09.019> uh<00:16:10.019> about<00:16:10.199> it 00:16:10.430 --> 00:16:10.440 align:start position:0% something really interesting uh about it 00:16:10.440 --> 00:16:12.949 align:start position:0% something really interesting uh about it and<00:16:10.620> maybe<00:16:10.800> you<00:16:10.980> can<00:16:11.100> direct<00:16:11.279> it<00:16:11.579> into<00:16:12.180> uh 00:16:12.949 --> 00:16:12.959 align:start position:0% and maybe you can direct it into uh 00:16:12.959 --> 00:16:14.449 align:start position:0% and maybe you can direct it into uh being<00:16:13.320> used<00:16:13.500> for<00:16:13.800> some<00:16:14.040> particular 00:16:14.449 --> 00:16:14.459 align:start position:0% being used for some particular 00:16:14.459 --> 00:16:18.470 align:start position:0% being used for some particular applications<00:16:15.060> that<00:16:15.920> uh<00:16:16.920> are<00:16:17.820> just<00:16:18.000> net<00:16:18.240> net 00:16:18.470 --> 00:16:18.480 align:start position:0% applications that uh are just net net 00:16:18.480 --> 00:16:20.810 align:start position:0% applications that uh are just net net beneficial<00:16:19.380> to<00:16:19.560> your<00:16:19.800> network<00:16:19.980> so<00:16:20.639> one 00:16:20.810 --> 00:16:20.820 align:start position:0% beneficial to your network so one 00:16:20.820 --> 00:16:22.730 align:start position:0% beneficial to your network so one question<00:16:20.940> is<00:16:21.120> what<00:16:21.360> do<00:16:21.480> you<00:16:21.540> do<00:16:21.720> to<00:16:22.019> to<00:16:22.199> harness 00:16:22.730 --> 00:16:22.740 align:start position:0% question is what do you do to to harness 00:16:22.740 --> 00:16:24.710 align:start position:0% question is what do you do to to harness it<00:16:22.920> for<00:16:23.100> good 00:16:24.710 --> 00:16:24.720 align:start position:0% it for good 00:16:24.720 --> 00:16:26.210 align:start position:0% it for good so<00:16:25.019> one<00:16:25.199> thing<00:16:25.320> I<00:16:25.500> think<00:16:25.620> that's<00:16:25.740> interesting 00:16:26.210 --> 00:16:26.220 align:start position:0% so one thing I think that's interesting 00:16:26.220 --> 00:16:28.129 align:start position:0% so one thing I think that's interesting and<00:16:26.519> and<00:16:26.639> this<00:16:26.880> goes<00:16:27.120> a<00:16:27.240> little<00:16:27.240> bit<00:16:27.420> to<00:16:27.600> Alex's 00:16:28.129 --> 00:16:28.139 align:start position:0% and and this goes a little bit to Alex's 00:16:28.139 --> 00:16:29.689 align:start position:0% and and this goes a little bit to Alex's talk<00:16:28.320> before 00:16:29.689 --> 00:16:29.699 align:start position:0% talk before 00:16:29.699 --> 00:16:31.129 align:start position:0% talk before is 00:16:31.129 --> 00:16:31.139 align:start position:0% is 00:16:31.139 --> 00:16:34.910 align:start position:0% is suppose<00:16:32.100> you<00:16:32.339> did<00:16:32.579> have<00:16:32.880> a<00:16:33.180> mechanism<00:16:33.920> where 00:16:34.910 --> 00:16:34.920 align:start position:0% suppose you did have a mechanism where 00:16:34.920 --> 00:16:37.670 align:start position:0% suppose you did have a mechanism where it<00:16:35.279> was<00:16:35.399> just<00:16:35.579> extremely<00:16:36.060> expensive<00:16:36.720> for 00:16:37.670 --> 00:16:37.680 align:start position:0% it was just extremely expensive for 00:16:37.680 --> 00:16:41.230 align:start position:0% it was just extremely expensive for people<00:16:38.519> to<00:16:38.940> bribe<00:16:39.540> a<00:16:39.660> validator<00:16:40.019> off<00:16:40.320> chain 00:16:41.230 --> 00:16:41.240 align:start position:0% people to bribe a validator off chain 00:16:41.240 --> 00:16:44.389 align:start position:0% people to bribe a validator off chain and<00:16:42.240> in<00:16:42.959> fact<00:16:43.079> people<00:16:43.620> were<00:16:43.920> willing<00:16:44.220> to 00:16:44.389 --> 00:16:44.399 align:start position:0% and in fact people were willing to 00:16:44.399 --> 00:16:45.829 align:start position:0% and in fact people were willing to basically 00:16:45.829 --> 00:16:45.839 align:start position:0% basically 00:16:45.839 --> 00:16:48.710 align:start position:0% basically uh<00:16:46.800> share<00:16:47.279> their<00:16:47.519> Mev<00:16:47.880> Revenue<00:16:48.120> imagine<00:16:48.360> like 00:16:48.710 --> 00:16:48.720 align:start position:0% uh share their Mev Revenue imagine like 00:16:48.720 --> 00:16:50.449 align:start position:0% uh share their Mev Revenue imagine like a<00:16:48.899> mining<00:16:49.139> pool<00:16:49.259> for<00:16:49.500> Mev<00:16:49.860> Revenue<00:16:50.100> now<00:16:50.279> the 00:16:50.449 --> 00:16:50.459 align:start position:0% a mining pool for Mev Revenue now the 00:16:50.459 --> 00:16:51.650 align:start position:0% a mining pool for Mev Revenue now the reason<00:16:50.639> that<00:16:50.880> that's<00:16:51.000> very<00:16:51.180> hard<00:16:51.360> to<00:16:51.480> design 00:16:51.650 --> 00:16:51.660 align:start position:0% reason that that's very hard to design 00:16:51.660 --> 00:16:53.569 align:start position:0% reason that that's very hard to design is<00:16:52.019> it's<00:16:52.259> very<00:16:52.380> hard<00:16:52.560> to<00:16:52.680> make<00:16:52.800> it<00:16:52.980> collusion 00:16:53.569 --> 00:16:53.579 align:start position:0% is it's very hard to make it collusion 00:16:53.579 --> 00:16:56.030 align:start position:0% is it's very hard to make it collusion proof<00:16:53.880> where<00:16:54.120> people<00:16:54.360> pay<00:16:54.660> one<00:16:55.019> minor<00:16:55.440> ahead 00:16:56.030 --> 00:16:56.040 align:start position:0% proof where people pay one minor ahead 00:16:56.040 --> 00:16:58.730 align:start position:0% proof where people pay one minor ahead of<00:16:56.160> time<00:16:56.279> who<00:16:56.519> in<00:16:56.880> the<00:16:57.000> pool<00:16:57.120> and<00:16:58.079> they<00:16:58.680> don't 00:16:58.730 --> 00:16:58.740 align:start position:0% of time who in the pool and they don't 00:16:58.740 --> 00:17:00.769 align:start position:0% of time who in the pool and they don't share<00:16:58.980> Revenue<00:16:59.220> with<00:16:59.399> everyone<00:16:59.579> but<00:17:00.540> suppose 00:17:00.769 --> 00:17:00.779 align:start position:0% share Revenue with everyone but suppose 00:17:00.779 --> 00:17:02.030 align:start position:0% share Revenue with everyone but suppose you<00:17:00.959> have<00:17:01.139> a<00:17:01.259> way<00:17:01.380> of<00:17:01.500> doing<00:17:01.560> that<00:17:01.680> and<00:17:01.860> there's 00:17:02.030 --> 00:17:02.040 align:start position:0% you have a way of doing that and there's 00:17:02.040 --> 00:17:03.590 align:start position:0% you have a way of doing that and there's a<00:17:02.220> lot<00:17:02.279> of<00:17:02.399> people<00:17:02.579> working<00:17:02.880> on<00:17:03.180> really<00:17:03.480> really 00:17:03.590 --> 00:17:03.600 align:start position:0% a lot of people working on really really 00:17:03.600 --> 00:17:05.090 align:start position:0% a lot of people working on really really interesting<00:17:04.020> stuff<00:17:04.260> both<00:17:04.740> on<00:17:05.040> the 00:17:05.090 --> 00:17:05.100 align:start position:0% interesting stuff both on the 00:17:05.100 --> 00:17:07.610 align:start position:0% interesting stuff both on the cryptography<00:17:05.760> side<00:17:05.939> as<00:17:06.600> well<00:17:06.780> as<00:17:06.900> on<00:17:07.199> the<00:17:07.380> sort 00:17:07.610 --> 00:17:07.620 align:start position:0% cryptography side as well as on the sort 00:17:07.620 --> 00:17:09.110 align:start position:0% cryptography side as well as on the sort of<00:17:07.740> distributed<00:17:08.220> system<00:17:08.339> side<00:17:08.579> for<00:17:08.880> for 00:17:09.110 --> 00:17:09.120 align:start position:0% of distributed system side for for 00:17:09.120 --> 00:17:11.990 align:start position:0% of distributed system side for for trying<00:17:09.780> to<00:17:10.079> to<00:17:10.380> to<00:17:10.500> do<00:17:11.160> such<00:17:11.280> a<00:17:11.459> thing<00:17:11.579> but 00:17:11.990 --> 00:17:12.000 align:start position:0% trying to to to do such a thing but 00:17:12.000 --> 00:17:14.329 align:start position:0% trying to to to do such a thing but suppose<00:17:12.360> you<00:17:12.540> have<00:17:12.720> such<00:17:12.900> a<00:17:13.079> mechanism<00:17:13.439> then 00:17:14.329 --> 00:17:14.339 align:start position:0% suppose you have such a mechanism then 00:17:14.339 --> 00:17:16.549 align:start position:0% suppose you have such a mechanism then you<00:17:14.520> can<00:17:14.640> redistribute<00:17:15.299> Mev 00:17:16.549 --> 00:17:16.559 align:start position:0% you can redistribute Mev 00:17:16.559 --> 00:17:19.429 align:start position:0% you can redistribute Mev to<00:17:17.040> all<00:17:17.220> the<00:17:17.339> validators<00:17:17.819> in<00:17:18.059> the<00:17:18.179> system<00:17:18.439> and 00:17:19.429 --> 00:17:19.439 align:start position:0% to all the validators in the system and 00:17:19.439 --> 00:17:21.409 align:start position:0% to all the validators in the system and one<00:17:19.919> very<00:17:20.100> interesting<00:17:20.520> thing<00:17:20.699> is<00:17:20.939> you<00:17:21.240> can 00:17:21.409 --> 00:17:21.419 align:start position:0% one very interesting thing is you can 00:17:21.419 --> 00:17:23.990 align:start position:0% one very interesting thing is you can show<00:17:22.199> in<00:17:22.500> some<00:17:22.740> some<00:17:22.980> sort<00:17:23.280> of<00:17:23.400> different 00:17:23.990 --> 00:17:24.000 align:start position:0% show in some some sort of different 00:17:24.000 --> 00:17:26.449 align:start position:0% show in some some sort of different types<00:17:24.360> of<00:17:24.419> for<00:17:24.600> different<00:17:24.839> types<00:17:25.020> of<00:17:25.079> Mev<00:17:25.919> you 00:17:26.449 --> 00:17:26.459 align:start position:0% types of for different types of Mev you 00:17:26.459 --> 00:17:28.250 align:start position:0% types of for different types of Mev you actually<00:17:26.579> can<00:17:26.939> lower<00:17:27.179> the<00:17:27.540> overall<00:17:27.839> inflation 00:17:28.250 --> 00:17:28.260 align:start position:0% actually can lower the overall inflation 00:17:28.260 --> 00:17:30.710 align:start position:0% actually can lower the overall inflation rate<00:17:28.559> of<00:17:28.740> the<00:17:28.919> network<00:17:29.100> if<00:17:29.640> the<00:17:29.760> Mev<00:17:30.179> subsidy 00:17:30.710 --> 00:17:30.720 align:start position:0% rate of the network if the Mev subsidy 00:17:30.720 --> 00:17:33.470 align:start position:0% rate of the network if the Mev subsidy is<00:17:30.840> large<00:17:31.080> enough<00:17:31.260> so<00:17:32.040> the<00:17:32.580> x-axis<00:17:33.179> on<00:17:33.360> this 00:17:33.470 --> 00:17:33.480 align:start position:0% is large enough so the x-axis on this 00:17:33.480 --> 00:17:35.390 align:start position:0% is large enough so the x-axis on this plot<00:17:33.660> is<00:17:33.840> the<00:17:34.080> percentage<00:17:34.500> of<00:17:34.620> Mev<00:17:35.100> Revenue 00:17:35.390 --> 00:17:35.400 align:start position:0% plot is the percentage of Mev Revenue 00:17:35.400 --> 00:17:38.150 align:start position:0% plot is the percentage of Mev Revenue shared<00:17:35.940> and<00:17:36.660> the<00:17:36.840> y-axis<00:17:37.440> sort<00:17:37.679> of<00:17:37.799> is<00:17:38.039> a 00:17:38.150 --> 00:17:38.160 align:start position:0% shared and the y-axis sort of is a 00:17:38.160 --> 00:17:40.789 align:start position:0% shared and the y-axis sort of is a measure<00:17:38.460> of<00:17:38.580> how<00:17:39.059> much<00:17:39.240> people<00:17:39.600> are<00:17:40.140> adjusting 00:17:40.789 --> 00:17:40.799 align:start position:0% measure of how much people are adjusting 00:17:40.799 --> 00:17:43.150 align:start position:0% measure of how much people are adjusting their<00:17:41.039> stake<00:17:41.400> so<00:17:41.880> let's<00:17:42.179> say<00:17:42.299> there's<00:17:42.600> sort<00:17:42.900> of 00:17:43.150 --> 00:17:43.160 align:start position:0% their stake so let's say there's sort of 00:17:43.160 --> 00:17:47.090 align:start position:0% their stake so let's say there's sort of opportunities<00:17:44.160> outside<00:17:44.580> of<00:17:45.059> uh<00:17:45.780> staking<00:17:46.200> that 00:17:47.090 --> 00:17:47.100 align:start position:0% opportunities outside of uh staking that 00:17:47.100 --> 00:17:48.590 align:start position:0% opportunities outside of uh staking that people<00:17:47.280> can<00:17:47.520> earn<00:17:47.820> yield<00:17:48.000> on<00:17:48.179> their<00:17:48.299> assets 00:17:48.590 --> 00:17:48.600 align:start position:0% people can earn yield on their assets 00:17:48.600 --> 00:17:51.110 align:start position:0% people can earn yield on their assets with<00:17:49.320> uh<00:17:49.980> one<00:17:50.220> question<00:17:50.400> you<00:17:50.640> might<00:17:50.760> ask<00:17:50.940> is 00:17:51.110 --> 00:17:51.120 align:start position:0% with uh one question you might ask is 00:17:51.120 --> 00:17:52.789 align:start position:0% with uh one question you might ask is like<00:17:51.419> what<00:17:51.780> what<00:17:52.020> are<00:17:52.200> the<00:17:52.260> incentives<00:17:52.620> that 00:17:52.789 --> 00:17:52.799 align:start position:0% like what what are the incentives that 00:17:52.799 --> 00:17:54.350 align:start position:0% like what what are the incentives that keep<00:17:52.980> people<00:17:53.100> staking<00:17:53.520> and<00:17:53.820> the<00:17:54.059> interesting 00:17:54.350 --> 00:17:54.360 align:start position:0% keep people staking and the interesting 00:17:54.360 --> 00:17:55.970 align:start position:0% keep people staking and the interesting thing<00:17:54.539> is<00:17:54.660> that<00:17:54.840> Mev<00:17:55.260> actually<00:17:55.500> adds<00:17:55.860> this 