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 --> 00:00:14.589 align:start position:0% [Music] 00:00:14.589 --> 00:00:14.599 align:start position:0% 00:00:14.599 --> 00:00:17.150 align:start position:0% my<00:00:15.599> name<00:00:15.719> is<00:00:15.780> Felix<00:00:16.199> I'm<00:00:16.560> working<00:00:16.800> with<00:00:16.980> an 00:00:17.150 --> 00:00:17.160 align:start position:0% my name is Felix I'm working with an 00:00:17.160 --> 00:00:19.790 align:start position:0% my name is Felix I'm working with an awesome<00:00:17.279> team<00:00:17.580> of<00:00:17.760> people<00:00:17.880> at<00:00:18.300> cow<00:00:18.600> Swap<00:00:19.020> and<00:00:19.560> I 00:00:19.790 --> 00:00:19.800 align:start position:0% awesome team of people at cow Swap and I 00:00:19.800 --> 00:00:21.529 align:start position:0% awesome team of people at cow Swap and I want<00:00:19.920> to<00:00:20.039> talk<00:00:20.160> to<00:00:20.279> you<00:00:20.340> today<00:00:20.520> about<00:00:20.820> how<00:00:21.359> we 00:00:21.529 --> 00:00:21.539 align:start position:0% want to talk to you today about how we 00:00:21.539 --> 00:00:25.189 align:start position:0% want to talk to you today about how we can<00:00:21.720> design<00:00:22.880> fera<00:00:23.880> trading<00:00:24.300> mechanisms<00:00:24.840> for 00:00:25.189 --> 00:00:25.199 align:start position:0% can design fera trading mechanisms for 00:00:25.199 --> 00:00:28.330 align:start position:0% can design fera trading mechanisms for ethereum<00:00:26.220> and<00:00:26.580> I<00:00:26.699> want<00:00:26.820> to<00:00:26.939> frame<00:00:27.180> this<00:00:27.480> Vision 00:00:28.330 --> 00:00:28.340 align:start position:0% ethereum and I want to frame this Vision 00:00:28.340 --> 00:00:31.669 align:start position:0% ethereum and I want to frame this Vision based<00:00:29.340> upon<00:00:29.640> an<00:00:30.359> idea<00:00:30.660> of<00:00:30.960> just<00:00:31.140> having<00:00:31.380> a 00:00:31.669 --> 00:00:31.679 align:start position:0% based upon an idea of just having a 00:00:31.679 --> 00:00:35.270 align:start position:0% based upon an idea of just having a single<00:00:32.040> price<00:00:32.279> per<00:00:33.120> token<00:00:33.600> per<00:00:34.140> block<00:00:34.440> and 00:00:35.270 --> 00:00:35.280 align:start position:0% single price per token per block and 00:00:35.280 --> 00:00:36.590 align:start position:0% single price per token per block and we'll<00:00:35.399> explore<00:00:35.760> a<00:00:35.880> little<00:00:35.940> bit<00:00:36.120> of<00:00:36.239> why<00:00:36.420> we 00:00:36.590 --> 00:00:36.600 align:start position:0% we'll explore a little bit of why we 00:00:36.600 --> 00:00:38.389 align:start position:0% we'll explore a little bit of why we think<00:00:36.719> this<00:00:37.020> is<00:00:37.260> the<00:00:37.739> most<00:00:37.800> Fair<00:00:38.040> Way<00:00:38.219> of 00:00:38.389 --> 00:00:38.399 align:start position:0% think this is the most Fair Way of 00:00:38.399 --> 00:00:40.010 align:start position:0% think this is the most Fair Way of trading<00:00:38.700> on<00:00:38.760> ethereum 00:00:40.010 --> 00:00:40.020 align:start position:0% trading on ethereum 00:00:40.020 --> 00:00:41.810 align:start position:0% trading on ethereum the<00:00:40.500> reason<00:00:40.680> why<00:00:40.860> we're<00:00:41.040> talking<00:00:41.280> about<00:00:41.460> this 00:00:41.810 --> 00:00:41.820 align:start position:0% the reason why we're talking about this 00:00:41.820 --> 00:00:45.950 align:start position:0% the reason why we're talking about this is<00:00:42.899> if<00:00:43.379> we<00:00:43.559> look<00:00:43.680> at<00:00:43.920> a<00:00:44.579> main<00:00:44.879> adoption<00:00:45.600> of 00:00:45.950 --> 00:00:45.960 align:start position:0% is if we look at a main adoption of 00:00:45.960 --> 00:00:47.569 align:start position:0% is if we look at a main adoption of decentralized<00:00:46.559> trading<00:00:46.980> we<00:00:47.100> can<00:00:47.219> see<00:00:47.340> we've 00:00:47.569 --> 00:00:47.579 align:start position:0% decentralized trading we can see we've 00:00:47.579 --> 00:00:49.130 align:start position:0% decentralized trading we can see we've made<00:00:47.700> some<00:00:48.000> progress<00:00:48.300> in<00:00:48.539> the<00:00:48.719> last<00:00:48.840> couple<00:00:49.020> of 00:00:49.130 --> 00:00:49.140 align:start position:0% made some progress in the last couple of 00:00:49.140 --> 00:00:51.410 align:start position:0% made some progress in the last couple of years<00:00:49.379> but<00:00:49.860> we<00:00:50.039> are<00:00:50.219> just<00:00:50.520> seeing<00:00:50.940> the<00:00:51.120> tip<00:00:51.300> of 00:00:51.410 --> 00:00:51.420 align:start position:0% years but we are just seeing the tip of 00:00:51.420 --> 00:00:53.630 align:start position:0% years but we are just seeing the tip of the<00:00:51.539> iceberg<00:00:51.840> here<00:00:52.140> even<00:00:52.800> digital<00:00:53.280> asset 00:00:53.630 --> 00:00:53.640 align:start position:0% the iceberg here even digital asset 00:00:53.640 --> 00:00:55.910 align:start position:0% the iceberg here even digital asset trading<00:00:54.059> as<00:00:54.180> a<00:00:54.360> whole<00:00:54.480> including<00:00:55.379> centralized 00:00:55.910 --> 00:00:55.920 align:start position:0% trading as a whole including centralized 00:00:55.920 --> 00:00:58.910 align:start position:0% trading as a whole including centralized exchanges<00:00:56.460> is<00:00:57.300> many<00:00:57.600> times<00:00:57.840> larger<00:00:58.320> than<00:00:58.559> Dex 00:00:58.910 --> 00:00:58.920 align:start position:0% exchanges is many times larger than Dex 00:00:58.920 --> 00:01:01.069 align:start position:0% exchanges is many times larger than Dex trading<00:00:59.280> today<00:00:59.460> and<00:01:00.300> when<00:01:00.480> we<00:01:00.660> want<00:01:00.840> to<00:01:00.960> get 00:01:01.069 --> 00:01:01.079 align:start position:0% trading today and when we want to get 00:01:01.079 --> 00:01:02.630 align:start position:0% trading today and when we want to get into<00:01:01.199> more<00:01:01.440> interesting<00:01:01.860> markets<00:01:02.219> like<00:01:02.460> the 00:01:02.630 --> 00:01:02.640 align:start position:0% into more interesting markets like the 00:01:02.640 --> 00:01:04.969 align:start position:0% into more interesting markets like the U.S<00:01:02.940> Securities<00:01:03.420> Market<00:01:03.719> or<00:01:04.320> maybe<00:01:04.500> the<00:01:04.739> Holy 00:01:04.969 --> 00:01:04.979 align:start position:0% U.S Securities Market or maybe the Holy 00:01:04.979 --> 00:01:06.590 align:start position:0% U.S Securities Market or maybe the Holy Grail<00:01:05.220> of<00:01:05.339> trading<00:01:05.640> Global<00:01:06.000> foreign<00:01:06.299> exchange 00:01:06.590 --> 00:01:06.600 align:start position:0% Grail of trading Global foreign exchange 00:01:06.600 --> 00:01:08.870 align:start position:0% Grail of trading Global foreign exchange trading<00:01:07.080> then<00:01:07.860> we<00:01:08.100> really<00:01:08.220> need<00:01:08.400> to<00:01:08.580> step<00:01:08.760> up 00:01:08.870 --> 00:01:08.880 align:start position:0% trading then we really need to step up 00:01:08.880 --> 00:01:11.330 align:start position:0% trading then we really need to step up our<00:01:09.119> game<00:01:09.780> and<00:01:10.320> I<00:01:10.500> think<00:01:10.619> personally<00:01:11.040> that 00:01:11.330 --> 00:01:11.340 align:start position:0% our game and I think personally that 00:01:11.340 --> 00:01:13.910 align:start position:0% our game and I think personally that ethereum<00:01:11.939> has<00:01:12.299> as<00:01:12.659> this<00:01:13.080> credible<00:01:13.500> neutral 00:01:13.910 --> 00:01:13.920 align:start position:0% ethereum has as this credible neutral 00:01:13.920 --> 00:01:16.190 align:start position:0% ethereum has as this credible neutral settlement<00:01:14.280> layer<00:01:14.640> the<00:01:15.000> potential<00:01:15.479> of 00:01:16.190 --> 00:01:16.200 align:start position:0% settlement layer the potential of 00:01:16.200 --> 00:01:20.030 align:start position:0% settlement layer the potential of enabled<00:01:16.860> trading<00:01:17.400> of<00:01:17.820> all<00:01:18.360> different<00:01:19.040> parties 00:01:20.030 --> 00:01:20.040 align:start position:0% enabled trading of all different parties 00:01:20.040 --> 00:01:22.550 align:start position:0% enabled trading of all different parties in<00:01:20.580> across<00:01:21.060> Nations<00:01:21.360> supernational<00:01:22.080> actors 00:01:22.550 --> 00:01:22.560 align:start position:0% in across Nations supernational actors 00:01:22.560 --> 00:01:24.289 align:start position:0% in across Nations supernational actors so<00:01:23.100> I<00:01:23.220> really<00:01:23.340> think<00:01:23.520> this<00:01:23.759> Global<00:01:24.060> foreign 00:01:24.289 --> 00:01:24.299 align:start position:0% so I really think this Global foreign 00:01:24.299 --> 00:01:26.330 align:start position:0% so I really think this Global foreign exchange<00:01:24.540> trading<00:01:24.960> is<00:01:25.259> a<00:01:25.740> goal<00:01:25.979> that<00:01:26.100> we<00:01:26.220> can 00:01:26.330 --> 00:01:26.340 align:start position:0% exchange trading is a goal that we can 00:01:26.340 --> 00:01:27.410 align:start position:0% exchange trading is a goal that we can strive<00:01:26.580> for 00:01:27.410 --> 00:01:27.420 align:start position:0% strive for 00:01:27.420 --> 00:01:29.390 align:start position:0% strive for so<00:01:27.659> to<00:01:27.960> talk<00:01:28.080> about<00:01:28.200> how<00:01:28.500> we<00:01:28.619> get<00:01:28.799> there<00:01:28.920> let's 00:01:29.390 --> 00:01:29.400 align:start position:0% so to talk about how we get there let's 00:01:29.400 --> 00:01:31.310 align:start position:0% so to talk about how we get there let's first<00:01:29.580> revisit<00:01:30.119> a<00:01:30.299> little<00:01:30.420> bit<00:01:30.540> the<00:01:30.960> brief 00:01:31.310 --> 00:01:31.320 align:start position:0% first revisit a little bit the brief 00:01:31.320 --> 00:01:34.010 align:start position:0% first revisit a little bit the brief history<00:01:31.740> honestly<00:01:32.640> that<00:01:32.820> we<00:01:33.000> had 00:01:34.010 --> 00:01:34.020 align:start position:0% history honestly that we had 00:01:34.020 --> 00:01:35.569 align:start position:0% history honestly that we had um<00:01:34.080> in<00:01:34.439> the<00:01:34.619> in<00:01:34.979> the<00:01:35.159> context<00:01:35.400> of 00:01:35.569 --> 00:01:35.579 align:start position:0% um in the in the context of 00:01:35.579 --> 00:01:37.370 align:start position:0% um in the in the context of decentralized<00:01:36.060> exchange<00:01:36.420> Trading 00:01:37.370 --> 00:01:37.380 align:start position:0% decentralized exchange Trading 00:01:37.380 --> 00:01:40.130 align:start position:0% decentralized exchange Trading and<00:01:37.860> I<00:01:37.979> want<00:01:38.040> to<00:01:38.220> frame<00:01:38.460> this<00:01:38.759> history<00:01:39.140> based 00:01:40.130 --> 00:01:40.140 align:start position:0% and I want to frame this history based 00:01:40.140 --> 00:01:42.950 align:start position:0% and I want to frame this history based upon<00:01:40.380> an<00:01:40.560> article<00:01:40.860> from<00:01:41.159> Alvin<00:01:41.520> Roth<00:01:41.880> who<00:01:42.299> is 00:01:42.950 --> 00:01:42.960 align:start position:0% upon an article from Alvin Roth who is 00:01:42.960 --> 00:01:44.630 align:start position:0% upon an article from Alvin Roth who is an<00:01:43.140> expert<00:01:43.380> on<00:01:43.500> Market<00:01:43.680> design<00:01:43.920> and<00:01:44.280> won<00:01:44.460> a 00:01:44.630 --> 00:01:44.640 align:start position:0% an expert on Market design and won a 00:01:44.640 --> 00:01:47.749 align:start position:0% an expert on Market design and won a Nobel<00:01:45.000> prize<00:01:45.240> in<00:01:45.420> economics<00:01:46.020> a<00:01:46.680> while<00:01:46.799> ago<00:01:47.159> who 00:01:47.749 --> 00:01:47.759 align:start position:0% Nobel prize in economics a while ago who 00:01:47.759 --> 00:01:50.690 align:start position:0% Nobel prize in economics a while ago who wrote<00:01:48.000> this<00:01:48.299> essay<00:01:49.079> on<00:01:49.700> necessary 00:01:50.690 --> 00:01:50.700 align:start position:0% wrote this essay on necessary 00:01:50.700 --> 00:01:53.389 align:start position:0% wrote this essay on necessary requirements<00:01:51.540> for<00:01:51.840> a<00:01:52.020> market<00:01:52.140> to<00:01:52.619> function<00:01:52.920> in 00:01:53.389 --> 00:01:53.399 align:start position:0% requirements for a market to function in 00:01:53.399 --> 00:01:55.670 align:start position:0% requirements for a market to function in Harvard<00:01:53.640> Business<00:01:53.820> Review<00:01:54.060> a<00:01:54.299> while<00:01:54.420> ago<00:01:55.079> and 00:01:55.670 --> 00:01:55.680 align:start position:0% Harvard Business Review a while ago and 00:01:55.680 --> 00:01:57.649 align:start position:0% Harvard Business Review a while ago and he<00:01:56.040> mentions<00:01:56.520> three<00:01:56.820> properties<00:01:57.240> that<00:01:57.540> a 00:01:57.649 --> 00:01:57.659 align:start position:0% he mentions three properties that a 00:01:57.659 --> 00:01:59.929 align:start position:0% he mentions three properties that a market<00:01:57.840> needs<00:01:58.200> to<00:01:58.259> at<00:01:58.560> least<00:01:58.680> fulfill<00:01:59.220> in 00:01:59.929 --> 00:01:59.939 align:start position:0% market needs to at least fulfill in 00:01:59.939 --> 00:02:01.490 align:start position:0% market needs to at least fulfill in order<00:02:00.060> to<00:02:00.180> function<00:02:00.479> properly 00:02:01.490 --> 00:02:01.500 align:start position:0% order to function properly 00:02:01.500 --> 00:02:03.469 align:start position:0% order to function properly the<00:02:01.979> first<00:02:02.100> one<00:02:02.220> is<00:02:02.460> a<00:02:02.820> good<00:02:02.880> Market<00:02:03.060> needs<00:02:03.479> to 00:02:03.469 --> 00:02:03.479 align:start position:0% the first one is a good Market needs to 00:02:03.479 --> 00:02:05.569 align:start position:0% the first one is a good Market needs to be<00:02:03.600> thick<00:02:03.799> thickness<00:02:04.799> just<00:02:05.100> meaning<00:02:05.280> that 00:02:05.569 --> 00:02:05.579 align:start position:0% be thick thickness just meaning that 00:02:05.579 --> 00:02:07.069 align:start position:0% be thick thickness just meaning that there<00:02:05.700> is<00:02:05.820> enough<00:02:05.880> liquidity<00:02:06.479> that<00:02:06.780> when<00:02:06.899> a 00:02:07.069 --> 00:02:07.079 align:start position:0% there is enough liquidity that when a 00:02:07.079 --> 00:02:08.749 align:start position:0% there is enough liquidity that when a buyer<00:02:07.320> and<00:02:07.439> a<00:02:07.560> seller<00:02:07.799> come<00:02:07.979> or<00:02:08.280> even<00:02:08.399> just<00:02:08.580> one 00:02:08.749 --> 00:02:08.759 align:start position:0% buyer and a seller come or even just one 00:02:08.759 --> 00:02:12.110 align:start position:0% buyer and a seller come or even just one side<00:02:08.940> of<00:02:09.060> them<00:02:09.239> they<00:02:09.720> can<00:02:09.959> actually<00:02:10.200> interact 00:02:12.110 --> 00:02:12.120 align:start position:0% side of them they can actually interact 00:02:12.120 --> 00:02:14.089 align:start position:0% side of them they can actually interact the<00:02:12.599> second<00:02:12.720> point<00:02:13.080> that<00:02:13.500> I<00:02:13.680> will<00:02:13.739> put<00:02:13.920> a<00:02:14.040> lot 00:02:14.089 --> 00:02:14.099 align:start position:0% the second point that I will put a lot 00:02:14.099 --> 00:02:17.089 align:start position:0% the second point that I will put a lot of<00:02:14.220> focus<00:02:14.459> on<00:02:14.580> is<00:02:15.420> what<00:02:15.780> Alvin<00:02:16.080> calls<00:02:16.500> safety 00:02:17.089 --> 00:02:17.099 align:start position:0% of focus on is what Alvin calls safety 00:02:17.099 --> 00:02:19.790 align:start position:0% of focus on is what Alvin calls safety and<00:02:17.640> by<00:02:17.879> safety<00:02:18.239> he<00:02:18.420> means<00:02:18.720> the<00:02:19.140> market<00:02:19.319> has<00:02:19.620> to 00:02:19.790 --> 00:02:19.800 align:start position:0% and by safety he means the market has to 00:02:19.800 --> 00:02:22.490 align:start position:0% and by safety he means the market has to incentivize<00:02:20.400> its<00:02:20.760> participants<00:02:21.500> to 00:02:22.490 --> 00:02:22.500 align:start position:0% incentivize its participants to 00:02:22.500 --> 00:02:25.850 align:start position:0% incentivize its participants to truthfully<00:02:23.340> reveal<00:02:23.940> their<00:02:24.780> preferences<00:02:25.319> they 00:02:25.850 --> 00:02:25.860 align:start position:0% truthfully reveal their preferences they 00:02:25.860 --> 00:02:27.290 align:start position:0% truthfully reveal their preferences they shouldn't<00:02:26.160> be<00:02:26.220> holding<00:02:26.520> behind<00:02:26.819> the<00:02:26.940> bush<00:02:27.060> and 00:02:27.290 --> 00:02:27.300 align:start position:0% shouldn't be holding behind the bush and 00:02:27.300 --> 00:02:29.449 align:start position:0% shouldn't be holding behind