00:17:55.970 --> 00:17:55.980 align:start position:0% thing is that Mev actually adds this 00:17:55.980 --> 00:17:58.010 align:start position:0% thing is that Mev actually adds this feedback<00:17:56.280> loop<00:17:56.640> such<00:17:57.360> that<00:17:57.539> you<00:17:57.780> can<00:17:57.840> lower 00:17:58.010 --> 00:17:58.020 align:start position:0% feedback loop such that you can lower 00:17:58.020 --> 00:17:59.810 align:start position:0% feedback loop such that you can lower your<00:17:58.320> inflation<00:17:58.620> but<00:17:58.980> also<00:17:59.340> ensure<00:17:59.700> that 00:17:59.810 --> 00:17:59.820 align:start position:0% your inflation but also ensure that 00:17:59.820 --> 00:18:02.210 align:start position:0% your inflation but also ensure that people<00:18:00.059> stay<00:18:00.360> staked<00:18:00.900> and<00:18:01.559> so<00:18:01.740> you<00:18:01.980> know<00:18:02.039> the 00:18:02.210 --> 00:18:02.220 align:start position:0% people stay staked and so you know the 00:18:02.220 --> 00:18:04.070 align:start position:0% people stay staked and so you know the y-axis<00:18:02.760> is<00:18:02.880> sort<00:18:03.120> of<00:18:03.179> a<00:18:03.240> notion<00:18:03.539> of<00:18:03.660> percentage 00:18:04.070 --> 00:18:04.080 align:start position:0% y-axis is sort of a notion of percentage 00:18:04.080 --> 00:18:06.409 align:start position:0% y-axis is sort of a notion of percentage of<00:18:04.200> how<00:18:04.440> much<00:18:04.559> is<00:18:04.799> of<00:18:05.220> the<00:18:05.580> network<00:18:05.700> is<00:18:06.000> staked 00:18:06.409 --> 00:18:06.419 align:start position:0% of how much is of the network is staked 00:18:06.419 --> 00:18:09.470 align:start position:0% of how much is of the network is staked and<00:18:07.080> you<00:18:07.140> can<00:18:07.260> see<00:18:07.440> that<00:18:07.620> at<00:18:07.860> around<00:18:08.160> 25<00:18:08.580> to<00:18:09.059> 50 00:18:09.470 --> 00:18:09.480 align:start position:0% and you can see that at around 25 to 50 00:18:09.480 --> 00:18:11.750 align:start position:0% and you can see that at around 25 to 50 in<00:18:10.140> this<00:18:10.320> stylus<00:18:10.919> model 00:18:11.750 --> 00:18:11.760 align:start position:0% in this stylus model 00:18:11.760 --> 00:18:14.810 align:start position:0% in this stylus model of<00:18:12.120> Revenue<00:18:12.960> sharing<00:18:13.440> you<00:18:14.220> actually<00:18:14.400> get 00:18:14.810 --> 00:18:14.820 align:start position:0% of Revenue sharing you actually get 00:18:14.820 --> 00:18:17.390 align:start position:0% of Revenue sharing you actually get people<00:18:15.299> to<00:18:15.600> continue<00:18:15.720> staking<00:18:16.320> which<00:18:16.860> is<00:18:17.039> just 00:18:17.390 --> 00:18:17.400 align:start position:0% people to continue staking which is just 00:18:17.400 --> 00:18:19.789 align:start position:0% people to continue staking which is just you<00:18:17.640> know<00:18:17.780> it's<00:18:18.780> just<00:18:19.080> kind<00:18:19.320> of<00:18:19.440> surprising 00:18:19.789 --> 00:18:19.799 align:start position:0% you know it's just kind of surprising 00:18:19.799 --> 00:18:21.169 align:start position:0% you know it's just kind of surprising right<00:18:19.980> like<00:18:20.220> everyone's<00:18:20.760> always<00:18:20.880> like<00:18:21.120> oh 00:18:21.169 --> 00:18:21.179 align:start position:0% right like everyone's always like oh 00:18:21.179 --> 00:18:22.190 align:start position:0% right like everyone's always like oh we've<00:18:21.419> always<00:18:21.539> needed<00:18:21.900> kind<00:18:22.080> of 00:18:22.190 --> 00:18:22.200 align:start position:0% we've always needed kind of 00:18:22.200 --> 00:18:24.409 align:start position:0% we've always needed kind of hyperinflationary<00:18:23.039> economics<00:18:24.000> and<00:18:24.240> there's 00:18:24.409 --> 00:18:24.419 align:start position:0% hyperinflationary economics and there's 00:18:24.419 --> 00:18:27.230 align:start position:0% hyperinflationary economics and there's lots<00:18:24.720> of<00:18:24.780> reasons<00:18:25.080> for<00:18:25.200> that<00:18:25.380> but<00:18:26.160> but<00:18:26.400> but<00:18:26.400> Mev 00:18:27.230 --> 00:18:27.240 align:start position:0% lots of reasons for that but but but Mev 00:18:27.240 --> 00:18:29.450 align:start position:0% lots of reasons for that but but but Mev distribution<00:18:28.020> also<00:18:28.500> allows<00:18:28.860> you<00:18:28.919> to<00:18:29.100> avoid 00:18:29.450 --> 00:18:29.460 align:start position:0% distribution also allows you to avoid 00:18:29.460 --> 00:18:31.610 align:start position:0% distribution also allows you to avoid having<00:18:29.820> to<00:18:30.059> do<00:18:30.179> that<00:18:30.299> so<00:18:30.539> that's<00:18:31.200> sort<00:18:31.380> of<00:18:31.440> like 00:18:31.610 --> 00:18:31.620 align:start position:0% having to do that so that's sort of like 00:18:31.620 --> 00:18:33.890 align:start position:0% having to do that so that's sort of like a<00:18:31.980> kind<00:18:32.460> of<00:18:32.520> amazing<00:18:32.880> blessing<00:18:33.299> in<00:18:33.480> disguise 00:18:33.890 --> 00:18:33.900 align:start position:0% a kind of amazing blessing in disguise 00:18:33.900 --> 00:18:35.870 align:start position:0% a kind of amazing blessing in disguise and<00:18:34.559> there's<00:18:34.679> a<00:18:34.799> lot<00:18:34.919> more<00:18:35.100> research<00:18:35.520> that<00:18:35.760> can 00:18:35.870 --> 00:18:35.880 align:start position:0% and there's a lot more research that can 00:18:35.880 --> 00:18:37.909 align:start position:0% and there's a lot more research that can be<00:18:36.000> done<00:18:36.120> in<00:18:36.360> this<00:18:36.539> space<00:18:36.960> that<00:18:37.260> I<00:18:37.500> think<00:18:37.559> we<00:18:37.679> we 00:18:37.909 --> 00:18:37.919 align:start position:0% be done in this space that I think we we 00:18:37.919 --> 00:18:40.010 align:start position:0% be done in this space that I think we we mainly<00:18:38.220> looked<00:18:38.520> at<00:18:38.580> how<00:18:39.059> liquidations<00:18:39.539> impact 00:18:40.010 --> 00:18:40.020 align:start position:0% mainly looked at how liquidations impact 00:18:40.020 --> 00:18:44.630 align:start position:0% mainly looked at how liquidations impact uh<00:18:41.480> Staker<00:18:42.480> incentives<00:18:43.400> uh<00:18:44.400> another 00:18:44.630 --> 00:18:44.640 align:start position:0% uh Staker incentives uh another 00:18:44.640 --> 00:18:45.950 align:start position:0% uh Staker incentives uh another interesting<00:18:45.120> thing<00:18:45.299> and<00:18:45.480> I<00:18:45.600> think<00:18:45.720> this<00:18:45.900> is 00:18:45.950 --> 00:18:45.960 align:start position:0% interesting thing and I think this is 00:18:45.960 --> 00:18:47.630 align:start position:0% interesting thing and I think this is the<00:18:46.140> type<00:18:46.320> of<00:18:46.440> thing<00:18:46.620> that<00:18:46.919> we're<00:18:47.280> seeing<00:18:47.460> in 00:18:47.630 --> 00:18:47.640 align:start position:0% the type of thing that we're seeing in 00:18:47.640 --> 00:18:49.430 align:start position:0% the type of thing that we're seeing in multiple<00:18:48.299> ecosystems<00:18:49.020> whether<00:18:49.260> it's 00:18:49.430 --> 00:18:49.440 align:start position:0% multiple ecosystems whether it's 00:18:49.440 --> 00:18:52.549 align:start position:0% multiple ecosystems whether it's ethereum<00:18:50.419> especially<00:18:51.419> with<00:18:51.720> roll-up 00:18:52.549 --> 00:18:52.559 align:start position:0% ethereum especially with roll-up 00:18:52.559 --> 00:18:56.090 align:start position:0% ethereum especially with roll-up auctions<00:18:53.160> whether<00:18:53.820> it's<00:18:54.059> in<00:18:54.299> Cosmos 00:18:56.090 --> 00:18:56.100 align:start position:0% auctions whether it's in Cosmos 00:18:56.100 --> 00:18:58.669 align:start position:0% auctions whether it's in Cosmos um<00:18:56.160> but<00:18:56.820> everyone<00:18:57.480> sort<00:18:57.900> of<00:18:57.960> is<00:18:58.320> starting<00:18:58.500> to 00:18:58.669 --> 00:18:58.679 align:start position:0% um but everyone sort of is starting to 00:18:58.679 --> 00:19:01.070 align:start position:0% um but everyone sort of is starting to realize<00:18:58.919> the<00:18:59.100> Mev<00:18:59.520> auction<00:18:59.820> of<00:19:00.360> having<00:19:00.780> a 00:19:01.070 --> 00:19:01.080 align:start position:0% realize the Mev auction of having a 00:19:01.080 --> 00:19:03.890 align:start position:0% realize the Mev auction of having a single<00:19:01.320> Mev<00:19:01.740> auction<00:19:01.980> for<00:19:02.400> everyone<00:19:03.240> to<00:19:03.780> kind 00:19:03.890 --> 00:19:03.900 align:start position:0% single Mev auction for everyone to kind 00:19:03.900 --> 00:19:07.130 align:start position:0% single Mev auction for everyone to kind of<00:19:04.020> compete<00:19:04.500> in<00:19:04.580> may<00:19:05.580> not<00:19:05.760> be<00:19:05.940> the<00:19:06.179> best<00:19:06.419> form 00:19:07.130 --> 00:19:07.140 align:start position:0% of compete in may not be the best form 00:19:07.140 --> 00:19:08.870 align:start position:0% of compete in may not be the best form of<00:19:07.380> an<00:19:07.500> auction<00:19:07.679> you<00:19:07.980> may<00:19:08.160> want<00:19:08.400> to<00:19:08.520> have<00:19:08.640> an 00:19:08.870 --> 00:19:08.880 align:start position:0% of an auction you may want to have an 00:19:08.880 --> 00:19:10.549 align:start position:0% of an auction you may want to have an auction<00:19:09.059> per<00:19:09.419> roll<00:19:09.660> up<00:19:09.900> you<00:19:10.140> may<00:19:10.260> want<00:19:10.380> to<00:19:10.500> have 00:19:10.549 --> 00:19:10.559 align:start position:0% auction per roll up you may want to have 00:19:10.559 --> 00:19:13.250 align:start position:0% auction per roll up you may want to have an<00:19:10.679> auction<00:19:10.860> per<00:19:11.160> application<00:19:11.700> and<00:19:12.299> so<00:19:13.080> that 00:19:13.250 --> 00:19:13.260 align:start position:0% an auction per application and so that 00:19:13.260 --> 00:19:14.990 align:start position:0% an auction per application and so that you<00:19:13.500> can<00:19:13.559> tune<00:19:13.799> the<00:19:14.039> aux<00:19:14.280> you<00:19:14.520> can<00:19:14.580> tune<00:19:14.760> the 00:19:14.990 --> 00:19:15.000 align:start position:0% you can tune the aux you can tune the 00:19:15.000 --> 00:19:16.730 align:start position:0% you can tune the aux you can tune the social<00:19:15.240> welfare<00:19:15.720> versus<00:19:15.960> Revenue<00:19:16.260> trade-off 00:19:16.730 --> 00:19:16.740 align:start position:0% social welfare versus Revenue trade-off 00:19:16.740 --> 00:19:19.370 align:start position:0% social welfare versus Revenue trade-off right<00:19:17.520> now<00:19:17.640> if<00:19:17.940> you<00:19:18.059> think<00:19:18.179> about<00:19:18.299> it<00:19:18.600> everyone 00:19:19.370 --> 00:19:19.380 align:start position:0% right now if you think about it everyone 00:19:19.380 --> 00:19:21.529 align:start position:0% right now if you think about it everyone who's<00:19:19.919> making<00:19:20.340> a<00:19:20.580> flashbulance<00:19:21.059> bundle<00:19:21.360> for 00:19:21.529 --> 00:19:21.539 align:start position:0% who's making a flashbulance bundle for 00:19:21.539 --> 00:19:23.570 align:start position:0% who's making a flashbulance bundle for an<00:19:21.720> nft<00:19:22.140> mint<00:19:22.559> is<00:19:22.740> competing<00:19:23.160> with<00:19:23.340> everyone 00:19:23.570 --> 00:19:23.580 align:start position:0% an nft mint is competing with everyone 00:19:23.580 --> 00:19:26.150 align:start position:0% an nft mint is competing with everyone who's<00:19:23.880> sandwiching<00:19:24.480> for<00:19:25.260> the<00:19:25.500> same<00:19:25.740> sort<00:19:26.039> of 00:19:26.150 --> 00:19:26.160 align:start position:0% who's sandwiching for the same sort of 00:19:26.160 --> 00:19:28.730 align:start position:0% who's sandwiching for the same sort of block<00:19:26.820> space<00:19:27.120> but<00:19:27.419> they<00:19:27.539> may<00:19:27.720> actually<00:19:27.960> if<00:19:28.620> you 00:19:28.730 --> 00:19:28.740 align:start position:0% block space but they may actually if you 00:19:28.740 --> 00:19:30.350 align:start position:0% block space but they may actually if you segment<00:19:29.100> to<00:19:29.220> the<00:19:29.400> block<00:19:29.520> space<00:19:29.760> and<00:19:30.000> say<00:19:30.120> only 00:19:30.350 --> 00:19:30.360 align:start position:0% segment to the block space and say only 00:19:30.360 --> 00:19:32.150 align:start position:0% segment to the block space and say only this<00:19:30.660> amount<00:19:30.960> goes<00:19:31.380> for<00:19:31.500> sandwiching<00:19:31.919> in<00:19:32.039> this 00:19:32.150 --> 00:19:32.160 align:start position:0% this amount goes for sandwiching in this 00:19:32.160 --> 00:19:34.070 align:start position:0% this amount goes for sandwiching in this amount<00:19:32.340> goes<00:19:32.640> for<00:19:32.760> nfts<00:19:33.360> you<00:19:33.660> might<00:19:33.780> have<00:19:33.960> a 00:19:34.070 --> 00:19:34.080 align:start position:0% amount goes for nfts you might have a 00:19:34.080 --> 00:19:36.350 align:start position:0% amount goes for nfts you might have a very<00:19:34.260> different<00:19:34.380> equilibria<00:19:35.160> uh<00:19:36.000> and<00:19:36.120> I<00:19:36.240> think 00:19:36.350 --> 00:19:36.360 align:start position:0% very different equilibria uh and I think 00:19:36.360 --> 00:19:38.570 align:start position:0% very different equilibria uh and I think you<00:19:36.720> know<00:19:36.780> a<00:19:37.260> lot<00:19:37.380> of<00:19:37.440> the<00:19:37.500> roll-up<00:19:37.860> developers 00:19:38.570 --> 00:19:38.580 align:start position:0% you know a lot of the roll-up developers 00:19:38.580 --> 00:19:40.850 align:start position:0% you know a lot of the roll-up developers are<00:19:38.820> are<00:19:39.059> basically<00:19:39.660> kind<00:19:40.080> of<00:19:40.200> talking<00:19:40.620> with 00:19:40.850 --> 00:19:40.860 align:start position:0% are are basically kind of talking with 00:19:40.860 --> 00:19:43.549 align:start position:0% are are basically kind of talking with us<00:19:41.039> but<00:19:41.820> an<00:19:42.360> interesting<00:19:42.660> thing<00:19:42.840> is<00:19:43.080> and<00:19:43.320> some 00:19:43.549 --> 00:19:43.559 align:start position:0% us but an interesting thing is and some 00:19:43.559 --> 00:19:45.470 align:start position:0% us but an interesting thing is and some some<00:19:43.799> current<00:19:44.100> work<00:19:44.400> is<00:19:44.700> you<00:19:45.299> can<00:19:45.360> actually 00:19:45.470 --> 00:19:45.480 align:start position:0% some current work is you can actually 00:19:45.480 --> 00:19:48.650 align:start position:0% some current work is you can actually show<00:19:45.720> that<00:19:45.960> disaggregating<00:19:47.059> uh<00:19:48.059> a<00:19:48.240> single 00:19:48.650 --> 00:19:48.660 align:start position:0% show that disaggregating uh a single 00:19:48.660 --> 00:19:50.510 align:start position:0% show that disaggregating uh a single auction<00:19:48.840> into<00:19:49.080> many<00:19:49.320> auctions<00:19:49.799> can<00:19:50.280> actually 00:19:50.510 --> 00:19:50.520 align:start position:0% auction into many auctions can actually 00:19:50.520 --> 00:19:52.850 align:start position:0% auction into many auctions can actually have<00:19:50.940> better<00:19:51.299> social<00:19:51.600> welfare<00:19:52.140> for<00:19:52.620> the<00:19:52.740> end 00:19:52.850 --> 00:19:52.860 align:start position:0% have better social welfare for the end 00:19:52.860 --> 00:19:54.770 align:start position:0% have better social welfare for the end user<00:19:53.220> and<00:19:53.520> that's<00:19:54.000> sort<00:19:54.240> of<00:19:54.299> like<00:19:54.480> an 00:19:54.770 --> 00:19:54.780 align:start position:0% user and that's sort of like an 00:19:54.780 --> 00:19:56.990 align:start position:0% user and that's sort of like an interesting<00:19:55.260> kind<00:19:55.500> of<00:19:55.620> trade-off<00:19:56.039> uh<00:19:56.700> that<00:19:56.820> I 00:19:56.990 --> 00:19:57.000 align:start position:0% interesting kind of trade-off uh that I 00:19:57.000 --> 00:19:59.270 align:start position:0% interesting kind of trade-off uh that I think<00:19:57.120> as<00:19:57.720> things<00:19:58.020> like<00:19:58.200> PBS<00:19:58.679> get<00:19:58.919> developed 00:19:59.270 --> 00:19:59.280 align:start position:0% think as things like PBS get developed 00:19:59.280 --> 00:20:01.490 align:start position:0% think as things like PBS get developed you<00:19:59.460> have<00:19:59.640> to<00:19:59.760> sort<00:19:59.940> of<00:20:00.419> analyze<00:20:01.140> these<00:20:01.260> types 00:20:01.490 --> 00:20:01.500 align:start position:0% you have to sort of analyze these types 00:20:01.500 --> 00:20:03.169 align:start position:0% you have to sort of analyze these types of<00:20:01.620> incentives 00:20:03.169 --> 00:20:03.179 align:start position:0% of incentives 00:20:03.179 --> 00:20:06.890 align:start position:0% of incentives um so<00:20:03.720> you<00:20:04.080> know<00:20:04.200> I<00:20:04.860> uh<00:20:05.220> I<00:20:05.520> think<00:20:05.660> I<00:20:06.660> want<00:20:06.780> to 00:20:06.890 --> 00:20:06.900 align:start position:0% um so you know I uh I think I want to 00:20:06.900 --> 00:20:08.570 align:start position:0% um so you know I uh I think I want to just<00:20:06.960> at<00:20:07.140> least<00:20:07.260> impress<00:20:07.500> upon<00:20:07.799> people<00:20:07.980> that 00:20:08.570 --> 00:20:08.580 align:start position:0% just at least impress upon people that 00:20:08.580 --> 00:20:10.789 align:start position:0% just at least impress upon people that theoretical<00:20:09.120> foundations<00:20:09.539> for<00:20:09.780> Mev<00:20:10.260> are 00:20:10.789 --> 00:20:10.799 align:start position:0% theoretical foundations for Mev are 00:20:10.799 --> 00:20:12.409 align:start position:0% theoretical foundations for Mev are really<00:20:10.919> important<00:20:11.280> and<00:20:11.520> I<00:20:11.580> think<00:20:11.700> we've<00:20:12.120> sort 00:20:12.409 --> 00:20:12.419 align:start position:0% really important and I think we've sort 00:20:12.419 --> 00:20:14.990 align:start position:0% really important and I think we've sort of<00:20:12.960> started<00:20:13.620> with<00:20:14.100> this<00:20:14.340> thing<00:20:14.460> as<00:20:14.640> this<00:20:14.820> like 00:20:14.990 --> 00:20:15.000 align:start position:0% of started with this thing as this like 00:20:15.000 --> 00:20:17.750 align:start position:0% of started with this thing as this like emergent<00:20:15.539> unstudied<00:20:16.200> phenomena<00:20:16.740> we<00:20:17.460> sort<00:20:17.700> of 00:20:17.750 --> 00:20:17.760 align:start position:0% emergent unstudied phenomena we sort of 00:20:17.760 --> 00:20:20.029 align:start position:0% emergent unstudied phenomena we sort of backed<00:20:18.179> our<00:20:18.299> way<00:20:18.480> into<00:20:18.720> some<00:20:19.020> mechanisms<00:20:19.620> for 00:20:20.029 --> 00:20:20.039 align:start position:0% backed our way into some mechanisms for 00:20:20.039 --> 00:20:23.930 align:start position:0% backed our way into some mechanisms for like<00:20:20.340> you<00:20:21.120> know<00:20:21.320> doing<00:20:22.320> an<00:20:22.559> auction<00:20:22.980> coming<00:20:23.760> up 00:20:23.930 --> 00:20:23.940 align:start position:0% like you know doing an auction coming up 00:20:23.940 --> 00:20:26.150 align:start position:0% like you know doing an auction coming up with<00:20:24.179> sort<00:20:24.419> of<00:20:24.539> rough<00:20:24.840> reputation<00:20:25.799> scores 00:20:26.150 --> 00:20:26.160 align:start position:0% with sort of rough reputation scores 00:20:26.160 --> 00:20:28.370 align:start position:0% with sort of rough reputation scores which<00:20:27.120> you<00:20:27.600> know<00:20:27.660> it's<00:20:27.720> not<00:20:27.900> totally<00:20:28.200> clear 00:20:28.370 --> 00:20:28.380 align:start position:0% which you know it's not totally clear 00:20:28.380 --> 00:20:30.169 align:start position:0% which you know it's not totally clear exactly<00:20:28.799> how<00:20:29.100> that<00:20:29.340> whole<00:20:29.520> system<00:20:29.760> can<00:20:30.059> be 00:20:30.169 --> 00:20:30.179 align:start position:0% exactly how that whole system can be 00:20:30.179 --> 00:20:31.190 align:start position:0% exactly how that whole system can be analyzed 00:20:31.190 --> 00:20:31.200 align:start position:0% analyzed 00:20:31.200 --> 00:20:33.230 align:start position:0% analyzed uh<00:20:31.860> to<00:20:32.100> a<00:20:32.280> point<00:20:32.400> where<00:20:32.640> we<00:20:32.820> actually<00:20:32.940> are 00:20:33.230 --> 00:20:33.240 align:start position:0% uh to a point where we actually are 00:20:33.240 --> 00:20:34.789 align:start position:0% uh to a point where we actually are really<00:20:33.600> able<00:20:33.840> to<00:20:33.960> start<00:20:34.080> thinking<00:20:34.440> about<00:20:34.500> okay 00:20:34.789 --> 00:20:34.799 align:start position:0% really able to start thinking about okay 00:20:34.799 --> 00:20:36.470 align:start position:0% really able to start thinking about okay how<00:20:35.100> do<00:20:35.220> we<00:20:35.340> optimize 00:20:36.470 --> 00:20:36.480 align:start position:0% how do we optimize 00:20:36.480 --> 00:20:38.930 align:start position:0% how do we optimize for<00:20:37.200> things<00:20:37.740> like<00:20:37.919> redistribution<00:20:38.460> how<00:20:38.760> do<00:20:38.880> we 00:20:38.930 --> 00:20:38.940 align:start position:0% for things like redistribution how do we 00:20:38.940 --> 00:20:40.430 align:start position:0% for things like redistribution how do we optimize<00:20:39.299> for<00:20:39.480> social<00:20:39.720> welfare<00:20:40.080> how<00:20:40.320> do<00:20:40.440> we 00:20:40.430 --> 00:20:40.440 align:start position:0% optimize for social welfare how do we 00:20:40.440 --> 00:20:42.529 align:start position:0% optimize for social welfare how do we optimize<00:20:40.799> for<00:20:40.980> validator<00:20:41.340> Revenue<00:20:41.700> in<00:20:42.240> a<00:20:42.419> sort 00:20:42.529 --> 00:20:42.539 align:start position:0% optimize for validator Revenue in a sort 00:20:42.539 --> 00:20:44.029 align:start position:0% optimize for validator Revenue in a sort of<00:20:42.660> joint<00:20:43.020> manner 00:20:44.029 --> 00:20:44.039 align:start position:0% of joint manner 00:20:44.039 --> 00:20:46.370 align:start position:0% of joint manner and<00:20:44.700> formalism 00:20:46.370 --> 00:20:46.380 align:start position:0% and formalism 00:20:46.380 --> 00:20:49.730 align:start position:0% and formalism uh<00:20:46.860> I<00:20:47.039> think<00:20:47.220> it<00:20:48.000> provides<00:20:48.780> us<00:20:48.900> this<00:20:49.200> way<00:20:49.440> of 00:20:49.730 --> 00:20:49.740 align:start position:0% uh I think it provides us this way of 00:20:49.740 --> 00:20:53.270 align:start position:0% uh I think it provides us this way of finding<00:20:50.400> these<00:20:50.760> truths<00:20:51.240> about<00:20:51.900> Mev<00:20:52.559> where 00:20:53.270 --> 00:20:53.280 align:start position:0% finding these truths about Mev where 00:20:53.280 --> 00:20:54.830 align:start position:0% finding these truths about Mev where which<00:20:53.520> show<00:20:53.760> that<00:20:53.940> hey<00:20:54.179> it's<00:20:54.419> not<00:20:54.600> always 00:20:54.830 --> 00:20:54.840 align:start position:0% which show that hey it's not always 00:20:54.840 --> 00:20:57.830 align:start position:0% which show that hey it's not always robbing<00:20:55.559> grannies<00:20:55.919> in<00:20:56.160> metamask<00:20:56.640> and<00:20:57.600> the 00:20:57.830 --> 00:20:57.840 align:start position:0% robbing grannies in metamask and the 00:20:57.840 --> 00:20:59.510 align:start position:0% robbing grannies in metamask and the interesting<00:20:58.140> thing<00:20:58.260> is<00:20:58.380> I<00:20:58.559> think<00:20:58.740> people<00:20:59.220> you 00:20:59.510 --> 00:20:59.520 align:start position:0% interesting thing is I think people you 00:20:59.520 --> 00:21:00.890 align:start position:0% interesting thing is I think people you know<00:20:59.640> this<00:20:59.880> is<00:21:00.000> sort<00:21:00.120> of<00:21:00.240> the<00:21:00.299> beginning<00:21:00.480> of 00:21:00.890 --> 00:21:00.900 align:start position:0% know this is sort of the beginning of 00:21:00.900 --> 00:21:02.810 align:start position:0% know this is sort of the beginning of this<00:21:01.200> kind<00:21:01.440> of<00:21:01.559> new<00:21:01.799> branch<00:21:02.160> in<00:21:02.340> my<00:21:02.520> mind<00:21:02.640> of 00:21:02.810 --> 00:21:02.820 align:start position:0% this kind of new branch in my mind of 00:21:02.820 --> 00:21:04.370 align:start position:0% this kind of new branch in my mind of algorithmic<00:21:03.240> Game<00:21:03.419> Theory<00:21:03.720> where<00:21:04.200> you're 00:21:04.370 --> 00:21:04.380 align:start position:0% algorithmic Game Theory where you're 00:21:04.380 --> 00:21:06.350 align:start position:0% algorithmic Game Theory where you're really<00:21:04.620> focused<00:21:05.039> on<00:21:05.220> the<00:21:05.520> joint<00:21:05.820> optimization 00:21:06.350 --> 00:21:06.360 align:start position:0% really focused on the joint optimization 00:21:06.360 --> 00:21:07.789 align:start position:0% really focused on the joint optimization of<00:21:06.600> social<00:21:06.780> welfare<00:21:07.200> and<00:21:07.320> revenue<00:21:07.559> because 00:21:07.789 --> 00:21:07.799 align:start position:0% of social welfare and revenue because 00:21:07.799 --> 00:21:09.830 align:start position:0% of social welfare and revenue because both<00:21:08.400> of<00:21:08.580> them<00:21:08.700> are<00:21:08.940> extremely<00:21:09.299> important<00:21:09.660> to 00:21:09.830 --> 00:21:09.840 align:start position:0% both of them are extremely important to 00:21:09.840 --> 00:21:12.529 align:start position:0% both of them are extremely important to network<00:21:10.020> survival<00:21:10.559> in<00:21:10.860> cryptocurrencies 00:21:12.529 --> 00:21:12.539 align:start position:0% network survival in cryptocurrencies 00:21:12.539 --> 00:21:14.870 align:start position:0% network survival in cryptocurrencies and<00:21:13.140> so<00:21:13.320> I<00:21:13.559> I<00:21:13.679> want<00:21:14.039> to<00:21:14.160> leave<00:21:14.280> you<00:21:14.400> with<00:21:14.580> some 00:21:14.870 --> 00:21:14.880 align:start position:0% and so I I want to leave you with some 00:21:14.880 --> 00:21:16.730 align:start position:0% and so I I want to leave you with some open<00:21:15.000> problems<00:21:15.480> in<00:21:15.600> case<00:21:15.780> anyone<00:21:16.200> kind<00:21:16.500> of<00:21:16.620> is 00:21:16.730 --> 00:21:16.740 align:start position:0% open problems in case anyone kind of is 00:21:16.740 --> 00:21:20.029 align:start position:0% open problems in case anyone kind of is is<00:21:17.539> interested<00:21:18.539> in<00:21:18.720> this<00:21:18.900> type<00:21:19.020> of<00:21:19.140> stuff 00:21:20.029 --> 00:21:20.039 align:start position:0% is interested in this type of stuff 00:21:20.039 --> 00:21:22.430 align:start position:0% is interested in this type of stuff uh<00:21:20.820> the<00:21:21.059> first<00:21:21.120> thing<00:21:21.299> is<00:21:21.480> what's<00:21:21.840> a<00:21:22.020> notion<00:21:22.320> of 00:21:22.430 --> 00:21:22.440 align:start position:0% uh the first thing is what's a notion of 00:21:22.440 --> 00:21:24.049 align:start