the bush and haggling<00:02:27.660> and<00:02:27.900> kind<00:02:28.080> of<00:02:28.200> hiding<00:02:28.920> their<00:02:29.160> their 00:02:29.449 --> 00:02:29.459 align:start position:0% haggling and kind of hiding their their 00:02:29.459 --> 00:02:31.010 align:start position:0% haggling and kind of hiding their their their<00:02:29.520> true<00:02:30.060> Revelation<00:02:30.540> their<00:02:30.840> true 00:02:31.010 --> 00:02:31.020 align:start position:0% their true Revelation their true 00:02:31.020 --> 00:02:33.530 align:start position:0% their true Revelation their true preferences<00:02:31.800> but<00:02:32.400> instead<00:02:32.700> be<00:02:32.879> incentivized 00:02:33.530 --> 00:02:33.540 align:start position:0% preferences but instead be incentivized 00:02:33.540 --> 00:02:36.110 align:start position:0% preferences but instead be incentivized to<00:02:33.599> commit<00:02:33.959> them<00:02:34.140> kind<00:02:34.980> of<00:02:35.099> openly 00:02:36.110 --> 00:02:36.120 align:start position:0% to commit them kind of openly 00:02:36.120 --> 00:02:38.570 align:start position:0% to commit them kind of openly and<00:02:36.599> then<00:02:36.720> the<00:02:36.959> last<00:02:37.080> Point<00:02:37.379> touches<00:02:38.280> more<00:02:38.459> on 00:02:38.570 --> 00:02:38.580 align:start position:0% and then the last Point touches more on 00:02:38.580 --> 00:02:40.369 align:start position:0% and then the last Point touches more on the<00:02:38.640> scalability<00:02:39.120> aspect<00:02:39.540> which<00:02:39.840> I<00:02:40.080> will<00:02:40.200> not 00:02:40.369 --> 00:02:40.379 align:start position:0% the scalability aspect which I will not 00:02:40.379 --> 00:02:42.589 align:start position:0% the scalability aspect which I will not go<00:02:40.500> into<00:02:40.620> much<00:02:40.920> detail<00:02:41.220> here<00:02:41.459> because<00:02:41.760> we<00:02:42.480> know 00:02:42.589 --> 00:02:42.599 align:start position:0% go into much detail here because we know 00:02:42.599 --> 00:02:44.089 align:start position:0% go into much detail here because we know as<00:02:42.780> ethereum<00:02:43.200> as<00:02:43.319> a<00:02:43.440> whole<00:02:43.560> is<00:02:43.680> focused<00:02:43.980> on 00:02:44.089 --> 00:02:44.099 align:start position:0% as ethereum as a whole is focused on 00:02:44.099 --> 00:02:45.949 align:start position:0% as ethereum as a whole is focused on getting<00:02:44.220> scalability<00:02:44.760> done<00:02:45.060> and<00:02:45.300> we<00:02:45.720> have<00:02:45.840> all 00:02:45.949 --> 00:02:45.959 align:start position:0% getting scalability done and we have all 00:02:45.959 --> 00:02:47.150 align:start position:0% getting scalability done and we have all these<00:02:46.140> great<00:02:46.260> talks<00:02:46.620> at<00:02:46.680> this<00:02:46.860> conference 00:02:47.150 --> 00:02:47.160 align:start position:0% these great talks at this conference 00:02:47.160 --> 00:02:50.630 align:start position:0% these great talks at this conference about<00:02:47.459> ZK<00:02:48.239> VMS<00:02:48.840> sharding<00:02:49.440> and<00:02:49.920> so<00:02:50.040> the<00:02:50.280> hope<00:02:50.459> is 00:02:50.630 --> 00:02:50.640 align:start position:0% about ZK VMS sharding and so the hope is 00:02:50.640 --> 00:02:53.089 align:start position:0% about ZK VMS sharding and so the hope is that<00:02:51.000> with<00:02:51.239> ethereum<00:02:51.780> figuring<00:02:52.500> out<00:02:52.620> scaling 00:02:53.089 --> 00:02:53.099 align:start position:0% that with ethereum figuring out scaling 00:02:53.099 --> 00:02:55.309 align:start position:0% that with ethereum figuring out scaling we<00:02:53.459> can<00:02:53.640> basically<00:02:54.480> piggyback<00:02:55.019> on<00:02:55.140> that 00:02:55.309 --> 00:02:55.319 align:start position:0% we can basically piggyback on that 00:02:55.319 --> 00:02:58.250 align:start position:0% we can basically piggyback on that scaling<00:02:55.739> for<00:02:56.640> Dex<00:02:56.940> trading<00:02:57.300> as<00:02:57.420> well<00:02:57.540> and<00:02:58.140> so 00:02:58.250 --> 00:02:58.260 align:start position:0% scaling for Dex trading as well and so 00:02:58.260 --> 00:02:59.509 align:start position:0% scaling for Dex trading as well and so if<00:02:58.440> we<00:02:58.560> if<00:02:58.739> we<00:02:58.920> look<00:02:59.040> at<00:02:59.160> how<00:02:59.400> everything 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well but they had<00:03:15.120> a<00:03:15.360> fundamental<00:03:15.959> flaw<00:03:16.379> which<00:03:16.800> was<00:03:17.099> that 00:03:17.330 --> 00:03:17.340 align:start position:0% had a fundamental flaw which was that 00:03:17.340 --> 00:03:19.190 align:start position:0% had a fundamental flaw which was that they<00:03:17.519> required<00:03:18.000> active<00:03:18.420> Market<00:03:18.900> making 00:03:19.190 --> 00:03:19.200 align:start position:0% they required active Market making 00:03:19.200 --> 00:03:22.369 align:start position:0% they required active Market making participants<00:03:20.040> to<00:03:20.700> constantly<00:03:21.180> update<00:03:21.659> the 00:03:22.369 --> 00:03:22.379 align:start position:0% participants to constantly update the 00:03:22.379 --> 00:03:24.350 align:start position:0% participants to constantly update the quotes<00:03:22.500> and<00:03:22.800> the<00:03:22.920> bids<00:03:23.220> and<00:03:23.580> basically<00:03:23.879> keep 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space it made it very difficult 00:03:30.239 --> 00:03:32.570 align:start position:0% in the space it made it very difficult to<00:03:30.780> bootstrap<00:03:31.260> markets<00:03:31.739> for<00:03:31.980> new<00:03:32.159> token 00:03:32.570 --> 00:03:32.580 align:start position:0% to bootstrap markets for new token 00:03:32.580 --> 00:03:34.970 align:start position:0% to bootstrap markets for new token participants<00:03:33.000> or<00:03:33.239> for<00:03:33.360> new<00:03:33.540> pairs<00:03:34.019> and<00:03:34.739> so 00:03:34.970 --> 00:03:34.980 align:start position:0% participants or for new pairs and so 00:03:34.980 --> 00:03:37.070 align:start position:0% participants or for new pairs and so what<00:03:35.819> the<00:03:36.000> problem<00:03:36.120> with<00:03:36.300> Entre<00:03:36.659> limit<00:03:36.840> order 00:03:37.070 --> 00:03:37.080 align:start position:0% what the problem with Entre limit order 00:03:37.080 --> 00:03:38.930 align:start position:0% what the problem with Entre limit order books<00:03:37.379> was<00:03:37.500> that<00:03:37.800> it<00:03:37.920> was<00:03:38.099> just<00:03:38.400> eventually 00:03:38.930 --> 00:03:38.940 align:start position:0% books was that it was just eventually 00:03:38.940 --> 00:03:40.670 align:start position:0% books was that it was just eventually very<00:03:39.239> hard<00:03:39.420> to<00:03:39.599> create<00:03:39.900> a<00:03:40.140> thickness<00:03:40.379> create 00:03:40.670 --> 00:03:40.680 align:start position:0% very hard to create a thickness create 00:03:40.680 --> 00:03:43.369 align:start position:0% very hard to create a thickness create thick<00:03:41.040> markets<00:03:41.519> and<00:03:42.120> this<00:03:42.299> is<00:03:42.420> where<00:03:42.720> amms 00:03:43.369 --> 00:03:43.379 align:start position:0% thick markets and this is where amms 00:03:43.379 --> 00:03:45.890 align:start position:0% thick markets and this is where amms came<00:03:43.620> along<00:03:43.819> amms<00:03:44.819> really<00:03:45.120> solved<00:03:45.659> the 00:03:45.890 --> 00:03:45.900 align:start position:0% came along amms really solved the 00:03:45.900 --> 00:03:48.170 align:start position:0% came along amms really solved the problem<00:03:46.140> of<00:03:46.620> liquidity<00:03:47.099> provision<00:03:47.580> and 00:03:48.170 --> 00:03:48.180 align:start position:0% problem of liquidity provision and 00:03:48.180 --> 00:03:50.390 align:start position:0% problem of liquidity provision and allowed<00:03:48.599> every<00:03:49.019> one<00:03:49.319> of<00:03:49.440> us<00:03:49.620> to<00:03:50.040> become<00:03:50.220> a 00:03:50.390 --> 00:03:50.400 align:start position:0% allowed every one of us to become a 00:03:50.400 --> 00:03:52.670 align:start position:0% allowed every one of us to become a liquidity<00:03:50.760> provider<00:03:51.239> just<00:03:51.599> by<00:03:51.840> staking<00:03:52.260> two 00:03:52.670 --> 00:03:52.680 align:start position:0% liquidity provider just by staking two 00:03:52.680 --> 00:03:55.130 align:start position:0% liquidity provider just by staking two assets<00:03:53.099> into<00:03:53.580> a<00:03:53.819> smart<00:03:54.000> contract<00:03:54.420> that<00:03:54.959> would 00:03:55.130 --> 00:03:55.140 align:start position:0% assets into a smart contract that would 00:03:55.140 --> 00:03:56.630 align:start position:0% assets into a smart contract that would then<00:03:55.319> automatically<00:03:55.920> sell<00:03:56.099> them<00:03:56.280> on<00:03:56.519> our 00:03:56.630 --> 00:03:56.640 align:start position:0% then automatically sell them on our 00:03:56.640 --> 00:03:59.089 align:start position:0% then automatically sell them on our behalf<00:03:57.060> based<00:03:57.840> on<00:03:57.959> some 00:03:59.089 --> 00:03:59.099 align:start position:0% behalf based on some 00:03:59.099 --> 00:04:00.710 align:start position:0% behalf based on some um<00:03:59.159> based<00:03:59.760> on<00:03:59.760> some<00:03:59.940> curve<00:04:00.239> based<00:04:00.599> on<00:04:00.659> some 00:04:00.710 --> 00:04:00.720 align:start position:0% um based on some curve based on some 00:04:00.720 --> 00:04:02.869 align:start position:0% um based on some curve based on some preference<00:04:01.140> curve<00:04:01.500> and<00:04:02.099> all<00:04:02.220> of<00:04:02.340> this<00:04:02.519> started 00:04:02.869 --> 00:04:02.879 align:start position:0% preference curve and all of this started 00:04:02.879 --> 00:04:04.610 align:start position:0% preference curve and all of this started in<00:04:03.239> the<00:04:03.360> context<00:04:03.540> of<00:04:03.720> prediction<00:04:04.019> markets<00:04:04.440> way 00:04:04.610 --> 00:04:04.620 align:start position:0% in the context of prediction markets way 00:04:04.620 --> 00:04:06.410 align:start position:0% in the context of prediction markets way before<00:04:04.879> blockchains<00:04:05.879> were<00:04:06.000> born<00:04:06.120> Robin 00:04:06.410 --> 00:04:06.420 align:start position:0% before blockchains were born Robin 00:04:06.420 --> 00:04:08.930 align:start position:0% before blockchains were born Robin Hansen<00:04:06.900> had<00:04:07.200> a<00:04:07.260> paper<00:04:07.379> on<00:04:07.980> logarithmic 00:04:08.930 --> 00:04:08.940 align:start position:0% Hansen had a paper on logarithmic 00:04:08.940 --> 00:04:11.690 align:start position:0% Hansen had a paper on logarithmic basically<00:04:09.840> amms<00:04:10.500> and<00:04:10.980> then<00:04:11.099> in<00:04:11.340> the<00:04:11.400> context 00:04:11.690 --> 00:04:11.700 align:start position:0% basically amms and then in the context 00:04:11.700 --> 00:04:13.490 align:start position:0% basically amms and then in the context of<00:04:11.819> ethereum<00:04:12.239> we<00:04:12.480> had<00:04:12.599> many<00:04:12.780> different<00:04:13.019> teams 00:04:13.490 --> 00:04:13.500 align:start position:0% of ethereum we had many different teams 00:04:13.500 --> 00:04:16.270 align:start position:0% of ethereum we had many different teams pioneering<00:04:14.120> more<00:04:15.120> or<00:04:15.239> less<00:04:15.299> complex 00:04:16.270 --> 00:04:16.280 align:start position:0% pioneering more or less complex 00:04:16.280 --> 00:04:18.349 align:start position:0% pioneering more or less complex functions<00:04:17.280> everyone<00:04:17.519> of<00:04:17.880> course<00:04:17.940> Knows<00:04:18.239> X 00:04:18.349 --> 00:04:18.359 align:start position:0% functions everyone of course Knows X 00:04:18.359 --> 00:04:21.170 align:start position:0% functions everyone of course Knows X times<00:04:18.540> y<00:04:18.720> equals<00:04:19.079> K<00:04:19.260> but<00:04:20.100> really<00:04:20.280> the<00:04:20.579> the<00:04:20.820> key 00:04:21.170 --> 00:04:21.180 align:start position:0% times y equals K but really the the key 00:04:21.180 --> 00:04:23.330 align:start position:0% times y equals K but really the the key thing<00:04:21.840> that<00:04:22.139> amm's<00:04:22.680> brought<00:04:22.919> to<00:04:23.040> the<00:04:23.160> space 00:04:23.330 --> 00:04:23.340 align:start position:0% thing that amm's brought to the space 00:04:23.340 --> 00:04:26.330 align:start position:0% thing that amm's brought to the space was<00:04:23.960> overcoming<00:04:24.960> the<00:04:25.340> liquidity 00:04:26.330 --> 00:04:26.340 align:start position:0% was overcoming the liquidity 00:04:26.340 --> 00:04:28.370 align:start position:0% was overcoming the liquidity bootstrapping<00:04:27.060> problem<00:04:27.240> and<00:04:27.720> creating<00:04:28.020> thick 00:04:28.370 --> 00:04:28.380 align:start position:0% bootstrapping problem and creating thick 00:04:28.380 --> 00:04:31.189 align:start position:0% bootstrapping problem and creating thick markets<00:04:28.919> even<00:04:29.460> for<00:04:29.759> long<00:04:29.940> tail<00:04:30.180> tokens<00:04:30.600> so 00:04:31.189 --> 00:04:31.199 align:start position:0% markets even for long tail tokens so 00:04:31.199 --> 00:04:33.230 align:start position:0% markets even for long tail tokens so what's<00:04:31.320> the<00:04:31.560> problem<00:04:31.740> with<00:04:31.979> amms<00:04:32.580> the<00:04:33.120> problem 00:04:33.230 --> 00:04:33.240 align:start position:0% what's the problem with amms the problem 00:04:33.240 --> 00:04:35.030 align:start position:0% what's the problem with amms the problem with<00:04:33.479> amms<00:04:34.020> and<00:04:34.199> again<00:04:34.380> we<00:04:34.560> have<00:04:34.680> heard<00:04:34.800> many 00:04:35.030 --> 00:04:35.040 align:start position:0% with amms and again we have heard many 00:04:35.040 --> 00:04:37.370 align:start position:0% with amms and again we have heard many talks<00:04:35.400> about<00:04:35.520> this<00:04:35.820> at<00:04:36.060> this<00:04:36.479> conference 00:04:37.370 --> 00:04:37.380 align:start position:0% talks about this at this conference 00:04:37.380 --> 00:04:39.590 align:start position:0% talks about this at this conference is<00:04:37.860> Mev<00:04:38.340> or<00:04:38.520> how<00:04:38.699> I<00:04:38.880> would<00:04:39.000> call<00:04:39.120> it<00:04:39.300> in<00:04:39.419> this 00:04:39.590 --> 00:04:39.600 align:start position:0% is Mev or how I would call it in this 00:04:39.600 --> 00:04:42.170 align:start position:0% is Mev or how I would call it in this presentation<00:04:40.080> pay<00:04:40.500> as<00:04:40.680> bit<00:04:40.919> pricing<00:04:41.340> and<00:04:42.000> pay 00:04:42.170 --> 00:04:42.180 align:start position:0% presentation pay as bit pricing and pay 00:04:42.180 --> 00:04:44.990 align:start position:0% presentation pay as bit pricing and pay as<00:04:42.360> bit<00:04:42.600> pricing<00:04:42.960> comes<00:04:43.860> from<00:04:43.979> the<00:04:44.520> fact<00:04:44.699> that 00:04:44.990 --> 00:04:45.000 align:start position:0% as bit pricing comes from the fact that 00:04:45.000 --> 00:04:47.150 align:start position:0% as bit pricing comes from the fact that what<00:04:45.479> you're<00:04:45.600> seeing<00:04:45.960> on<00:04:46.199> for<00:04:46.560> example<00:04:46.740> uni 00:04:47.150 --> 00:04:47.160 align:start position:0% what you're seeing on for example uni 00:04:47.160 --> 00:04:49.010 align:start position:0% what you're seeing on for example uni swap<00:04:47.340> if<00:04:47.520> you're<00:04:47.639> trading<00:04:47.940> some<00:04:48.060> tokens<00:04:48.419> is 00:04:49.010 --> 00:04:49.020 align:start position:0% swap if you're trading some tokens is 00:04:49.020 --> 00:04:51.469 align:start position:0% swap if you're trading some tokens is not<00:04:49.199> actually<00:04:49.500> what<00:04:50.220> you<00:04:50.580> are<00:04:50.759> sending<00:04:51.360> into 00:04:51.469 --> 00:04:51.479 align:start position:0% not actually what you are sending into 00:04:51.479 --> 00:04:54.290 align:start position:0% not actually what you are sending into the<00:04:51.660> mempool<00:04:52.080> to<00:04:52.500> be<00:04:52.620> executed<00:04:53.160> this<00:04:54.060> is<00:04:54.180> a 00:04:54.290 --> 00:04:54.300 align:start position:0% the mempool to be executed this is a 00:04:54.300 --> 00:04:55.610 align:start position:0% the mempool to be executed this is a trade<00:04:54.540> that<00:04:54.720> actually<00:04:54.900> happened<00:04:55.080> a<00:04:55.380> couple<00:04:55.500> of 00:04:55.610 --> 00:04:55.620 align:start position:0% trade that actually happened a couple of 00:04:55.620 --> 00:04:57.110 align:start position:0% trade that actually happened a couple of weeks<00:04:55.860> ago<00:04:56.100> somebody<00:04:56.340> was<00:04:56.639> selling<00:04:56.940> one 00:04:57.110 --> 00:04:57.120 align:start position:0% weeks ago somebody was selling one 00:04:57.120 --> 00:04:58.909 align:start position:0% weeks ago somebody was selling one million<00:04:57.419> dollars<00:04:57.660> on<00:04:57.780> uni<00:04:58.080> Swap<00:04:58.320> and<00:04:58.740> probably 