position:0% uh the first thing is what's a notion of optimality<00:21:23.039> for<00:21:23.220> an<00:21:23.340> auction<00:21:23.520> right<00:21:23.820> right 00:21:24.049 --> 00:21:24.059 align:start position:0% optimality for an auction right right 00:21:24.059 --> 00:21:25.909 align:start position:0% optimality for an auction right right now<00:21:24.240> if<00:21:24.419> you<00:21:24.539> look<00:21:24.660> at<00:21:24.720> flashbots 00:21:25.909 --> 00:21:25.919 align:start position:0% now if you look at flashbots 00:21:25.919 --> 00:21:28.370 align:start position:0% now if you look at flashbots it's<00:21:26.460> sort<00:21:26.640> of<00:21:26.820> a<00:21:27.299> first<00:21:27.480> price<00:21:27.660> auction<00:21:28.020> with 00:21:28.370 --> 00:21:28.380 align:start position:0% it's sort of a first price auction with 00:21:28.380 --> 00:21:29.990 align:start position:0% it's sort of a first price auction with some<00:21:28.500> filtering<00:21:28.980> because<00:21:29.280> they<00:21:29.700> use<00:21:29.880> a 00:21:29.990 --> 00:21:30.000 align:start position:0% some filtering because they use a 00:21:30.000 --> 00:21:31.250 align:start position:0% some filtering because they use a scoring<00:21:30.360> function<00:21:30.659> that<00:21:30.840> removes<00:21:31.140> some 00:21:31.250 --> 00:21:31.260 align:start position:0% scoring function that removes some 00:21:31.260 --> 00:21:33.049 align:start position:0% scoring function that removes some public<00:21:31.440> mempool<00:21:31.860> transactions<00:21:32.460> is<00:21:32.940> that 00:21:33.049 --> 00:21:33.059 align:start position:0% public mempool transactions is that 00:21:33.059 --> 00:21:34.610 align:start position:0% public mempool transactions is that optimal<00:21:33.419> does<00:21:33.600> that<00:21:33.780> work<00:21:33.960> when<00:21:34.260> you<00:21:34.380> have 00:21:34.610 --> 00:21:34.620 align:start position:0% optimal does that work when you have 00:21:34.620 --> 00:21:37.010 align:start position:0% optimal does that work when you have multiple<00:21:35.280> chains<00:21:35.760> or<00:21:35.940> multiple<00:21:36.360> this<00:21:36.720> sort<00:21:36.960> of 00:21:37.010 --> 00:21:37.020 align:start position:0% multiple chains or multiple this sort of 00:21:37.020 --> 00:21:39.770 align:start position:0% multiple chains or multiple this sort of hierarchical<00:21:37.559> system 00:21:39.770 --> 00:21:39.780 align:start position:0% hierarchical system 00:21:39.780 --> 00:21:42.590 align:start position:0% hierarchical system um<00:21:39.840> also<00:21:40.140> does<00:21:40.260> it<00:21:40.440> does<00:21:40.679> it<00:21:40.860> sort<00:21:41.039> of<00:21:41.580> uh<00:21:42.360> deal 00:21:42.590 --> 00:21:42.600 align:start position:0% um also does it does it sort of uh deal 00:21:42.600 --> 00:21:45.649 align:start position:0% um also does it does it sort of uh deal with<00:21:42.900> uh<00:21:43.860> some<00:21:44.100> of<00:21:44.159> the<00:21:44.280> problems<00:21:44.520> of<00:21:44.760> hey<00:21:45.240> how 00:21:45.649 --> 00:21:45.659 align:start position:0% with uh some of the problems of hey how 00:21:45.659 --> 00:21:47.570 align:start position:0% with uh some of the problems of hey how do<00:21:45.840> I<00:21:46.020> trust<00:21:46.200> the<00:21:46.380> auctioneer<00:21:46.860> right<00:21:47.159> now<00:21:47.280> we 00:21:47.570 --> 00:21:47.580 align:start position:0% do I trust the auctioneer right now we 00:21:47.580 --> 00:21:49.190 align:start position:0% do I trust the auctioneer right now we have<00:21:47.820> a<00:21:47.940> system<00:21:48.120> where<00:21:48.539> everyone<00:21:48.780> basically 00:21:49.190 --> 00:21:49.200 align:start position:0% have a system where everyone basically 00:21:49.200 --> 00:21:51.529 align:start position:0% have a system where everyone basically trusts<00:21:49.500> the<00:21:49.620> auctioneer<00:21:50.100> and 00:21:51.529 --> 00:21:51.539 align:start position:0% trusts the auctioneer and 00:21:51.539 --> 00:21:54.230 align:start position:0% trusts the auctioneer and you<00:21:52.020> know<00:21:52.140> economists<00:21:52.679> have<00:21:53.240> copied 00:21:54.230 --> 00:21:54.240 align:start position:0% you know economists have copied 00:21:54.240 --> 00:21:56.149 align:start position:0% you know economists have copied cryptocurrency<00:21:54.960> enthusiasts<00:21:55.559> and<00:21:55.799> made<00:21:56.039> some 00:21:56.149 --> 00:21:56.159 align:start position:0% cryptocurrency enthusiasts and made some 00:21:56.159 --> 00:21:58.430 align:start position:0% cryptocurrency enthusiasts and made some trilemmas<00:21:56.700> recently<00:21:57.120> on<00:21:57.840> proving<00:21:58.260> things 00:21:58.430 --> 00:21:58.440 align:start position:0% trilemmas recently on proving things 00:21:58.440 --> 00:22:02.270 align:start position:0% trilemmas recently on proving things about<00:21:58.799> when<00:21:59.400> auctions<00:22:00.120> uh<00:22:01.380> when<00:22:01.860> you<00:22:01.919> when<00:22:02.159> you 00:22:02.270 --> 00:22:02.280 align:start position:0% about when auctions uh when you when you 00:22:02.280 --> 00:22:03.770 align:start position:0% about when auctions uh when you when you when<00:22:02.460> and<00:22:02.700> when<00:22:02.880> you<00:22:03.059> can't<00:22:03.240> trust<00:22:03.600> an 00:22:03.770 --> 00:22:03.780 align:start position:0% when and when you can't trust an 00:22:03.780 --> 00:22:07.070 align:start position:0% when and when you can't trust an Auctioneer<00:22:04.220> and<00:22:05.220> a<00:22:05.520> lot<00:22:05.640> of<00:22:05.760> that<00:22:05.940> work 00:22:07.070 --> 00:22:07.080 align:start position:0% Auctioneer and a lot of that work 00:22:07.080 --> 00:22:08.750 align:start position:0% Auctioneer and a lot of that work you<00:22:07.440> know<00:22:07.500> I<00:22:07.620> think<00:22:07.740> if<00:22:08.100> the<00:22:08.220> right<00:22:08.460> people 00:22:08.750 --> 00:22:08.760 align:start position:0% you know I think if the right people 00:22:08.760 --> 00:22:11.330 align:start position:0% you know I think if the right people were<00:22:09.299> focused<00:22:09.900> on<00:22:10.020> it<00:22:10.200> could<00:22:11.159> really 00:22:11.330 --> 00:22:11.340 align:start position:0% were focused on it could really 00:22:11.340 --> 00:22:13.310 align:start position:0% were focused on it could really determine<00:22:11.820> how<00:22:12.120> PBS<00:22:12.600> functions<00:22:13.020> as<00:22:13.200> an 00:22:13.310 --> 00:22:13.320 align:start position:0% determine how PBS functions as an 00:22:13.320 --> 00:22:14.690 align:start position:0% determine how PBS functions as an auction<00:22:13.500> and<00:22:13.740> what<00:22:14.100> sort<00:22:14.340> of<00:22:14.400> like<00:22:14.520> the 00:22:14.690 --> 00:22:14.700 align:start position:0% auction and what sort of like the 00:22:14.700 --> 00:22:16.669 align:start position:0% auction and what sort of like the expected<00:22:15.120> properties<00:22:15.419> of<00:22:15.659> it<00:22:15.780> are<00:22:15.960> on<00:22:16.559> the 00:22:16.669 --> 00:22:16.679 align:start position:0% expected properties of it are on the 00:22:16.679 --> 00:22:17.930 align:start position:0% expected properties of it are on the other<00:22:16.799> hand<00:22:16.919> there's<00:22:17.220> sort<00:22:17.400> of<00:22:17.460> some<00:22:17.580> notion 00:22:17.930 --> 00:22:17.940 align:start position:0% other hand there's sort of some notion 00:22:17.940 --> 00:22:20.029 align:start position:0% other hand there's sort of some notion of<00:22:18.059> lower<00:22:18.299> bounds<00:22:18.780> like<00:22:18.960> in<00:22:19.679> an<00:22:19.860> open 00:22:20.029 --> 00:22:20.039 align:start position:0% of lower bounds like in an open 00:22:20.039 --> 00:22:23.390 align:start position:0% of lower bounds like in an open permissionless<00:22:20.700> system<00:22:21.080> with<00:22:22.080> a<00:22:22.620> some<00:22:23.039> notion 00:22:23.390 --> 00:22:23.400 align:start position:0% permissionless system with a some notion 00:22:23.400 --> 00:22:25.669 align:start position:0% permissionless system with a some notion of<00:22:23.640> value<00:22:24.000> there<00:22:24.780> sort<00:22:25.020> of<00:22:25.140> has<00:22:25.200> to<00:22:25.380> be<00:22:25.440> some 00:22:25.669 --> 00:22:25.679 align:start position:0% of value there sort of has to be some 00:22:25.679 --> 00:22:26.930 align:start position:0% of value there sort of has to be some lower<00:22:25.860> bound<00:22:26.159> to<00:22:26.400> the<00:22:26.580> amount<00:22:26.760> that's 00:22:26.930 --> 00:22:26.940 align:start position:0% lower bound to the amount that's 00:22:26.940 --> 00:22:28.789 align:start position:0% lower bound to the amount that's extracted<00:22:27.480> because<00:22:27.659> within<00:22:28.200> without<00:22:28.500> any 00:22:28.789 --> 00:22:28.799 align:start position:0% extracted because within without any 00:22:28.799 --> 00:22:30.529 align:start position:0% extracted because within without any extraction<00:22:29.280> it's<00:22:29.820> very<00:22:30.000> hard<00:22:30.240> to<00:22:30.419> imagine 00:22:30.529 --> 00:22:30.539 align:start position:0% extraction it's very hard to imagine 00:22:30.539 --> 00:22:33.230 align:start position:0% extraction it's very hard to imagine validators<00:22:31.320> being<00:22:32.039> able<00:22:32.220> to<00:22:32.460> to<00:22:32.640> continue<00:22:32.940> to 00:22:33.230 --> 00:22:33.240 align:start position:0% validators being able to to continue to 00:22:33.240 --> 00:22:35.270 align:start position:0% validators being able to to continue to sustain<00:22:33.780> the<00:22:33.960> network<00:22:34.200> and<00:22:34.799> so<00:22:34.919> one<00:22:35.100> question 00:22:35.270 --> 00:22:35.280 align:start position:0% sustain the network and so one question 00:22:35.280 --> 00:22:37.430 align:start position:0% sustain the network and so one question is<00:22:35.520> how<00:22:36.179> do<00:22:36.299> you<00:22:36.419> construct<00:22:36.720> those<00:22:37.080> lower 00:22:37.430 --> 00:22:37.440 align:start position:0% is how do you construct those lower 00:22:37.440 --> 00:22:40.010 align:start position:0% is how do you construct those lower bounds<00:22:37.919> you<00:22:38.159> know<00:22:38.220> in<00:22:38.940> information<00:22:39.419> Theory 00:22:40.010 --> 00:22:40.020 align:start position:0% bounds you know in information Theory 00:22:40.020 --> 00:22:42.470 align:start position:0% bounds you know in information Theory and<00:22:40.559> in<00:22:40.740> theoretical<00:22:41.159> computer<00:22:41.400> science<00:22:41.760> the 00:22:42.470 --> 00:22:42.480 align:start position:0% and in theoretical computer science the 00:22:42.480 --> 00:22:44.270 align:start position:0% and in theoretical computer science the lower<00:22:42.720> bounds<00:22:43.080> are<00:22:43.140> extremely<00:22:43.500> hard<00:22:43.679> upper 00:22:44.270 --> 00:22:44.280 align:start position:0% lower bounds are extremely hard upper 00:22:44.280 --> 00:22:46.430 align:start position:0% lower bounds are extremely hard upper bounds<00:22:44.580> are<00:22:44.700> always<00:22:44.820> easy<00:22:45.179> lower<00:22:45.900> bounds<00:22:46.320> are 00:22:46.430 --> 00:22:46.440 align:start position:0% bounds are always easy lower bounds are 00:22:46.440 --> 00:22:48.049 align:start position:0% bounds are always easy lower bounds are are<00:22:46.740> really<00:22:46.980> sort<00:22:47.220> of<00:22:47.340> some<00:22:47.460> of<00:22:47.580> the<00:22:47.700> hardest 00:22:48.049 --> 00:22:48.059 align:start position:0% are really sort of some of the hardest 00:22:48.059 --> 00:22:51.230 align:start position:0% are really sort of some of the hardest kind<00:22:48.419> of<00:22:48.539> things<00:22:49.140> to<00:22:49.440> show<00:22:49.620> and<00:22:50.580> I<00:22:50.880> think<00:22:51.000> the 00:22:51.230 --> 00:22:51.240 align:start position:0% kind of things to show and I think the 00:22:51.240 --> 00:22:54.409 align:start position:0% kind of things to show and I think the Mev<00:22:51.720> space<00:22:52.080> of<00:22:52.320> lower<00:22:52.500> balances<00:22:53.100> is<00:22:54.059> still 00:22:54.409 --> 00:22:54.419 align:start position:0% Mev space of lower balances is still 00:22:54.419 --> 00:22:56.690 align:start position:0% Mev space of lower balances is still quite<00:22:54.720> open<00:22:54.900> I<00:22:55.260> think<00:22:55.380> you<00:22:56.100> know 00:22:56.690 --> 00:22:56.700 align:start position:0% quite open I think you know 00:22:56.700 --> 00:22:59.990 align:start position:0% quite open I think you know in<00:22:57.360> in<00:22:57.720> spite<00:22:58.020> of<00:22:58.200> kind<00:22:58.559> of<00:22:58.679> there<00:22:59.100> being<00:22:59.340> some 00:22:59.990 --> 00:23:00.000 align:start position:0% in in spite of kind of there being some 00:23:00.000 --> 00:23:01.909 align:start position:0% in in spite of kind of there being some a<00:23:00.360> camp<00:23:00.480> of<00:23:00.720> some<00:23:00.900> people<00:23:01.020> who<00:23:01.200> believe<00:23:01.380> with 00:23:01.909 --> 00:23:01.919 align:start position:0% a camp of some people who believe with 00:23:01.919 --> 00:23:03.529 align:start position:0% a camp of some people who believe with sort<00:23:02.220> of<00:23:02.280> fair<00:23:02.400> ordering<00:23:02.820> that<00:23:03.000> there<00:23:03.120> exists 00:23:03.529 --> 00:23:03.539 align:start position:0% sort of fair ordering that there exists 00:23:03.539 --> 00:23:05.750 align:start position:0% sort of fair ordering that there exists no<00:23:03.780> such<00:23:04.020> lower<00:23:04.260> bound<00:23:04.500> I<00:23:04.740> I<00:23:04.980> would<00:23:05.280> I<00:23:05.640> would 00:23:05.750 --> 00:23:05.760 align:start position:0% no such lower bound I I would I would 00:23:05.760 --> 00:23:07.730 align:start position:0% no such lower bound I I would I would argue<00:23:06.059> I<00:23:06.539> would<00:23:06.840> argue<00:23:07.080> just<00:23:07.260> proving<00:23:07.620> that 00:23:07.730 --> 00:23:07.740 align:start position:0% argue I would argue just proving that 00:23:07.740 --> 00:23:09.470 align:start position:0% argue I would argue just proving that the<00:23:07.860> lower<00:23:07.980> bound's<00:23:08.340> not<00:23:08.460> zero<00:23:08.820> is<00:23:08.880> already<00:23:09.120> a 00:23:09.470 --> 00:23:09.480 align:start position:0% the lower bound's not zero is already a 00:23:09.480 --> 00:23:12.049 align:start position:0% the lower bound's not zero is already a quite<00:23:10.140> difficult<00:23:10.559> problem<00:23:11.159> that<00:23:11.520> would<00:23:11.700> you 00:23:12.049 --> 00:23:12.059 align:start position:0% quite difficult problem that would you 00:23:12.059 --> 00:23:12.950 align:start position:0% quite difficult problem that would you know 00:23:12.950 --> 00:23:12.960 align:start position:0% know 00:23:12.960 --> 00:23:15.289 align:start position:0% know be<00:23:13.320> worth<00:23:13.500> solving 00:23:15.289 --> 00:23:15.299 align:start position:0% be worth solving 00:23:15.299 --> 00:23:18.649 align:start position:0% be worth solving and<00:23:15.840> the<00:23:16.020> last<00:23:16.200> thing<00:23:16.500> that's<00:23:17.100> a<00:23:17.400> very<00:23:17.580> big<00:23:17.940> uh 00:23:18.649 --> 00:23:18.659 align:start position:0% and the last thing that's a very big uh 00:23:18.659 --> 00:23:21.289 align:start position:0% and the last thing that's a very big uh open<00:23:18.780> problem<00:23:19.140> research-wise<00:23:19.980> in<00:23:20.100> Mev<00:23:20.880> is 00:23:21.289 --> 00:23:21.299 align:start position:0% open problem research-wise in Mev is 00:23:21.299 --> 00:23:23.029 align:start position:0% open problem research-wise in Mev is this<00:23:21.480> concept<00:23:21.840> of<00:23:22.020> aggregation<00:23:22.679> versus 00:23:23.029 --> 00:23:23.039 align:start position:0% this concept of aggregation versus 00:23:23.039 --> 00:23:25.010 align:start position:0% this concept of aggregation versus disaggregation<00:23:23.820> effects<00:23:24.240> and<00:23:24.360> so<00:23:24.539> I<00:23:24.720> think<00:23:24.840> a 00:23:25.010 --> 00:23:25.020 align:start position:0% disaggregation effects and so I think a 00:23:25.020 --> 00:23:26.510 align:start position:0% disaggregation effects and so I think a lot<00:23:25.080> of<00:23:25.200> people<00:23:25.320> in 00:23:26.510 --> 00:23:26.520 align:start position:0% lot of people in 00:23:26.520 --> 00:23:29.930 align:start position:0% lot of people in in<00:23:27.299> the<00:23:27.600> Mev<00:23:27.960> parlance<00:23:28.440> we'll<00:23:29.220> focus<00:23:29.640> on 00:23:29.930 --> 00:23:29.940 align:start position:0% in the Mev parlance we'll focus on 00:23:29.940 --> 00:23:31.430 align:start position:0% in the Mev parlance we'll focus on talking<00:23:30.179> about<00:23:30.419> things<00:23:30.659> like<00:23:30.900> private<00:23:31.320> order 00:23:31.430 --> 00:23:31.440 align:start position:0% talking about things like private order 00:23:31.440 --> 00:23:33.770 align:start position:0% talking about things like private order flow<00:23:31.860> order<00:23:32.100> flow<00:23:32.520> aggregation<00:23:33.059> like<00:23:33.600> what 00:23:33.770 --> 00:23:33.780 align:start position:0% flow order flow aggregation like what 00:23:33.780 --> 00:23:35.390 align:start position:0% flow order flow aggregation like what happens<00:23:33.960> when<00:23:34.200> a<00:23:34.320> builder<00:23:34.620> has<00:23:34.919> all<00:23:35.100> of<00:23:35.280> a 00:23:35.390 --> 00:23:35.400 align:start position:0% happens when a builder has all of a 00:23:35.400 --> 00:23:37.789 align:start position:0% happens when a builder has all of a certain<00:23:35.520> type<00:23:35.700> of<00:23:35.820> order<00:23:35.940> flow<00:23:36.440> there<00:23:37.440> are 00:23:37.789 --> 00:23:37.799 align:start position:0% certain type of order flow there are 00:23:37.799 --> 00:23:40.010 align:start position:0% certain type of order flow there are ways<00:23:38.100> to<00:23:38.340> to<00:23:38.460> talk<00:23:38.700> about<00:23:38.880> what<00:23:39.659> the 00:23:40.010 --> 00:23:40.020 align:start position:0% ways to to talk about what the 00:23:40.020 --> 00:23:41.990 align:start position:0% ways to to talk about what the equilibria<00:23:40.500> of<00:23:40.679> the<00:23:40.799> system<00:23:40.980> are<00:23:41.280> what's<00:23:41.760> the 00:23:41.990 --> 00:23:42.000 align:start position:0% equilibria of the system are what's the 00:23:42.000 --> 00:23:43.970 align:start position:0% equilibria of the system are what's the distribution<00:23:42.419> of<00:23:42.840> Revenue<00:23:43.200> to<00:23:43.740> different 00:23:43.970 --> 00:23:43.980 align:start position:0% distribution of Revenue to different 00:23:43.980 --> 00:23:47.390 align:start position:0% distribution of Revenue to different participants<00:23:44.520> uh<00:23:45.900> based<00:23:46.679> on<00:23:46.799> these<00:23:47.220> kind<00:23:47.340> of 00:23:47.390 --> 00:23:47.400 align:start position:0% participants uh based on these kind of 00:23:47.400 --> 00:23:48.950 align:start position:0% participants uh based on these kind of aggregation<00:23:48.000> versus<00:23:48.240> disaggregation 00:23:48.950 --> 00:23:48.960 align:start position:0% aggregation versus disaggregation 00:23:48.960 --> 00:23:51.289 align:start position:0% aggregation versus disaggregation effects<00:23:49.380> but<00:23:49.980> if<00:23:50.340> I<00:23:50.460> were<00:23:50.580> to<00:23:50.700> kind<00:23:51.000> of<00:23:51.120> give 00:23:51.289 --> 00:23:51.299 align:start position:0% effects but if I were to kind of give 00:23:51.299 --> 00:23:54.049 align:start position:0% effects but if I were to kind of give you<00:23:51.480> the<00:23:51.780> stylized<00:23:52.440> version<00:23:52.679> of<00:23:53.460> what<00:23:53.940> this 00:23:54.049 --> 00:23:54.059 align:start position:0% you the stylized version of what this 00:23:54.059 --> 00:23:55.610 align:start position:0% you the stylized version of what this question<00:23:54.240> is<00:23:54.539> asking<00:23:54.840> and<00:23:54.960> saying<00:23:55.260> what<00:23:55.440> is 00:23:55.610 --> 00:23:55.620 align:start position:0% question is asking and saying what is 00:23:55.620 --> 00:23:58.909 align:start position:0% question is asking and saying what is the<00:23:55.740> coast<00:23:55.919> theorem<00:23:56.460> for<00:23:56.760> Mev<00:23:57.179> so<00:23:57.600> cos<00:23:58.500> theorem 00:23:58.909 --> 00:23:58.919 align:start position:0% the coast theorem for Mev so cos theorem 00:23:58.919 --> 00:24:02.149 align:start position:0% the coast theorem for Mev so cos theorem for<00:23:59.760> for<00:23:59.820> for<00:24:00.140> those<00:24:01.140> who<00:24:01.320> don't<00:24:01.500> know<00:24:01.679> is<00:24:01.919> sort 00:24:02.149 --> 00:24:02.159 align:start position:0% for for for those who don't know is sort 00:24:02.159 --> 00:24:05.890 align:start position:0% for for for those who don't know is sort of<00:24:02.280> a<00:24:02.580> a<00:24:03.059> very<00:24:03.299> famous<00:24:03.919> thing<00:24:04.919> that<00:24:05.220> I<00:24:05.400> think 00:24:05.890 --> 00:24:05.900 align:start position:0% of a a very famous thing that I think 00:24:05.900 --> 00:24:08.570 align:start position:0% of a a very famous thing that I think basically<00:24:06.900> says<00:24:07.200> imagine<00:24:07.860> you<00:24:08.280> have<00:24:08.400> a 00:24:08.570 --> 00:24:08.580 align:start position:0% basically says imagine you have a 00:24:08.580 --> 00:24:09.649 align:start position:0% basically says imagine you have a company 00:24:09.649 --> 00:24:09.659 align:start position:0% company 00:24:09.659 --> 00:24:12.049 align:start position:0% company now<00:24:10.200> suppose<00:24:10.679> the<00:24:10.860> company<00:24:11.039> had<00:24:11.400> everyone<00:24:11.700> at 00:24:12.049 --> 00:24:12.059 align:start position:0% now suppose the company had everyone at 00:24:12.059 --> 00:24:13.669 align:start position:0% now suppose the company had everyone at the<00:24:12.179> company<00:24:12.360> as<00:24:12.600> an<00:24:12.780> individual<00:24:13.200> contractor 00:24:13.669 --> 00:24:13.679 align:start position:0% the company as an individual contractor 00:24:13.679 --> 00:24:15.770 align:start position:0% the company as an individual contractor why<00:24:14.460> is<00:24:14.580> it<00:24:14.700> more<00:24:14.880> inefficient<00:24:15.360> why<00:24:15.600> is<00:24:15.659> it 00:24:15.770 --> 00:24:15.780 align:start position:0% why is it more inefficient why is it 00:24:15.780 --> 00:24:17.390 align:start position:0% why is it more inefficient why is it more<00:24:15.900> efficient<00:24:16.260> to<00:24:16.440> actually<00:24:16.559> organize<00:24:17.100> as<00:24:17.220> a 00:24:17.390 --> 00:24:17.400 align:start position:0% more efficient to actually organize as a 00:24:17.400 --> 00:24:19.549 align:start position:0% more efficient to actually organize as a group<00:24:17.520> versus<00:24:18.059> individual<00:24:18.720> contractors<00:24:19.260> who 00:24:19.549 --> 00:24:19.559 align:start position:0% group versus individual contractors who 00:24:19.559 --> 00:24:21.110 align:start position:0% group versus individual contractors who are<00:24:19.740> giving<00:24:19.980> payments<00:24:20.460> to<00:24:20.580> each<00:24:20.700> other<00:24:20.820> and 00:24:21.110 --> 00:24:21.120 align:start position:0% are giving payments to each other and 00:24:21.120 --> 00:24:23.090 align:start position:0% are giving payments to each other and the<00:24:21.539> coast<00:24:21.659> theorem<00:24:22.140> sort<00:24:22.320> of<00:24:22.380> says<00:24:22.620> there's 00:24:23.090 --> 00:24:23.100 align:start position:0% the coast theorem sort of says there's 00:24:23.100 --> 00:24:24.710 align:start position:0% the coast theorem sort of says there's some<00:24:23.280> equilibrium<00:24:23.820> the<00:24:24.059> Middle<00:24:24.179> where 00:24:24.710 --> 00:24:24.720 align:start position:0% some equilibrium the Middle where 00:24:24.720 --> 00:24:26.750 align:start position:0% some equilibrium the Middle where there's<00:24:25.440> aggregation<00:24:25.980> effects<00:24:26.340> where<00:24:26.580> it's 00:24:26.750 --> 00:24:26.760 align:start position:0% there's aggregation effects where it's 00:24:26.760 --> 00:24:29.149 align:start position:0% there's aggregation effects where it's cheaper<00:24:27.240> for<00:24:27.600> people<00:24:27.780> to<00:24:28.020> work<00:24:28.200> together<00:24:28.440> and 00:24:29.149 --> 00:24:29.159 align:start position:0% cheaper for people to work together and 00:24:29.159 --> 00:24:31.070 align:start position:0% cheaper for people to work together and share<00:24:29.460> common<00:24:29.700> infrastructure<00:24:30.360> up<00:24:30.720> to<00:24:30.900> some 00:24:31.070 --> 00:24:31.080 align:start position:0% share common infrastructure up to some 00:24:31.080 --> 00:24:32.510 align:start position:0% share common infrastructure up to some point<00:24:31.260> and<00:24:31.559> then<00:24:31.679> after<00:24:31.860> that<00:24:32.100> point<00:24:32.280> the 00:24:32.510 --> 00:24:32.520 align:start position:0% point and then after that point the 00:24:32.520 --> 00:24:34.370 align:start position:0% point and then after that point the overhead<00:24:33.299> of<00:24:33.480> managing<00:24:33.840> that<00:24:34.020> many<00:24:34.140> people 00:24:34.370 --> 00:24:34.380 align:start position:0% overhead of managing that many people 00:24:34.380 --> 00:24:37.130 align:start position:0% overhead of managing that many people starts<00:24:35.340> causing<00:24:35.880> you<00:24:36.000> to<00:24:36.299> to<00:24:36.600> lower<00:24:36.840> your 00:24:37.130 --> 00:24:37.140 align:start position:0% starts causing you to to lower your 00:24:37.140 --> 00:24:37.909 align:start position:0% starts causing you to to lower your welfare 00:24:37.909 --> 00:24:37.919 align:start position:0% welfare 00:24:37.919 --> 00:24:40.370 align:start position:0% welfare and<00:24:38.760> this<00:24:39.179> notion<00:24:39.539> of<00:24:39.659> aggregation<00:24:40.140> versus 00:24:40.370 --> 00:24:40.380 align:start position:0% and this notion of aggregation versus 00:24:40.380 --> 00:24:42.590 align:start position:0% and this notion of aggregation versus disaggregation<00:24:41.039> and<00:24:41.280> Mev<00:24:41.700> is<00:24:42.059> is<00:24:42.179> completely 00:24:42.590 --> 00:24:42.600 align:start position:0% disaggregation and Mev is is completely 00:24:42.600 --> 00:24:44.090 align:start position:0% disaggregation and Mev is is completely unsolved<00:24:43.080> yet<00:24:43.200> people<00:24:43.440> are<00:24:43.620> always<00:24:43.799> talking 00:24:44.090 --> 00:24:44.100 align:start position:0% unsolved yet people are always talking 00:24:44.100 --> 00:24:46.730 align:start position:0% unsolved yet people are always talking about<00:24:44.340> it<00:24:44.580> it's<00:24:44.940> it's<00:24:45.000> kind<00:24:45.419> of<00:24:45.559> implied<00:24:46.559> in 00:24:46.730 --> 00:24:46.740 align:start position:0% about it it's it's kind of implied in 00:24:46.740 --> 00:24:49.669 align:start position:0% about it it's it's kind of implied in people's<00:24:47.159> language<00:24:47.400> yet<00:24:48.179> yet<00:24:48.419> not<00:24:48.720> formalized 00:24:49.669 --> 00:24:49.679 align:start position:0% people's language yet yet not formalized 00:24:49.679 --> 00:24:51.890 align:start position:0% people's language yet yet not formalized