00:04:58.909 --> 00:04:58.919 align:start position:0% million dollars on uni Swap and probably 00:04:58.919 --> 00:05:01.070 align:start position:0% million dollars on uni Swap and probably so<00:04:59.220> on<00:04:59.340> the<00:04:59.460> UI<00:04:59.639> that<00:04:59.820> they<00:04:59.940> would<00:05:00.060> get<00:05:00.180> 750e 00:05:01.070 --> 00:05:01.080 align:start position:0% so on the UI that they would get 750e 00:05:01.080 --> 00:05:02.990 align:start position:0% so on the UI that they would get 750e but<00:05:01.860> the<00:05:02.040> thing<00:05:02.160> that<00:05:02.400> you<00:05:02.460> need<00:05:02.580> to<00:05:02.699> add<00:05:02.820> on 00:05:02.990 --> 00:05:03.000 align:start position:0% but the thing that you need to add on 00:05:03.000 --> 00:05:05.150 align:start position:0% but the thing that you need to add on uniswap<00:05:03.540> is<00:05:03.840> a<00:05:04.199> discount<00:05:04.380> to<00:05:04.860> the<00:05:05.040> current 00:05:05.150 --> 00:05:05.160 align:start position:0% uniswap is a discount to the current 00:05:05.160 --> 00:05:06.770 align:start position:0% uniswap is a discount to the current fair<00:05:05.460> market<00:05:05.639> Price<00:05:06.000> which<00:05:06.300> is<00:05:06.360> referred<00:05:06.660> to 00:05:06.770 --> 00:05:06.780 align:start position:0% fair market Price which is referred to 00:05:06.780 --> 00:05:08.749 align:start position:0% fair market Price which is referred to as<00:05:06.960> slippage<00:05:07.380> tolerance<00:05:07.860> and<00:05:08.340> you<00:05:08.520> can<00:05:08.639> think 00:05:08.749 --> 00:05:08.759 align:start position:0% as slippage tolerance and you can think 00:05:08.759 --> 00:05:10.310 align:start position:0% as slippage tolerance and you can think about<00:05:08.880> slippage<00:05:09.419> tolerance<00:05:09.780> as<00:05:09.960> basically 00:05:10.310 --> 00:05:10.320 align:start position:0% about slippage tolerance as basically 00:05:10.320 --> 00:05:12.469 align:start position:0% about slippage tolerance as basically how<00:05:10.800> much<00:05:10.919> volatility<00:05:11.400> are<00:05:11.820> you<00:05:11.940> willing<00:05:12.240> to 00:05:12.469 --> 00:05:12.479 align:start position:0% how much volatility are you willing to 00:05:12.479 --> 00:05:14.930 align:start position:0% how much volatility are you willing to accept<00:05:12.660> in<00:05:13.560> order<00:05:13.740> for<00:05:14.160> your<00:05:14.280> trade<00:05:14.520> to<00:05:14.699> still 00:05:14.930 --> 00:05:14.940 align:start position:0% accept in order for your trade to still 00:05:14.940 --> 00:05:15.969 align:start position:0% accept in order for your trade to still go<00:05:15.120> through 00:05:15.969 --> 00:05:15.979 align:start position:0% go through 00:05:15.979 --> 00:05:18.830 align:start position:0% go through blockchains<00:05:16.979> are<00:05:17.479> asynchronous<00:05:18.479> by<00:05:18.660> Design 00:05:18.830 --> 00:05:18.840 align:start position:0% blockchains are asynchronous by Design 00:05:18.840 --> 00:05:20.510 align:start position:0% blockchains are asynchronous by Design so<00:05:19.080> there's<00:05:19.259> race<00:05:19.500> conditions<00:05:20.040> and<00:05:20.280> so<00:05:20.400> the 00:05:20.510 --> 00:05:20.520 align:start position:0% so there's race conditions and so the 00:05:20.520 --> 00:05:22.010 align:start position:0% so there's race conditions and so the moment<00:05:20.699> you<00:05:20.880> click<00:05:21.060> swap<00:05:21.360> on<00:05:21.479> uni<00:05:21.780> swap 00:05:22.010 --> 00:05:22.020 align:start position:0% moment you click swap on uni swap 00:05:22.020 --> 00:05:23.450 align:start position:0% moment you click swap on uni swap somebody<00:05:22.440> else<00:05:22.680> might<00:05:22.919> also<00:05:23.100> be<00:05:23.220> clicking 00:05:23.450 --> 00:05:23.460 align:start position:0% somebody else might also be clicking 00:05:23.460 --> 00:05:24.950 align:start position:0% somebody else might also be clicking swap<00:05:23.699> somewhere<00:05:24.060> else<00:05:24.180> and<00:05:24.479> therefore<00:05:24.720> you 00:05:24.950 --> 00:05:24.960 align:start position:0% swap somewhere else and therefore you 00:05:24.960 --> 00:05:28.129 align:start position:0% swap somewhere else and therefore you need<00:05:25.080> to<00:05:25.199> price<00:05:25.919> that<00:05:26.460> volatility<00:05:27.419> tolerance 00:05:28.129 --> 00:05:28.139 align:start position:0% need to price that volatility tolerance 00:05:28.139 --> 00:05:29.930 align:start position:0% need to price that volatility tolerance or<00:05:28.259> slippage<00:05:28.620> tolerance<00:05:29.039> in 00:05:29.930 --> 00:05:29.940 align:start position:0% or slippage tolerance in 00:05:29.940 --> 00:05:32.150 align:start position:0% or slippage tolerance in now<00:05:30.300> the<00:05:30.539> problem<00:05:30.660> with<00:05:30.900> it<00:05:31.080> is<00:05:31.320> if<00:05:31.860> your<00:05:31.919> trade 00:05:32.150 --> 00:05:32.160 align:start position:0% now the problem with it is if your trade 00:05:32.160 --> 00:05:33.230 align:start position:0% now the problem with it is if your trade is<00:05:32.340> large<00:05:32.520> enough<00:05:32.639> if<00:05:32.880> the<00:05:32.940> slippage 00:05:33.230 --> 00:05:33.240 align:start position:0% is large enough if the slippage 00:05:33.240 --> 00:05:35.450 align:start position:0% is large enough if the slippage tolerance<00:05:33.600> is<00:05:33.720> large<00:05:33.900> enough<00:05:34.280> the<00:05:35.280> block 00:05:35.450 --> 00:05:35.460 align:start position:0% tolerance is large enough the block 00:05:35.460 --> 00:05:37.670 align:start position:0% tolerance is large enough the block Builder<00:05:36.120> proposer<00:05:36.660> validator<00:05:37.020> Miner<00:05:37.440> column 00:05:37.670 --> 00:05:37.680 align:start position:0% Builder proposer validator Miner column 00:05:37.680 --> 00:05:39.770 align:start position:0% Builder proposer validator Miner column what<00:05:37.860> you<00:05:37.979> will<00:05:38.160> has<00:05:38.400> an<00:05:38.639> incentive<00:05:39.060> to 00:05:39.770 --> 00:05:39.780 align:start position:0% what you will has an incentive to 00:05:39.780 --> 00:05:41.689 align:start position:0% what you will has an incentive to actually<00:05:39.960> manipulate<00:05:40.680> the<00:05:40.919> prices<00:05:41.039> and 00:05:41.689 --> 00:05:41.699 align:start position:0% actually manipulate the prices and 00:05:41.699 --> 00:05:43.790 align:start position:0% actually manipulate the prices and execute<00:05:42.060> your<00:05:42.240> trade<00:05:42.539> exactly<00:05:43.080> at<00:05:43.320> your<00:05:43.440> bid 00:05:43.790 --> 00:05:43.800 align:start position:0% execute your trade exactly at your bid 00:05:43.800 --> 00:05:45.650 align:start position:0% execute your trade exactly at your bid at<00:05:44.340> the<00:05:44.520> bid<00:05:44.699> that<00:05:44.820> includes<00:05:45.180> your<00:05:45.360> slippage 00:05:45.650 --> 00:05:45.660 align:start position:0% at the bid that includes your slippage 00:05:45.660 --> 00:05:47.390 align:start position:0% at the bid that includes your slippage tolerance<00:05:46.139> and<00:05:46.620> so<00:05:46.740> this<00:05:46.919> is<00:05:47.039> what<00:05:47.220> happened 00:05:47.390 --> 00:05:47.400 align:start position:0% tolerance and so this is what happened 00:05:47.400 --> 00:05:48.409 align:start position:0% tolerance and so this is what happened here 00:05:48.409 --> 00:05:48.419 align:start position:0% here 00:05:48.419 --> 00:05:50.450 align:start position:0% here um the<00:05:48.840> this<00:05:49.080> person<00:05:49.320> got<00:05:49.620> got<00:05:49.860> sandwiched 00:05:50.450 --> 00:05:50.460 align:start position:0% um the this person got got sandwiched 00:05:50.460 --> 00:05:52.430 align:start position:0% um the this person got got sandwiched and<00:05:51.000> lost<00:05:51.360> ten<00:05:51.780> thousand<00:05:52.020> five<00:05:52.139> hundred 00:05:52.430 --> 00:05:52.440 align:start position:0% and lost ten thousand five hundred 00:05:52.440 --> 00:05:54.170 align:start position:0% and lost ten thousand five hundred dollar<00:05:52.620> to 00:05:54.170 --> 00:05:54.180 align:start position:0% dollar to 00:05:54.180 --> 00:05:56.330 align:start position:0% dollar to the<00:05:54.780> in<00:05:54.960> this<00:05:55.320> case<00:05:55.380> it<00:05:55.560> was<00:05:55.740> after<00:05:55.860> the<00:05:56.100> merge 00:05:56.330 --> 00:05:56.340 align:start position:0% the in this case it was after the merge 00:05:56.340 --> 00:05:58.189 align:start position:0% the in this case it was after the merge to<00:05:56.520> to<00:05:56.699> the<00:05:56.940> to<00:05:57.240> the<00:05:57.419> block<00:05:57.600> producer<00:05:58.020> or 00:05:58.189 --> 00:05:58.199 align:start position:0% to to the to the block producer or 00:05:58.199 --> 00:06:00.170 align:start position:0% to to the to the block producer or validator<00:05:58.740> and<00:05:59.280> so<00:05:59.400> this<00:05:59.639> is<00:05:59.759> really<00:05:59.940> what 00:06:00.170 --> 00:06:00.180 align:start position:0% validator and so this is really what 00:06:00.180 --> 00:06:02.570 align:start position:0% validator and so this is really what makes<00:06:00.360> amm's<00:06:01.139> fundamentally<00:06:01.740> unsafe<00:06:02.280> by 00:06:02.570 --> 00:06:02.580 align:start position:0% makes amm's fundamentally unsafe by 00:06:02.580 --> 00:06:04.670 align:start position:0% makes amm's fundamentally unsafe by Design<00:06:02.820> the<00:06:03.780> fact<00:06:03.900> that<00:06:04.139> you<00:06:04.259> cannot<00:06:04.500> be 00:06:04.670 --> 00:06:04.680 align:start position:0% Design the fact that you cannot be 00:06:04.680 --> 00:06:06.710 align:start position:0% Design the fact that you cannot be honest<00:06:04.919> about<00:06:05.100> your<00:06:05.340> slippage<00:06:05.639> tolerance<00:06:06.060> you 00:06:06.710 --> 00:06:06.720 align:start position:0% honest about your slippage tolerance you 00:06:06.720 --> 00:06:08.810 align:start position:0% honest about your slippage tolerance you basically<00:06:06.960> have<00:06:07.139> to<00:06:07.320> lie<00:06:07.620> to<00:06:07.740> the<00:06:07.860> amm<00:06:08.280> and<00:06:08.580> say 00:06:08.810 --> 00:06:08.820 align:start position:0% basically have to lie to the amm and say 00:06:08.820 --> 00:06:09.830 align:start position:0% basically have to lie to the amm and say hey 00:06:09.830 --> 00:06:09.840 align:start position:0% hey 00:06:09.840 --> 00:06:11.689 align:start position:0% hey um<00:06:09.900> you<00:06:10.199> know<00:06:10.320> just<00:06:10.860> set<00:06:11.039> this<00:06:11.280> small<00:06:11.460> slip 00:06:11.689 --> 00:06:11.699 align:start position:0% um you know just set this small slip 00:06:11.699 --> 00:06:13.010 align:start position:0% um you know just set this small slip Assurance<00:06:11.940> because<00:06:12.300> I<00:06:12.479> know<00:06:12.539> if<00:06:12.720> I<00:06:12.900> really 00:06:13.010 --> 00:06:13.020 align:start position:0% Assurance because I know if I really 00:06:13.020 --> 00:06:14.210 align:start position:0% Assurance because I know if I really tell<00:06:13.259> you<00:06:13.380> what<00:06:13.500> I'm<00:06:13.680> willing<00:06:13.919> to<00:06:14.039> accept 00:06:14.210 --> 00:06:14.220 align:start position:0% tell you what I'm willing to accept 00:06:14.220 --> 00:06:16.790 align:start position:0% tell you what I'm willing to accept somebody<00:06:14.940> is<00:06:15.240> going<00:06:15.419> to<00:06:15.600> sandwich<00:06:15.960> me<00:06:16.320> and<00:06:16.560> and 00:06:16.790 --> 00:06:16.800 align:start position:0% somebody is going to sandwich me and and 00:06:16.800 --> 00:06:18.950 align:start position:0% somebody is going to sandwich me and and run<00:06:17.220> over<00:06:17.400> me<00:06:17.639> and<00:06:18.060> so<00:06:18.180> maybe<00:06:18.300> to<00:06:18.479> go<00:06:18.660> a<00:06:18.840> step 00:06:18.950 --> 00:06:18.960 align:start position:0% run over me and so maybe to go a step 00:06:18.960 --> 00:06:21.290 align:start position:0% run over me and so maybe to go a step back<00:06:19.139> and<00:06:19.380> and<00:06:19.680> revisit<00:06:20.400> why<00:06:20.699> is<00:06:20.880> it<00:06:20.940> important 00:06:21.290 --> 00:06:21.300 align:start position:0% back and and revisit why is it important 00:06:21.300 --> 00:06:24.170 align:start position:0% back and and revisit why is it important to<00:06:21.600> save<00:06:21.840> a<00:06:22.380> a<00:06:22.620> safe<00:06:22.800> mechanism<00:06:23.460> design<00:06:23.699> here<00:06:24.000> a 00:06:24.170 --> 00:06:24.180 align:start position:0% to save a a safe mechanism design here a 00:06:24.180 --> 00:06:25.070 align:start position:0% to save a a safe mechanism design here a safe<00:06:24.300> Market 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basically<00:06:32.400> the<00:06:32.639> system<00:06:32.759> is<00:06:33.000> secure<00:06:33.300> and<00:06:33.600> that 00:06:33.770 --> 00:06:33.780 align:start position:0% basically the system is secure and that 00:06:33.780 --> 00:06:35.990 align:start position:0% basically the system is secure and that the<00:06:33.960> allocations<00:06:34.319> is<00:06:34.620> is<00:06:34.919> optimal<00:06:35.580> and<00:06:35.759> and 00:06:35.990 --> 00:06:36.000 align:start position:0% the allocations is is optimal and and 00:06:36.000 --> 00:06:38.330 align:start position:0% the allocations is is optimal and and you<00:06:36.780> find<00:06:36.960> the<00:06:37.139> right<00:06:37.259> answer 00:06:38.330 --> 00:06:38.340 align:start position:0% you find the right answer 00:06:38.340 --> 00:06:40.010 align:start position:0% you find the right answer the<00:06:38.819> second<00:06:38.880> reason<00:06:39.120> why<00:06:39.360> safe<00:06:39.539> markets<00:06:39.960> are 00:06:40.010 --> 00:06:40.020 align:start position:0% the second reason why safe markets are 00:06:40.020 --> 00:06:42.890 align:start position:0% the second reason why safe markets are better<00:06:40.199> or<00:06:40.680> important<00:06:41.639> is<00:06:42.479> that<00:06:42.720> they're 00:06:42.890 --> 00:06:42.900 align:start position:0% better or important is that they're 00:06:42.900 --> 00:06:45.290 align:start position:0% better or important is that they're fundamentally<00:06:43.500> more<00:06:43.740> efficient<00:06:44.220> than<00:06:44.940> unsafe 00:06:45.290 --> 00:06:45.300 align:start position:0% fundamentally more efficient than unsafe 00:06:45.300 --> 00:06:47.029 align:start position:0% fundamentally more efficient than unsafe markets<00:06:45.840> because<00:06:46.259> if<00:06:46.440> users<00:06:46.860> are 00:06:47.029 --> 00:06:47.039 align:start position:0% markets because if users are 00:06:47.039 --> 00:06:49.129 align:start position:0% markets because if users are incentivized<00:06:47.759> to<00:06:47.880> Rel<00:06:48.060> to<00:06:48.419> reveal<00:06:48.720> their<00:06:48.960> true 00:06:49.129 --> 00:06:49.139 align:start position:0% incentivized to Rel to reveal their true 00:06:49.139 --> 00:06:50.809 align:start position:0% incentivized to Rel to reveal their true preferences<00:06:49.800> you<00:06:50.100> can<00:06:50.160> just<00:06:50.340> look<00:06:50.520> at<00:06:50.639> the 00:06:50.809 --> 00:06:50.819 align:start position:0% preferences you can just look at the 00:06:50.819 --> 00:06:52.129 align:start position:0% preferences you can just look at the preference<00:06:51.180> and<00:06:51.419> find<00:06:51.600> the<00:06:51.720> globally 00:06:52.129 --> 00:06:52.139 align:start position:0% preference and find the globally 00:06:52.139 --> 00:06:55.309 align:start position:0% preference and find the globally socially<00:06:52.979> optimal<00:06:53.400> application<00:06:53.880> in<00:06:54.360> in<00:06:55.139> one 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position:0% around the haggle around the table and<00:07:02.100> then<00:07:02.220> the<00:07:02.400> last<00:07:02.520> point<00:07:02.699> is<00:07:02.940> maybe<00:07:03.180> a<00:07:03.900> more 00:07:04.010 --> 00:07:04.020 align:start position:0% and then the last point is maybe a more 00:07:04.020 --> 00:07:06.110 align:start position:0% and then the last point is maybe a more altruistic<00:07:04.620> argument<00:07:05.039> that 00:07:06.110 --> 00:07:06.120 align:start position:0% altruistic argument that 00:07:06.120 --> 00:07:08.150 align:start position:0% altruistic argument that safe<00:07:06.539> markets<00:07:07.020> are<00:07:07.139> just<00:07:07.380> fundamentally 00:07:08.150 --> 00:07:08.160 align:start position:0% safe markets are just fundamentally 00:07:08.160 --> 00:07:09.770 align:start position:0% safe markets are just fundamentally fairer<00:07:08.639> to<00:07:08.819> the<00:07:09.000> least<00:07:09.120> sophisticated 00:07:09.770 --> 00:07:09.780 align:start position:0% fairer to the least sophisticated 00:07:09.780 --> 00:07:11.809 align:start position:0% fairer to the least sophisticated participants<00:07:10.380> Tyrone<00:07:11.280> was<00:07:11.460> talking<00:07:11.639> about 00:07:11.809 --> 00:07:11.819 align:start