cool<00:24:50.100> and<00:24:50.700> so<00:24:50.940> that<00:24:51.120> with<00:24:51.360> that<00:24:51.480> I'll<00:24:51.720> leave 00:24:51.890 --> 00:24:51.900 align:start position:0% cool and so that with that I'll leave 00:24:51.900 --> 00:24:54.529 align:start position:0% cool and so that with that I'll leave you<00:24:52.020> for<00:24:52.260> questions<00:24:52.500> and<00:24:52.980> also<00:24:53.280> yeah<00:24:53.640> thank 00:24:54.529 --> 00:24:54.539 align:start position:0% you for questions and also yeah thank 00:24:54.539 --> 00:24:55.909 align:start position:0% you for questions and also yeah thank you<00:24:54.720> uh<00:24:55.080> do<00:24:55.200> you<00:24:55.260> have<00:24:55.320> any<00:24:55.440> questions<00:24:55.620> for 00:24:55.909 --> 00:24:55.919 align:start position:0% you uh do you have any questions for 00:24:55.919 --> 00:24:57.470 align:start position:0% you uh do you have any questions for tarun<00:24:56.280> if<00:24:56.580> so<00:24:56.760> please<00:24:56.880> raise<00:24:57.059> your<00:24:57.240> hand<00:24:57.360> we'll 00:24:57.470 --> 00:24:57.480 align:start position:0% tarun if so please raise your hand we'll 00:24:57.480 --> 00:24:59.450 align:start position:0% tarun if so please raise your hand we'll get<00:24:57.659> you<00:24:57.780> a<00:24:57.960> mic<00:24:58.200> we<00:24:58.559> got<00:24:58.740> one<00:24:58.919> question<00:24:59.100> on 00:24:59.450 --> 00:24:59.460 align:start position:0% get you a mic we got one question on 00:24:59.460 --> 00:25:01.190 align:start position:0% get you a mic we got one question on this<00:24:59.580> side<00:24:59.760> we'll<00:25:00.179> get<00:25:00.419> to<00:25:00.539> you<00:25:00.720> in<00:25:00.960> a<00:25:01.080> second 00:25:01.190 --> 00:25:01.200 align:start position:0% this side we'll get to you in a second 00:25:01.200 --> 00:25:04.490 align:start position:0% this side we'll get to you in a second got<00:25:01.620> another<00:25:01.740> question<00:25:02.039> at<00:25:02.280> the<00:25:02.400> back<00:25:02.580> hi<00:25:03.539> uh 00:25:04.490 --> 00:25:04.500 align:start position:0% got another question at the back hi uh 00:25:04.500 --> 00:25:07.870 align:start position:0% got another question at the back hi uh so<00:25:04.740> my<00:25:05.039> question<00:25:05.280> is<00:25:05.760> you<00:25:06.120> gave<00:25:06.299> an<00:25:06.539> example<00:25:06.960> of 00:25:07.870 --> 00:25:07.880 align:start position:0% so my question is you gave an example of 00:25:07.880 --> 00:25:10.970 align:start position:0% so my question is you gave an example of uh<00:25:08.880> you<00:25:09.179> gave<00:25:09.360> first<00:25:09.600> theoretical<00:25:10.260> example<00:25:10.740> of 00:25:10.970 --> 00:25:10.980 align:start position:0% uh you gave first theoretical example of 00:25:10.980 --> 00:25:14.750 align:start position:0% uh you gave first theoretical example of how<00:25:11.419> uh<00:25:12.419> removing<00:25:13.020> an<00:25:13.620> edge<00:25:13.860> from<00:25:14.340> a<00:25:14.580> network 00:25:14.750 --> 00:25:14.760 align:start position:0% how uh removing an edge from a network 00:25:14.760 --> 00:25:18.230 align:start position:0% how uh removing an edge from a network can<00:25:15.299> make<00:25:15.659> traffic<00:25:16.559> more<00:25:16.919> efficient<00:25:17.280> and<00:25:18.120> then 00:25:18.230 --> 00:25:18.240 align:start position:0% can make traffic more efficient and then 00:25:18.240 --> 00:25:20.090 align:start position:0% can make traffic more efficient and then you<00:25:18.419> give<00:25:18.600> an<00:25:18.780> analogy<00:25:19.260> for<00:25:19.440> how<00:25:19.740> this<00:25:19.980> can 00:25:20.090 --> 00:25:20.100 align:start position:0% you give an analogy for how this can 00:25:20.100 --> 00:25:22.730 align:start position:0% you give an analogy for how this can also<00:25:20.400> happen<00:25:20.580> with<00:25:20.940> amms<00:25:21.539> and<00:25:22.320> you<00:25:22.440> gave<00:25:22.559> a 00:25:22.730 --> 00:25:22.740 align:start position:0% also happen with amms and you gave a 00:25:22.740 --> 00:25:24.230 align:start position:0% also happen with amms and you gave a practical<00:25:23.039> example<00:25:23.400> of<00:25:23.520> how<00:25:23.820> it<00:25:23.940> could<00:25:24.059> happen 00:25:24.230 --> 00:25:24.240 align:start position:0% practical example of how it could happen 00:25:24.240 --> 00:25:27.950 align:start position:0% practical example of how it could happen with<00:25:24.539> amms<00:25:25.260> but<00:25:25.799> I<00:25:26.220> I<00:25:26.520> did<00:25:26.760> not<00:25:26.940> understand<00:25:27.179> how 00:25:27.950 --> 00:25:27.960 align:start position:0% with amms but I I did not understand how 00:25:27.960 --> 00:25:30.710 align:start position:0% with amms but I I did not understand how this<00:25:28.200> practical<00:25:28.559> example<00:25:28.980> works<00:25:29.340> so<00:25:29.760> could 00:25:30.710 --> 00:25:30.720 align:start position:0% this practical example works so could 00:25:30.720 --> 00:25:33.909 align:start position:0% this practical example works so could could<00:25:31.200> you<00:25:31.440> explain<00:25:31.620> more<00:25:32.039> like<00:25:32.539> how<00:25:33.539> could 00:25:33.909 --> 00:25:33.919 align:start position:0% could you explain more like how could 00:25:33.919 --> 00:25:38.269 align:start position:0% could you explain more like how could Mev<00:25:34.919> improve<00:25:35.580> the<00:25:36.000> efficiency<00:25:36.720> of<00:25:37.260> trading<00:25:37.860> on 00:25:38.269 --> 00:25:38.279 align:start position:0% Mev improve the efficiency of trading on 00:25:38.279 --> 00:25:40.970 align:start position:0% Mev improve the efficiency of trading on this<00:25:38.460> scenario<00:25:38.880> with<00:25:39.059> three<00:25:39.480> two<00:25:39.840> pairs 00:25:40.970 --> 00:25:40.980 align:start position:0% this scenario with three two pairs 00:25:40.980 --> 00:25:43.250 align:start position:0% this scenario with three two pairs yeah<00:25:41.580> so<00:25:41.940> so<00:25:42.240> think<00:25:42.720> of<00:25:42.840> it<00:25:42.900> this<00:25:43.020> way<00:25:43.140> I 00:25:43.250 --> 00:25:43.260 align:start position:0% yeah so so think of it this way I 00:25:43.260 --> 00:25:45.830 align:start position:0% yeah so so think of it this way I imagine<00:25:43.380> that<00:25:43.799> there's<00:25:44.299> uh<00:25:45.299> people<00:25:45.480> who<00:25:45.659> want 00:25:45.830 --> 00:25:45.840 align:start position:0% imagine that there's uh people who want 00:25:45.840 --> 00:25:47.690 align:start position:0% imagine that there's uh people who want to<00:25:45.960> trade<00:25:46.080> from<00:25:46.260> token<00:25:46.620> a<00:25:46.679> token<00:25:47.100> B<00:25:47.220> and 00:25:47.690 --> 00:25:47.700 align:start position:0% to trade from token a token B and 00:25:47.700 --> 00:25:49.789 align:start position:0% to trade from token a token B and there's<00:25:47.820> an<00:25:48.059> order<00:25:48.179> flow<00:25:48.480> of<00:25:48.659> n<00:25:48.840> orders<00:25:49.260> from<00:25:49.620> A 00:25:49.789 --> 00:25:49.799 align:start position:0% there's an order flow of n orders from A 00:25:49.799 --> 00:25:50.930 align:start position:0% there's an order flow of n orders from A to<00:25:49.980> B 00:25:50.930 --> 00:25:50.940 align:start position:0% to B 00:25:50.940 --> 00:25:52.190 align:start position:0% to B uh 00:25:52.190 --> 00:25:52.200 align:start position:0% uh 00:25:52.200 --> 00:25:55.250 align:start position:0% uh if<00:25:52.679> I<00:25:52.860> look<00:25:53.100> at<00:25:53.279> how<00:25:53.700> to<00:25:53.820> optimally<00:25:54.240> route<00:25:54.600> the 00:25:55.250 --> 00:25:55.260 align:start position:0% if I look at how to optimally route the 00:25:55.260 --> 00:25:57.289 align:start position:0% if I look at how to optimally route the orders<00:25:55.500> from<00:25:55.679> A<00:25:55.799> to<00:25:55.919> B 00:25:57.289 --> 00:25:57.299 align:start position:0% orders from A to B 00:25:57.299 --> 00:25:59.210 align:start position:0% orders from A to B um<00:25:57.360> if<00:25:57.779> everyone<00:25:58.020> gets<00:25:58.440> routed<00:25:58.799> on<00:25:58.980> the<00:25:59.100> same 00:25:59.210 --> 00:25:59.220 align:start position:0% um if everyone gets routed on the same 00:25:59.220 --> 00:26:01.310 align:start position:0% um if everyone gets routed on the same route<00:25:59.460> the<00:26:00.059> price<00:26:00.240> that<00:26:00.539> everyone<00:26:00.659> pays<00:26:01.200> on 00:26:01.310 --> 00:26:01.320 align:start position:0% route the price that everyone pays on 00:26:01.320 --> 00:26:03.890 align:start position:0% route the price that everyone pays on average<00:26:01.500> could<00:26:01.919> be<00:26:02.039> a<00:26:02.159> lot<00:26:02.279> higher<00:26:02.640> right<00:26:03.299> if 00:26:03.890 --> 00:26:03.900 align:start position:0% average could be a lot higher right if 00:26:03.900 --> 00:26:05.750 align:start position:0% average could be a lot higher right if everyone<00:26:04.140> gets<00:26:04.440> routed<00:26:04.799> on<00:26:05.100> different<00:26:05.400> routes 00:26:05.750 --> 00:26:05.760 align:start position:0% everyone gets routed on different routes 00:26:05.760 --> 00:26:06.890 align:start position:0% everyone gets routed on different routes throughout<00:26:06.059> the<00:26:06.120> network<00:26:06.240> you<00:26:06.600> could<00:26:06.720> have 00:26:06.890 --> 00:26:06.900 align:start position:0% throughout the network you could have 00:26:06.900 --> 00:26:08.930 align:start position:0% throughout the network you could have sort<00:26:07.260> of<00:26:07.320> your<00:26:07.620> your<00:26:07.679> load<00:26:08.159> balancing<00:26:08.520> what 00:26:08.930 --> 00:26:08.940 align:start position:0% sort of your your load balancing what 00:26:08.940 --> 00:26:11.630 align:start position:0% sort of your your load balancing what the<00:26:09.059> price<00:26:09.240> impact<00:26:09.600> is<00:26:10.260> and<00:26:10.980> the<00:26:11.220> point<00:26:11.340> is 00:26:11.630 --> 00:26:11.640 align:start position:0% the price impact is and the point is 00:26:11.640 --> 00:26:13.610 align:start position:0% the price impact is and the point is that<00:26:11.940> the<00:26:12.179> med<00:26:12.419> Searchers<00:26:13.080> are<00:26:13.260> sort<00:26:13.500> of 00:26:13.610 --> 00:26:13.620 align:start position:0% that the med Searchers are sort of 00:26:13.620 --> 00:26:16.490 align:start position:0% that the med Searchers are sort of acting<00:26:14.580> in<00:26:14.880> some<00:26:15.240> weird<00:26:15.539> capacity<00:26:16.080> is<00:26:16.320> almost 00:26:16.490 --> 00:26:16.500 align:start position:0% acting in some weird capacity is almost 00:26:16.500 --> 00:26:18.590 align:start position:0% acting in some weird capacity is almost like<00:26:16.740> air<00:26:16.919> traffic<00:26:17.159> controllers<00:26:17.760> when 00:26:18.590 --> 00:26:18.600 align:start position:0% like air traffic controllers when 00:26:18.600 --> 00:26:20.149 align:start position:0% like air traffic controllers when there's<00:26:18.840> a<00:26:19.020> bunch<00:26:19.140> of<00:26:19.320> traffic<00:26:19.500> going<00:26:19.799> on<00:26:19.980> the 00:26:20.149 --> 00:26:20.159 align:start position:0% there's a bunch of traffic going on the 00:26:20.159 --> 00:26:22.190 align:start position:0% there's a bunch of traffic going on the same<00:26:20.279> route<00:26:20.460> it<00:26:20.940> increases<00:26:21.299> the<00:26:21.480> Mev<00:26:21.840> profit 00:26:22.190 --> 00:26:22.200 align:start position:0% same route it increases the Mev profit 00:26:22.200 --> 00:26:24.169 align:start position:0% same route it increases the Mev profit but<00:26:22.740> as<00:26:22.919> the<00:26:23.100> Mev<00:26:23.400> profit<00:26:23.760> goes<00:26:23.940> up<00:26:24.000> then 00:26:24.169 --> 00:26:24.179 align:start position:0% but as the Mev profit goes up then 00:26:24.179 --> 00:26:26.690 align:start position:0% but as the Mev profit goes up then people<00:26:24.360> start<00:26:24.539> routing<00:26:24.960> away<00:26:25.080> from<00:26:25.320> that<00:26:25.980> and 00:26:26.690 --> 00:26:26.700 align:start position:0% people start routing away from that and 00:26:26.700 --> 00:26:28.610 align:start position:0% people start routing away from that and you<00:26:27.059> could<00:26:27.120> effectively<00:26:27.659> think<00:26:27.840> of<00:26:27.960> it<00:26:28.140> as<00:26:28.320> a 00:26:28.610 --> 00:26:28.620 align:start position:0% you could effectively think of it as a 00:26:28.620 --> 00:26:30.529 align:start position:0% you could effectively think of it as a way<00:26:28.799> of<00:26:29.100> sort<00:26:29.460> of<00:26:29.520> having<00:26:29.700> a<00:26:29.940> decentralized 00:26:30.529 --> 00:26:30.539 align:start position:0% way of sort of having a decentralized 00:26:30.539 --> 00:26:32.630 align:start position:0% way of sort of having a decentralized coordinator<00:26:30.960> where<00:26:31.799> where<00:26:32.159> it<00:26:32.340> comes<00:26:32.580> from 00:26:32.630 --> 00:26:32.640 align:start position:0% coordinator where where it comes from 00:26:32.640 --> 00:26:34.789 align:start position:0% coordinator where where it comes from the<00:26:32.760> fact<00:26:32.940> that<00:26:33.179> the<00:26:34.020> more<00:26:34.140> traffic<00:26:34.380> going<00:26:34.620> on 00:26:34.789 --> 00:26:34.799 align:start position:0% the fact that the more traffic going on 00:26:34.799 --> 00:26:37.190 align:start position:0% the fact that the more traffic going on one<00:26:35.039> route<00:26:35.279> the<00:26:36.059> more<00:26:36.179> the<00:26:36.480> sandwich<00:26:36.600> profit 00:26:37.190 --> 00:26:37.200 align:start position:0% one route the more the sandwich profit 