position:0% participants Tyrone was talking about 00:07:11.819 --> 00:07:13.670 align:start position:0% participants Tyrone was talking about stealing<00:07:12.240> from<00:07:12.360> grandmothers<00:07:12.960> I<00:07:13.380> personally 00:07:13.670 --> 00:07:13.680 align:start position:0% stealing from grandmothers I personally 00:07:13.680 --> 00:07:14.930 align:start position:0% stealing from grandmothers I personally think<00:07:13.919> more<00:07:14.100> about<00:07:14.280> people<00:07:14.520> that<00:07:14.759> visit 00:07:14.930 --> 00:07:14.940 align:start position:0% think more about people that visit 00:07:14.940 --> 00:07:17.090 align:start position:0% think more about people that visit Reddit<00:07:15.539> and<00:07:15.900> find<00:07:16.080> a<00:07:16.259> new<00:07:16.380> coin<00:07:16.620> and<00:07:16.800> then<00:07:16.919> go 00:07:17.090 --> 00:07:17.100 align:start position:0% Reddit and find a new coin and then go 00:07:17.100 --> 00:07:18.409 align:start position:0% Reddit and find a new coin and then go on<00:07:17.220> uni<00:07:17.460> swap<00:07:17.639> trying<00:07:17.819> to<00:07:17.940> trade<00:07:18.120> it<00:07:18.240> and 00:07:18.409 --> 00:07:18.419 align:start position:0% on uni swap trying to trade it and 00:07:18.419 --> 00:07:20.150 align:start position:0% on uni swap trying to trade it and basically<00:07:18.720> Get<00:07:18.840> Wrecked 00:07:20.150 --> 00:07:20.160 align:start position:0% basically Get Wrecked 00:07:20.160 --> 00:07:21.830 align:start position:0% basically Get Wrecked um<00:07:20.280> and<00:07:20.580> yeah<00:07:20.819> the<00:07:21.120> least<00:07:21.300> sophisticated 00:07:21.830 --> 00:07:21.840 align:start position:0% um and yeah the least sophisticated 00:07:21.840 --> 00:07:24.589 align:start position:0% um and yeah the least sophisticated participants<00:07:22.440> are<00:07:23.000> automatically<00:07:24.000> protected 00:07:24.589 --> 00:07:24.599 align:start position:0% participants are automatically protected 00:07:24.599 --> 00:07:27.110 align:start position:0% participants are automatically protected in<00:07:24.780> safe<00:07:24.960> markets<00:07:25.860> and<00:07:26.280> so<00:07:26.460> I<00:07:26.580> agree<00:07:26.880> with 00:07:27.110 --> 00:07:27.120 align:start position:0% in safe markets and so I agree with 00:07:27.120 --> 00:07:29.510 align:start position:0% in safe markets and so I agree with Maureen<00:07:27.660> O'Hara<00:07:27.960> who's<00:07:28.259> a<00:07:28.560> professor<00:07:29.280> at 00:07:29.510 --> 00:07:29.520 align:start position:0% Maureen O'Hara who's a professor at 00:07:29.520 --> 00:07:32.029 align:start position:0% Maureen O'Hara who's a professor at Cornell<00:07:30.240> who<00:07:30.479> says<00:07:30.780> especially<00:07:31.560> on<00:07:31.860> this 00:07:32.029 --> 00:07:32.039 align:start position:0% Cornell who says especially on this 00:07:32.039 --> 00:07:34.249 align:start position:0% Cornell who says especially on this problem<00:07:32.280> of<00:07:32.520> Mev<00:07:32.940> that<00:07:33.240> blockchain<00:07:33.960> is<00:07:34.139> not 00:07:34.249 --> 00:07:34.259 align:start position:0% problem of Mev that blockchain is not 00:07:34.259 --> 00:07:35.689 align:start position:0% problem of Mev that blockchain is not going<00:07:34.440> to<00:07:34.500> succeed<00:07:34.800> if<00:07:35.039> it's<00:07:35.160> not<00:07:35.280> viewed<00:07:35.639> it's 00:07:35.689 --> 00:07:35.699 align:start position:0% going to succeed if it's not viewed it's 00:07:35.699 --> 00:07:37.610 align:start position:0% going to succeed if it's not viewed it's viewed<00:07:36.000> as<00:07:36.060> fared<00:07:36.419> and<00:07:36.900> so<00:07:37.020> let's<00:07:37.199> you<00:07:37.500> know 00:07:37.610 --> 00:07:37.620 align:start position:0% viewed as fared and so let's you know 00:07:37.620 --> 00:07:39.529 align:start position:0% viewed as fared and so let's you know revisit<00:07:38.580> the<00:07:38.699> site<00:07:38.880> that<00:07:39.000> we<00:07:39.180> saw<00:07:39.240> in<00:07:39.360> the<00:07:39.479> very 00:07:39.529 --> 00:07:39.539 align:start position:0% revisit the site that we saw in the very 00:07:39.539 --> 00:07:41.330 align:start position:0% revisit the site that we saw in the very beginning<00:07:39.720> if<00:07:40.259> we<00:07:40.440> want<00:07:40.560> to<00:07:40.680> get<00:07:40.860> larger 00:07:41.330 --> 00:07:41.340 align:start position:0% beginning if we want to get larger 00:07:41.340 --> 00:07:44.150 align:start position:0% beginning if we want to get larger market<00:07:41.520> adoption<00:07:42.060> we<00:07:42.660> need<00:07:42.840> to<00:07:43.020> design<00:07:43.319> fairer 00:07:44.150 --> 00:07:44.160 align:start position:0% market adoption we need to design fairer 00:07:44.160 --> 00:07:46.370 align:start position:0% market adoption we need to design fairer and<00:07:44.340> safer<00:07:44.759> Market<00:07:45.000> mechanisms 00:07:46.370 --> 00:07:46.380 align:start position:0% and safer Market mechanisms 00:07:46.380 --> 00:07:48.469 align:start position:0% and safer Market mechanisms so<00:07:46.800> how<00:07:46.979> do<00:07:47.099> we<00:07:47.220> build<00:07:47.340> safety<00:07:47.699> on<00:07:47.819> top<00:07:47.940> of<00:07:48.060> amms 00:07:48.469 --> 00:07:48.479 align:start position:0% so how do we build safety on top of amms 00:07:48.479 --> 00:07:50.270 align:start position:0% so how do we build safety on top of amms this<00:07:49.199> is<00:07:49.259> what<00:07:49.380> the<00:07:49.560> second<00:07:49.680> part<00:07:49.860> of<00:07:50.039> this 00:07:50.270 --> 00:07:50.280 align:start position:0% this is what the second part of this 00:07:50.280 --> 00:07:51.950 align:start position:0% this is what the second part of this talk<00:07:50.580> will<00:07:50.819> focus<00:07:51.060> on 00:07:51.950 --> 00:07:51.960 align:start position:0% talk will focus on 00:07:51.960 --> 00:07:53.629 align:start position:0% talk will focus on the<00:07:52.500> first<00:07:52.620> thing<00:07:52.800> that<00:07:52.979> I<00:07:53.160> want<00:07:53.220> to<00:07:53.340> kind<00:07:53.520> of 00:07:53.629 --> 00:07:53.639 align:start position:0% the first thing that I want to kind of 00:07:53.639 --> 00:07:57.110 align:start position:0% the first thing that I want to kind of revisit<00:07:54.120> is<00:07:54.599> what<00:07:55.319> we<00:07:55.680> think<00:07:55.860> is 00:07:57.110 --> 00:07:57.120 align:start position:0% revisit is what we think is 00:07:57.120 --> 00:07:59.330 align:start position:0% revisit is what we think is probably<00:07:57.720> the<00:07:58.199> fundamental<00:07:58.680> root<00:07:58.979> cause<00:07:59.099> of 00:07:59.330 --> 00:07:59.340 align:start position:0% probably the fundamental root cause of 00:07:59.340 --> 00:08:00.770 align:start position:0% probably the fundamental root cause of most<00:07:59.520> of<00:07:59.639> the<00:07:59.759> Meb<00:08:00.120> that's<00:08:00.300> out<00:08:00.479> there<00:08:00.599> maybe 00:08:00.770 --> 00:08:00.780 align:start position:0% most of the Meb that's out there maybe 00:08:00.780 --> 00:08:02.510 align:start position:0% most of the Meb that's out there maybe maybe<00:08:01.020> even<00:08:01.199> all<00:08:01.440> Meb 00:08:02.510 --> 00:08:02.520 align:start position:0% maybe even all Meb 00:08:02.520 --> 00:08:04.850 align:start position:0% maybe even all Meb and<00:08:02.940> that<00:08:03.060> is<00:08:03.240> that<00:08:03.419> a<00:08:03.720> single<00:08:04.020> asset<00:08:04.380> today<00:08:04.620> on 00:08:04.850 --> 00:08:04.860 align:start position:0% and that is that a single asset today on 00:08:04.860 --> 00:08:07.070 align:start position:0% and that is that a single asset today on ethereum<00:08:05.340> can<00:08:06.000> have<00:08:06.180> many<00:08:06.419> different<00:08:06.660> prices 00:08:07.070 --> 00:08:07.080 align:start position:0% ethereum can have many different prices 00:08:07.080 --> 00:08:09.170 align:start position:0% ethereum can have many different prices within<00:08:07.860> the<00:08:07.979> same<00:08:08.160> block 00:08:09.170 --> 00:08:09.180 align:start position:0% within the same block 00:08:09.180 --> 00:08:10.969 align:start position:0% within the same block here's<00:08:09.660> an<00:08:09.780> example<00:08:10.020> block<00:08:10.259> from<00:08:10.500> I<00:08:10.740> think<00:08:10.800> a 00:08:10.969 --> 00:08:10.979 align:start position:0% here's an example block from I think a 00:08:10.979 --> 00:08:13.249 align:start position:0% here's an example block from I think a week<00:08:11.099> and<00:08:11.220> a<00:08:11.340> half<00:08:11.400> ago<00:08:11.759> where 