00:26:37.200 --> 00:26:39.350 align:start position:0% one route the more the sandwich profit but<00:26:37.620> then<00:26:37.740> once<00:26:38.100> people<00:26:38.279> start<00:26:38.640> realizing<00:26:39.299> the 00:26:39.350 --> 00:26:39.360 align:start position:0% but then once people start realizing the 00:26:39.360 --> 00:26:41.510 align:start position:0% but then once people start realizing the sandwich<00:26:39.539> profit<00:26:39.960> they<00:26:40.080> route<00:26:40.260> elsewhere<00:26:41.039> and 00:26:41.510 --> 00:26:41.520 align:start position:0% sandwich profit they route elsewhere and 00:26:41.520 --> 00:26:43.850 align:start position:0% sandwich profit they route elsewhere and so<00:26:41.700> this<00:26:42.120> routing<00:26:42.539> problem<00:26:42.840> is<00:26:43.200> actually<00:26:43.440> you 00:26:43.850 --> 00:26:43.860 align:start position:0% so this routing problem is actually you 00:26:43.860 --> 00:26:46.549 align:start position:0% so this routing problem is actually you know<00:26:43.919> the<00:26:44.039> quintessential<00:26:44.700> example<00:26:45.120> of<00:26:45.559> uh 00:26:46.549 --> 00:26:46.559 align:start position:0% know the quintessential example of uh 00:26:46.559 --> 00:26:48.049 align:start position:0% know the quintessential example of uh these<00:26:46.860> cases<00:26:47.159> where 00:26:48.049 --> 00:26:48.059 align:start position:0% these cases where 00:26:48.059 --> 00:26:50.230 align:start position:0% these cases where congestion<00:26:48.900> sort<00:26:49.320> of 00:26:50.230 --> 00:26:50.240 align:start position:0% congestion sort of 00:26:50.240 --> 00:26:53.149 align:start position:0% congestion sort of you<00:26:51.240> can<00:26:51.360> you<00:26:51.600> can<00:26:51.779> add<00:26:52.140> in<00:26:52.380> some<00:26:52.679> sort<00:26:52.799> of<00:26:52.919> like 00:26:53.149 --> 00:26:53.159 align:start position:0% you can you can add in some sort of like 00:26:53.159 --> 00:26:56.029 align:start position:0% you can you can add in some sort of like incentives<00:26:54.059> to<00:26:54.240> avoid<00:26:54.600> congestion<00:26:55.140> and<00:26:55.860> and 00:26:56.029 --> 00:26:56.039 align:start position:0% incentives to avoid congestion and and 00:26:56.039 --> 00:26:57.529 align:start position:0% incentives to avoid congestion and and you<00:26:56.220> know<00:26:56.340> a<00:26:56.460> lot<00:26:56.580> of<00:26:56.640> internet<00:26:56.820> routing 00:26:57.529 --> 00:26:57.539 align:start position:0% you know a lot of internet routing 00:26:57.539 --> 00:26:59.750 align:start position:0% you know a lot of internet routing traffic<00:26:57.779> routing<00:26:58.320> on<00:26:58.440> the<00:26:58.559> internet<00:26:58.620> a<00:26:59.460> lot<00:26:59.640> of 00:26:59.750 --> 00:26:59.760 align:start position:0% traffic routing on the internet a lot of 00:26:59.760 --> 00:27:01.730 align:start position:0% traffic routing on the internet a lot of that<00:27:00.419> kind<00:27:00.539> of<00:27:00.659> work<00:27:00.840> is<00:27:01.080> like<00:27:01.260> where<00:27:01.500> this 00:27:01.730 --> 00:27:01.740 align:start position:0% that kind of work is like where this 00:27:01.740 --> 00:27:03.649 align:start position:0% that kind of work is like where this initially<00:27:02.220> started<00:27:02.820> and<00:27:03.120> this<00:27:03.299> is<00:27:03.360> sort<00:27:03.539> of 00:27:03.649 --> 00:27:03.659 align:start position:0% initially started and this is sort of 00:27:03.659 --> 00:27:05.810 align:start position:0% initially started and this is sort of making<00:27:03.840> an<00:27:04.080> analog<00:27:04.620> about<00:27:04.799> here<00:27:04.980> but<00:27:05.279> the<00:27:05.700> key 00:27:05.810 --> 00:27:05.820 align:start position:0% making an analog about here but the key 00:27:05.820 --> 00:27:07.669 align:start position:0% making an analog about here but the key is<00:27:06.000> that<00:27:06.240> someone<00:27:06.779> is<00:27:07.080> getting<00:27:07.200> the<00:27:07.380> worst 00:27:07.669 --> 00:27:07.679 align:start position:0% is that someone is getting the worst 00:27:07.679 --> 00:27:09.169 align:start position:0% is that someone is getting the worst price<00:27:07.799> by<00:27:08.039> being<00:27:08.460> sandwiched<00:27:08.880> there's<00:27:09.000> no 00:27:09.169 --> 00:27:09.179 align:start position:0% price by being sandwiched there's no 00:27:09.179 --> 00:27:10.310 align:start position:0% price by being sandwiched there's no doubt 00:27:10.310 --> 00:27:10.320 align:start position:0% doubt 00:27:10.320 --> 00:27:13.430 align:start position:0% doubt but<00:27:10.980> everyone<00:27:11.400> going<00:27:12.000> across<00:27:12.419> the<00:27:12.539> graph<00:27:12.840> is 00:27:13.430 --> 00:27:13.440 align:start position:0% but everyone going across the graph is 00:27:13.440 --> 00:27:15.409 align:start position:0% but everyone going across the graph is getting<00:27:13.620> a<00:27:13.860> better<00:27:14.039> price<00:27:14.279> on<00:27:14.520> average<00:27:14.700> and 00:27:15.409 --> 00:27:15.419 align:start position:0% getting a better price on average and 00:27:15.419 --> 00:27:17.149 align:start position:0% getting a better price on average and that<00:27:15.659> that's<00:27:15.960> the<00:27:16.200> social<00:27:16.380> welfare<00:27:16.860> versus 00:27:17.149 --> 00:27:17.159 align:start position:0% that that's the social welfare versus 00:27:17.159 --> 00:27:19.610 align:start position:0% that that's the social welfare versus Revenue<00:27:17.580> trade-off<00:27:18.059> if<00:27:18.480> that<00:27:18.659> makes<00:27:18.779> sense 00:27:19.610 --> 00:27:19.620 align:start position:0% Revenue trade-off if that makes sense 00:27:19.620 --> 00:27:20.990 align:start position:0% Revenue trade-off if that makes sense awesome<00:27:19.860> we<00:27:20.220> have<00:27:20.279> another<00:27:20.400> question<00:27:20.640> at<00:27:20.820> the 00:27:20.990 --> 00:27:21.000 align:start position:0% awesome we have another question at the 00:27:21.000 --> 00:27:21.830 align:start position:0% awesome we have another question at the back 00:27:21.830 --> 00:27:21.840 align:start position:0% back 00:27:21.840 --> 00:27:24.049 align:start position:0% back hello<00:27:22.320> uh<00:27:22.980> good<00:27:23.159> afternoon<00:27:23.340> I<00:27:23.700> love<00:27:23.880> the 00:27:24.049 --> 00:27:24.059 align:start position:0% hello uh good afternoon I love the 00:27:24.059 --> 00:27:25.909 align:start position:0% hello uh good afternoon I love the presentation<00:27:24.419> as<00:27:24.600> usual<00:27:24.900> my<00:27:25.500> question<00:27:25.620> is 00:27:25.909 --> 00:27:25.919 align:start position:0% presentation as usual my question is 00:27:25.919 --> 00:27:28.789 align:start position:0% presentation as usual my question is have<00:27:26.760> you<00:27:26.940> made<00:27:27.179> any<00:27:27.480> studies<00:27:27.900> around<00:27:28.140> uh 00:27:28.789 --> 00:27:28.799 align:start position:0% have you made any studies around uh 00:27:28.799 --> 00:27:30.409 align:start position:0% have you made any studies around uh Central<00:27:29.100> Bank<00:27:29.340> digital<00:27:29.700> currencies<00:27:30.120> or<00:27:30.299> even 00:27:30.409 --> 00:27:30.419 align:start position:0% Central Bank digital currencies or even 00:27:30.419 --> 00:27:33.769 align:start position:0% Central Bank digital currencies or even Fiat<00:27:30.900> currencies<00:27:31.320> using<00:27:31.980> the<00:27:32.100> same<00:27:32.220> Theory 00:27:33.769 --> 00:27:33.779 align:start position:0% Fiat currencies using the same Theory 00:27:33.779 --> 00:27:35.750 align:start position:0% Fiat currencies using the same Theory yeah<00:27:34.200> I<00:27:34.440> mean<00:27:34.559> I<00:27:34.799> think<00:27:34.919> the<00:27:35.100> hard<00:27:35.220> part<00:27:35.460> with 00:27:35.750 --> 00:27:35.760 align:start position:0% yeah I mean I think the hard part with 00:27:35.760 --> 00:27:37.490 align:start position:0% yeah I mean I think the hard part with any<00:27:36.059> of<00:27:36.179> these<00:27:36.360> sort<00:27:36.539> of<00:27:36.600> like<00:27:36.779> pseudo 00:27:37.490 --> 00:27:37.500 align:start position:0% any of these sort of like pseudo 00:27:37.500 --> 00:27:40.070 align:start position:0% any of these sort of like pseudo centralized<00:27:38.100> Federated<00:27:38.580> type<00:27:39.059> of<00:27:39.179> things<00:27:39.360> is 00:27:40.070 --> 00:27:40.080 align:start position:0% centralized Federated type of things is 00:27:40.080 --> 00:27:43.789 align:start position:0% centralized Federated type of things is well<00:27:40.799> I<00:27:41.039> I<00:27:41.220> mean<00:27:41.659> the<00:27:42.659> validator<00:27:43.020> should<00:27:43.440> can 00:27:43.789 --> 00:27:43.799 align:start position:0% well I I mean the validator should can 00:27:43.799 --> 00:27:46.070 align:start position:0% well I I mean the validator should can just<00:27:44.039> always<00:27:44.340> do<00:27:44.580> the<00:27:44.700> Mev<00:27:45.120> themselves<00:27:45.539> right 00:27:46.070 --> 00:27:46.080 align:start position:0% just always do the Mev themselves right 00:27:46.080 --> 00:27:48.529 align:start position:0% just always do the Mev themselves right like<00:27:46.500> the<00:27:47.279> limit<00:27:47.400> of<00:27:47.760> of<00:27:47.880> the<00:27:48.120> centralized 00:27:48.529 --> 00:27:48.539 align:start position:0% like the limit of of the centralized 00:27:48.539 --> 00:27:49.789 align:start position:0% like the limit of of the centralized thing<00:27:48.720> is<00:27:48.840> like<00:27:49.020> well<00:27:49.200> what<00:27:49.500> does<00:27:49.620> Facebook 00:27:49.789 --> 00:27:49.799 align:start position:0% thing is like well what does Facebook 00:27:49.799 --> 00:27:50.990 align:start position:0% thing is like well what does Facebook what<00:27:50.039> are<00:27:50.159> Facebooking<00:27:50.580> Google<00:27:50.760> doing 00:27:50.990 --> 00:27:51.000 align:start position:0% what are Facebooking Google doing 00:27:51.000 --> 00:27:52.789 align:start position:0% what are Facebooking Google doing they're<00:27:51.720> just<00:27:51.900> doing<00:27:52.020> Mev<00:27:52.440> on<00:27:52.620> their<00:27:52.679> own 00:27:52.789 --> 00:27:52.799 align:start position:0% they're just doing Mev on their own 00:27:52.799 --> 00:27:54.710 align:start position:0% they're just doing Mev on their own auctions<00:27:53.279> right<00:27:53.520> they're<00:27:54.000> constructing<00:27:54.600> the 00:27:54.710 --> 00:27:54.720 align:start position:0% auctions right they're constructing the 00:27:54.720 --> 00:27:56.630 align:start position:0% auctions right they're constructing the bidding<00:27:55.020> strategies<00:27:55.380> for<00:27:55.620> you<00:27:55.799> they're<00:27:56.460> like 00:27:56.630 --> 00:27:56.640 align:start position:0% bidding strategies for you they're like 00:27:56.640 --> 00:27:58.190 align:start position:0% bidding strategies for you they're like we're<00:27:56.820> using<00:27:57.120> the<00:27:57.299> highest<00:27:57.600> machine<00:27:57.779> learning 00:27:58.190 --> 00:27:58.200 align:start position:0% we're using the highest machine learning 00:27:58.200 --> 00:28:00.409 align:start position:0% we're using the highest machine learning to<00:27:58.440> give<00:27:58.559> you<00:27:58.740> optimal<00:27:59.279> like<00:27:59.640> targeting<00:28:00.299> it's 00:28:00.409 --> 00:28:00.419 align:start position:0% to give you optimal like targeting it's 00:28:00.419 --> 00:28:01.909 align:start position:0% to give you optimal like targeting it's like<00:28:00.600> it<00:28:00.840> actually<00:28:00.960> means<00:28:01.320> actually<00:28:01.559> we're 00:28:01.909 --> 00:28:01.919 align:start position:0% like it actually means actually we're 00:28:01.919 --> 00:28:03.110 align:start position:0% like it actually means actually we're just<00:28:02.100> going<00:28:02.159> to<00:28:02.279> front<00:28:02.400> run<00:28:02.580> you<00:28:02.820> in<00:28:02.940> our 00:28:03.110 --> 00:28:03.120 align:start position:0% just going to front run you in our 00:28:03.120 --> 00:28:04.730 align:start position:0% just going to front run you in our auction<00:28:03.299> but<00:28:03.840> it's<00:28:03.960> too<00:28:04.200> complicated<00:28:04.559> to 00:28:04.730 --> 00:28:04.740 align:start position:0% auction but it's too complicated to 00:28:04.740 --> 00:28:05.750 align:start position:0% auction but it's too complicated to explain<00:28:04.860> how 00:28:05.750 --> 00:28:05.760 align:start position:0% explain how 00:28:05.760 --> 00:28:07.730 align:start position:0% explain how so<00:28:06.299> in<00:28:06.480> the<00:28:06.600> centralized<00:28:06.960> World<00:28:07.200> these<00:28:07.559> types 00:28:07.730 --> 00:28:07.740 align:start position:0% so in the centralized World these types 00:28:07.740 --> 00:28:08.930 align:start position:0% so in the centralized World these types of<00:28:07.799> things<00:28:07.980> are<00:28:08.159> not<00:28:08.340> that<00:28:08.460> interesting<00:28:08.820> to 00:28:08.930 --> 00:28:08.940 align:start position:0% of things are not that interesting to 00:28:08.940 --> 00:28:10.730 align:start position:0% of things are not that interesting to analyze<00:28:09.299> from<00:28:09.480> that<00:28:09.600> perspective<00:28:09.960> in<00:28:10.620> the 00:28:10.730 --> 00:28:10.740 align:start position:0% analyze from that perspective in the 00:28:10.740 --> 00:28:12.890 align:start position:0% analyze from that perspective in the sense<00:28:10.860> that<00:28:11.220> the<00:28:12.000> centralized<00:28:12.480> coordinator 00:28:12.890 --> 00:28:12.900 align:start position:0% sense that the centralized coordinator 00:28:12.900 --> 00:28:14.510 align:start position:0% sense that the centralized coordinator will<00:28:13.200> just<00:28:13.320> like<00:28:13.440> choose<00:28:13.799> the<00:28:13.980> most<00:28:14.100> expensive 00:28:14.510 --> 00:28:14.520 align:start position:0% will just like choose the most expensive 00:28:14.520 --> 00:28:16.250 align:start position:0% will just like choose the most expensive route<00:28:14.700> for<00:28:14.940> you<00:28:15.059> all<00:28:15.299> the<00:28:15.419> time<00:28:15.539> right<00:28:15.900> but<00:28:16.140> in 00:28:16.250 --> 00:28:16.260 align:start position:0% route for you all the time right but in 00:28:16.260 --> 00:28:17.269 align:start position:0% route for you all the time right but in the<00:28:16.320> decentralized<00:28:16.799> world<00:28:16.980> is<00:28:17.159> actually 00:28:17.269 --> 00:28:17.279 align:start position:0% the decentralized world is actually 00:28:17.279 --> 00:28:19.430 align:start position:0% the decentralized world is actually quite<00:28:17.460> interesting<00:28:17.820> because<00:28:18.059> the<00:28:18.960> user<00:28:19.260> has 00:28:19.430 --> 00:28:19.440 align:start position:0% quite interesting because the user has 00:28:19.440 --> 00:28:22.130 align:start position:0% quite interesting because the user has to<00:28:19.620> choose<00:28:19.919> their<00:28:20.159> own<00:28:20.340> way<00:28:21.120> uh<00:28:21.840> through<00:28:22.020> the 00:28:22.130 --> 00:28:22.140 align:start position:0% to choose their own way uh through the 00:28:22.140 --> 00:28:23.510 align:start position:0% to choose their own way uh through the network 00:28:23.510 --> 00:28:23.520 align:start position:0% network 00:28:23.520 --> 00:28:27.289 align:start position:0% network um<00:28:23.580> so<00:28:23.940> yeah<00:28:24.140> that<00:28:25.140> that<00:28:25.799> sort<00:28:26.100> of<00:28:26.279> you<00:28:26.400> great 00:28:27.289 --> 00:28:27.299 align:start position:0% um so yeah that that sort of you great 00:28:27.299 --> 00:28:29.210 align:start position:0% um so yeah that that sort of you great well<00:28:28.080> one<00:28:28.320> last<00:28:28.500> question<00:28:28.679> on<00:28:28.860> that<00:28:28.980> side<00:28:29.039> and 00:28:29.210 --> 00:28:29.220 align:start position:0% well one last question on that side and 00:28:29.220 --> 00:28:30.529 align:start position:0% well one last question on that side and we'll<00:28:29.340> move<00:28:29.460> on<00:28:29.580> to<00:28:29.700> the<00:28:29.820> next<00:28:29.880> talk<00:28:30.059> so<00:28:30.360> please 00:28:30.529 --> 00:28:30.539 align:start position:0% we'll move on to the next talk so please 00:28:30.539 --> 00:28:32.810 align:start position:0% we'll move on to the next talk so please go<00:28:30.720> ahead<00:28:30.900> cool<00:28:31.320> yeah<00:28:31.799> hi<00:28:32.039> I'm<00:28:32.279> following<00:28:32.700> up 00:28:32.810 --> 00:28:32.820 align:start position:0% go ahead cool yeah hi I'm following up 00:28:32.820 --> 00:28:34.610 align:start position:0% go ahead cool yeah hi I'm following up on<00:28:32.940> the<00:28:33.059> first<00:28:33.179> question<00:28:33.419> in<00:28:34.200> the<00:28:34.320> brass 00:28:34.610 --> 00:28:34.620 align:start position:0% on the first question in the brass 00:28:34.620 --> 00:28:37.190 align:start position:0% on the first question in the brass example<00:28:35.100> the<00:28:35.400> conditions<00:28:35.820> under<00:28:36.000> which<00:28:36.419> the 00:28:37.190 --> 00:28:37.200 align:start position:0% example the conditions under which the 00:28:37.200 --> 00:28:39.890 align:start position:0% example the conditions under which the routing<00:28:38.159> would<00:28:38.400> actually<00:28:38.640> or<00:28:39.000> in<00:28:39.179> which<00:28:39.360> Mev 00:28:39.890 --> 00:28:39.900 align:start position:0% routing would actually or in which Mev 00:28:39.900 --> 00:28:41.810 align:start position:0% routing would actually or in which Mev would<00:28:40.080> be<00:28:40.200> beneficial<00:28:40.620> is<00:28:40.799> and<00:28:41.159> if<00:28:41.580> you<00:28:41.700> can 00:28:41.810 --> 00:28:41.820 align:start position:0% would be beneficial is and if you can 00:28:41.820 --> 00:28:43.310 align:start position:0% would be beneficial is and if you can teleport<00:28:42.240> right<00:28:42.480> these<00:28:42.779> conditions<00:28:43.200> are 00:28:43.310 --> 00:28:43.320 align:start position:0% teleport right these conditions are 00:28:43.320 --> 00:28:45.289 align:start position:0% teleport right these conditions are usually<00:28:43.679> not<00:28:43.860> met<00:28:44.100> what<00:28:44.700> are<00:28:44.820> the<00:28:44.940> you<00:28:45.120> said 00:28:45.289 --> 00:28:45.299 align:start position:0% usually not met what are the you said 00:28:45.299 --> 00:28:46.730 align:start position:0% usually not met what are the you said under<00:28:45.480> certain<00:28:45.779> conditions<00:28:46.200> this<00:28:46.440> applies 00:28:46.730 --> 00:28:46.740 align:start position:0% under certain conditions this applies 00:28:46.740 --> 00:28:48.470 align:start position:0% under certain conditions this applies for<00:28:46.919> MMS<00:28:47.400> what<00:28:47.580> are<00:28:47.700> those<00:28:47.820> conditions<00:28:48.299> does 00:28:48.470 --> 00:28:48.480 align:start position:0% for MMS what are those conditions does 00:28:48.480 --> 00:28:50.450 align:start position:0% for MMS what are those conditions does it<00:28:48.600> mean<00:28:48.720> if<00:28:48.840> I<00:28:49.020> can<00:28:49.140> trade<00:28:49.380> you<00:28:49.980> know<00:28:50.039> if<00:28:50.159> I<00:28:50.340> can 00:28:50.450 --> 00:28:50.460 align:start position:0% it mean if I can trade you know if I can 00:28:50.460 --> 00:28:53.930 align:start position:0% it mean if I can trade you know if I can print<00:28:51.000> free<00:28:51.240> money<00:28:51.539> or<00:28:51.960> trade<00:28:52.440> it<00:28:52.940> unlimited 00:28:53.930 --> 00:28:53.940 align:start position:0% print free money or trade it unlimited 00:28:53.940 --> 00:28:55.490 align:start position:0% print free money or trade it unlimited or<00:28:54.059> zero<00:28:54.419> exchange<00:28:54.720> rate<00:28:54.840> or<00:28:55.140> what<00:28:55.260> are<00:28:55.380> the 00:28:55.490 --> 00:28:55.500 align:start position:0% or zero exchange rate or what are the 00:28:55.500 --> 00:28:57.350 align:start position:0% or zero exchange rate or what are the conditions<00:28:55.860> in<00:28:56.039> which<00:28:56.220> no<00:28:56.640> yeah<00:28:57.000> actually 00:28:57.350 --> 00:28:57.360 align:start position:0% conditions in which no yeah actually 00:28:57.360 --> 00:28:59.810 align:start position:0% conditions in which no yeah actually that's<00:28:57.779> a<00:28:58.020> good<00:28:58.200> point<00:28:58.320> so<00:28:58.500> so<00:28:58.740> the<00:28:59.039> the<00:28:59.159> zero 00:28:59.810 --> 00:28:59.820 align:start position:0% that's a good point so so the the zero 00:28:59.820 --> 00:29:03.110 align:start position:0% that's a good point so so the the zero uh<00:29:00.240> is<00:29:00.480> in<00:29:00.659> the<00:29:00.900> traffic<00:29:01.440> example<00:29:01.980> in<00:29:02.640> the<00:29:02.760> amm 00:29:03.110 --> 00:29:03.120 align:start position:0% uh is in the traffic example in the amm 00:29:03.120 --> 00:29:04.549 align:start position:0% uh is in the traffic example in the amm example<00:29:03.480> you<00:29:03.720> can<00:29:03.779> never<00:29:03.900> have<00:29:04.080> zero 00:29:04.549 --> 00:29:04.559 align:start position:0% example you can never have zero 00:29:04.559 --> 00:29:06.590 align:start position:0% example you can never have zero effectively<00:29:05.340> in<00:29:05.460> that<00:29:05.700> Edge<00:29:06.120> there's<00:29:06.419> always 00:29:06.590 --> 00:29:06.600 align:start position:0% effectively in that Edge there's always 00:29:06.600 --> 00:29:09.110 align:start position:0% effectively in that Edge there's always some<00:29:06.840> amount<00:29:07.080> of<00:29:07.200> liquidity<00:29:07.620> uh<00:29:08.580> price<00:29:08.760> impact 00:29:09.110 --> 00:29:09.120 align:start position:0% some amount of liquidity uh price impact 00:29:09.120 --> 00:29:13.310 align:start position:0% some amount of liquidity uh price impact unless<00:29:09.840> it's<00:29:10.020> like<00:29:10.200> you<00:29:10.440> know<00:29:10.559> a<00:29:11.220> linear<00:29:11.700> amm<00:29:12.659> I 00:29:13.310 --> 00:29:13.320 align:start position:0% unless it's like you know a linear amm I 00:29:13.320 --> 00:29:15.830 align:start position:0% unless it's like you know a linear amm I I<00:29:13.440> think<00:29:13.620> the<00:29:14.039> main<00:29:14.159> thing<00:29:14.400> we<00:29:14.640> showed<00:29:15.059> is<00:29:15.539> that 00:29:15.830 --> 00:29:15.840 align:start position:0% I think the main thing we showed is that 00:29:15.840 --> 00:29:17.930 align:start position:0% I think the main thing we showed is that the<00:29:16.260> liquidity<00:29:16.679> difference<00:29:16.980> on<00:29:17.700> certain 00:29:17.930 --> 00:29:17.940 align:start position:0% the liquidity difference on certain 00:29:17.940 --> 00:29:19.909 align:start position:0% the liquidity difference on certain edges<00:29:18.360> on<00:29:18.539> that<00:29:18.659> graph<00:29:18.960> relative<00:29:19.559> to<00:29:19.740> the 00:29:19.909 --> 00:29:19.919 align:start position:0% edges on that graph relative to the 00:29:19.919 --> 00:29:22.310 align:start position:0% edges on that graph relative to the center<00:29:20.039> edge<00:29:20.279> has<00:29:20.580> to<00:29:20.700> be<00:29:20.820> large<00:29:21.059> so<00:29:21.899> it's<00:29:22.020> not 00:29:22.310 --> 00:29:22.320 align:start position:0% center edge has to be large so it's not 00:29:22.320 --> 00:29:23.930 align:start position:0% center edge has to be large so it's not necessarily<00:29:22.799> that<00:29:22.980> it's<00:29:23.159> saying<00:29:23.460> that<00:29:23.640> hey 00:29:23.930 --> 00:29:23.940 align:start position:0% necessarily that it's saying that hey 00:29:23.940 --> 00:29:25.310 align:start position:0% necessarily that it's saying that hey you're<00:29:24.179> teleporting<00:29:24.659> or<00:29:24.779> it's<00:29:24.960> like<00:29:25.080> you're 00:29:25.310 --> 00:29:25.320 align:start position:0% you're teleporting or it's like you're 00:29:25.320 --> 00:29:26.889 align:start position:0% you're teleporting or it's like you're you're<00:29:25.559> you<00:29:25.860> have<00:29:25.980> some<00:29:26.220> sort<00:29:26.340> of<00:29:26.460> like 00:29:26.889 --> 00:29:26.899 align:start position:0% you're you have some sort of like 00:29:26.899 --> 00:29:29.210 align:start position:0% you're you have some sort of like non-balanced<00:29:27.899> budget<00:29:28.200> Condition<00:29:28.440> it's 00:29:29.210 --> 00:29:29.220 align:start position:0% non-balanced budget Condition it's 00:29:29.220 --> 00:29:30.529 align:start position:0% non-balanced budget Condition it's actually<00:29:29.399> just<00:29:29.760> that<00:29:29.940> the<00:29:30.120> liquidity 00:29:30.529 --> 00:29:30.539 align:start position:0% actually just that the liquidity 00:29:30.539 --> 00:29:32.269 align:start position:0% actually just that the liquidity relative<00:29:31.200> liquidity<00:29:31.679> differences<00:29:32.100> on 00:29:32.269 --> 00:29:32.279 align:start position:0% relative liquidity differences on 00:29:32.279 --> 00:29:34.250 align:start position:0% relative liquidity differences on different<00:29:32.460> edges<00:29:32.820> has<00:29:33.000> to<00:29:33.120> be<00:29:33.179> high<00:29:33.360> and<00:29:34.080> that 00:29:34.250 --> 00:29:34.260 align:start position:0% different edges has to be high and that 00:29:34.260 --> 00:29:36.230 align:start position:0% different edges has to be high and that those<00:29:34.440> are<00:29:34.620> the<00:29:34.740> conditions<00:29:35.220> and 00:29:36.230 --> 00:29:36.240 align:start position:0% those are the conditions and 00:29:36.240 --> 00:29:38.690 align:start position:0% those are the conditions and you<00:29:36.779> know<00:29:36.899> I'd<00:29:37.140> say<00:29:37.320> our<00:29:37.620> proof<00:29:38.279> is<00:29:38.399> pretty 00:29:38.690 --> 00:29:38.700 align:start position:0% you know I'd say our proof is pretty 00:29:38.700 --> 00:29:41.570 align:start position:0% you know I'd say our proof is pretty pessimistic<00:29:39.480> in<00:29:40.020> our<00:29:40.260> conditions<00:29:40.740> and<00:29:41.220> there 00:29:41.570 --> 00:29:41.580 align:start position:0% pessimistic in our conditions and there 00:29:41.580 --> 00:29:43.490 align:start position:0% pessimistic in our conditions and there definitely<00:29:41.820> were<00:29:42.000> ways<00:29:42.299> of<00:29:42.419> like<00:29:42.539> getting 00:29:43.490 --> 00:29:43.500 align:start position:0% definitely were ways of like getting 00:29:43.500 --> 00:29:46.549 align:start position:0% definitely were ways of like getting much<00:29:43.980> better<00:29:44.100> bounds<00:29:44.580> on<00:29:44.700> it<00:29:45.299> um<00:29:45.840> yeah<00:29:46.260> awesome 00:29:46.549 --> 00:29:46.559 align:start position:0% much better bounds on it um yeah awesome 00:29:46.559 --> 00:29:48.409 align:start position:0% much better bounds on it um yeah awesome thank<00:29:47.220> you<00:29:47.340> so<00:29:47.460> much<00:29:47.640> please<00:29:48.000> give<00:29:48.179> a<00:29:48.299> big 00:29:48.409 --> 00:29:48.419 align:start position:0% thank you so much please give a big 00:29:48.419 --> 00:29:49.890 align:start position:0% thank you so much please give a big round<00:29:48.539> of<00:29:48.659> applause<00:29:48.960> for<00:29:49.080> tarun 00:29:49.890 --> 00:29:49.900 align:start position:0% round of applause for tarun 00:29:49.900 --> 00:29:54.589 align:start position:0% round of applause for tarun [Applause]