00:08:13.249 --> 00:08:13.259 align:start position:0% week and a half ago where 00:08:13.259 --> 00:08:14.990 align:start position:0% week and a half ago where the<00:08:13.800> most<00:08:13.919> liquid<00:08:14.220> pair<00:08:14.400> that<00:08:14.639> exists<00:08:14.880> on 00:08:14.990 --> 00:08:15.000 align:start position:0% the most liquid pair that exists on 00:08:15.000 --> 00:08:17.570 align:start position:0% the most liquid pair that exists on ethereum<00:08:15.419> ethusd<00:08:16.139> was<00:08:16.560> traded<00:08:16.979> 11<00:08:17.220> times 00:08:17.570 --> 00:08:17.580 align:start position:0% ethereum ethusd was traded 11 times 00:08:17.580 --> 00:08:19.189 align:start position:0% ethereum ethusd was traded 11 times within<00:08:18.060> the<00:08:18.240> same<00:08:18.360> block 00:08:19.189 --> 00:08:19.199 align:start position:0% within the same block 00:08:19.199 --> 00:08:21.770 align:start position:0% within the same block and<00:08:19.800> at<00:08:19.979> eight<00:08:20.160> different<00:08:20.340> prices<00:08:20.780> the 00:08:21.770 --> 00:08:21.780 align:start position:0% and at eight different prices the 00:08:21.780 --> 00:08:22.909 align:start position:0% and at eight different prices the difference<00:08:21.900> between<00:08:22.199> the<00:08:22.440> lowest<00:08:22.680> and<00:08:22.800> the 00:08:22.909 --> 00:08:22.919 align:start position:0% difference between the lowest and the 00:08:22.919 --> 00:08:24.589 align:start position:0% difference between the lowest and the highest<00:08:23.099> price<00:08:23.280> in<00:08:23.460> this<00:08:23.639> block<00:08:23.759> was<00:08:24.360> more 00:08:24.589 --> 00:08:24.599 align:start position:0% highest price in this block was more 00:08:24.599 --> 00:08:25.850 align:start position:0% highest price in this block was more than<00:08:24.720> one<00:08:24.900> percent 00:08:25.850 --> 00:08:25.860 align:start position:0% than one percent 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the<00:08:31.800> the<00:08:31.919> state<00:08:32.279> of<00:08:32.459> the 00:08:32.570 --> 00:08:32.580 align:start position:0% freeze kind of the the state of the 00:08:32.580 --> 00:08:34.909 align:start position:0% freeze kind of the the state of the world<00:08:32.700> in<00:08:32.940> a<00:08:33.120> specific<00:08:33.419> instant<00:08:33.839> of<00:08:34.020> time<00:08:34.260> and 00:08:34.909 --> 00:08:34.919 align:start position:0% world in a specific instant of time and 00:08:34.919 --> 00:08:36.469 align:start position:0% world in a specific instant of time and yet<00:08:35.039> that<00:08:35.339> instant<00:08:35.700> of<00:08:35.820> time<00:08:35.940> told<00:08:36.240> people 00:08:36.469 --> 00:08:36.479 align:start position:0% yet that instant of time told people 00:08:36.479 --> 00:08:38.029 align:start position:0% yet that instant of time told people well<00:08:36.719> there's<00:08:36.959> eight<00:08:37.200> different<00:08:37.380> prices<00:08:37.680> for 00:08:38.029 --> 00:08:38.039 align:start position:0% well there's eight different prices for 00:08:38.039 --> 00:08:40.610 align:start position:0% well there's eight different prices for for<00:08:38.219> the<00:08:38.399> most<00:08:38.520> liquid<00:08:38.880> pair<00:08:39.060> and<00:08:39.899> for<00:08:40.320> example 00:08:40.610 --> 00:08:40.620 align:start position:0% for the most liquid pair and for example 00:08:40.620 --> 00:08:42.769 align:start position:0% for the most liquid pair and for example latency<00:08:41.459> Arbitrage<00:08:42.060> when<00:08:42.300> you<00:08:42.419> see<00:08:42.539> a<00:08:42.659> price 00:08:42.769 --> 00:08:42.779 align:start position:0% latency Arbitrage when you see a price 00:08:42.779 --> 00:08:44.389 align:start position:0% latency Arbitrage when you see a price change<00:08:43.020> on<00:08:43.320> binance<00:08:43.740> and<00:08:43.919> you<00:08:44.099> try<00:08:44.219> to 00:08:44.389 --> 00:08:44.399 align:start position:0% change on binance and you try to 00:08:44.399 --> 00:08:47.030 align:start position:0% change on binance and you try to Arbitrage<00:08:44.820> it<00:08:45.000> away<00:08:45.120> against<00:08:45.300> an<00:08:45.540> amm<00:08:46.380> that<00:08:46.860> is 00:08:47.030 --> 00:08:47.040 align:start position:0% Arbitrage it away against an amm that is 00:08:47.040 --> 00:08:49.070 align:start position:0% Arbitrage it away against an amm that is an<00:08:47.160> example<00:08:47.399> of<00:08:47.580> Mev<00:08:48.000> that<00:08:48.300> comes<00:08:48.540> from<00:08:48.720> have 00:08:49.070 --> 00:08:49.080 align:start position:0% an example of Mev that comes from have 00:08:49.080 --> 00:08:51.110 align:start position:0% an example of Mev that comes from have one<00:08:49.380> asset<00:08:49.680> having<00:08:49.860> multiple<00:08:50.220> prices<00:08:50.459> because 00:08:51.110 --> 00:08:51.120 align:start position:0% one asset having multiple prices because 00:08:51.120 --> 00:08:52.730 align:start position:0% one asset having multiple prices because the<00:08:51.540> first<00:08:51.600> person<00:08:51.839> that<00:08:52.080> gets<00:08:52.320> to<00:08:52.380> trade<00:08:52.560> in 00:08:52.730 --> 00:08:52.740 align:start position:0% the first person that gets to trade in 00:08:52.740 --> 00:08:54.650 align:start position:0% the first person that gets to trade in the<00:08:53.100> amm<00:08:53.519> still<00:08:53.760> has<00:08:53.880> the<00:08:54.060> outdated<00:08:54.420> price 00:08:54.650 --> 00:08:54.660 align:start position:0% the amm still has the outdated price 00:08:54.660 --> 00:08:56.329 align:start position:0% the amm still has the outdated price available<00:08:54.899> and<00:08:55.320> then<00:08:55.440> everyone<00:08:55.680> else<00:08:55.920> in<00:08:56.160> the 00:08:56.329 --> 00:08:56.339 align:start position:0% available and then everyone else in the 00:08:56.339 --> 00:08:58.310 align:start position:0% available and then everyone else in the block<00:08:56.459> uh<00:08:57.240> trades<00:08:57.540> at<00:08:57.660> the<00:08:57.779> fair<00:08:57.839> market<00:08:58.019> Price 00:08:58.310 --> 00:08:58.320 align:start position:0% block uh trades at the fair market Price 00:08:58.320 --> 00:09:00.829 align:start position:0% block uh trades at the fair market Price we<00:08:58.680> have<00:08:58.800> one<00:08:58.980> asset<00:08:59.339> many<00:08:59.580> prices<00:08:59.880> the<00:09:00.720> reason 00:09:00.829 --> 00:09:00.839 align:start position:0% we have one asset many prices the reason 00:09:00.839 --> 00:09:02.750 align:start position:0% we have one asset many prices the reason that<00:09:01.080> liquidations<00:09:01.560> cause<00:09:01.920> Mev<00:09:02.459> is<00:09:02.640> because 00:09:02.750 --> 00:09:02.760 align:start position:0% that liquidations cause Mev is because 00:09:02.760 --> 00:09:04.730 align:start position:0% that liquidations cause Mev is because that<00:09:03.060> whoever<00:09:03.420> triggers<00:09:03.779> the<00:09:04.019> liquidation 00:09:04.730 --> 00:09:04.740 align:start position:0% that whoever triggers the liquidation 00:09:04.740 --> 00:09:06.889 align:start position:0% that whoever triggers the liquidation gets<00:09:05.160> to<00:09:05.279> trade<00:09:05.700> at<00:09:05.820> a<00:09:06.000> discount<00:09:06.120> whereas<00:09:06.779> the 00:09:06.889 --> 00:09:06.899 align:start position:0% gets to trade at a discount whereas the 00:09:06.899 --> 00:09:08.150 align:start position:0% gets to trade at a discount whereas the rest<00:09:07.019> of<00:09:07.140> the<00:09:07.260> market<00:09:07.380> trades<00:09:07.800> at<00:09:07.860> a<00:09:08.040> different 00:09:08.150 --> 00:09:08.160 align:start position:0% rest of the market trades at a different 00:09:08.160 --> 00:09:10.310 align:start position:0% rest of the market trades at a different price<00:09:08.399> rather<00:09:09.180> than<00:09:09.360> using<00:09:09.779> the<00:09:09.899> liquidation 00:09:10.310 --> 00:09:10.320 align:start position:0% price rather than using the liquidation 00:09:10.320 --> 00:09:12.170 align:start position:0% price rather than using the liquidation volume<00:09:10.620> and<00:09:11.160> put<00:09:11.279> it<00:09:11.399> into<00:09:11.580> the<00:09:11.820> fair<00:09:11.940> price 00:09:12.170 --> 00:09:12.180 align:start position:0% volume and put it into the fair price 00:09:12.180 --> 00:09:14.449 align:start position:0% volume and put it into the fair price finding<00:09:12.660> and<00:09:13.080> just<00:09:13.200> settle<00:09:13.560> everything<00:09:13.740> at<00:09:14.279> a 00:09:14.449 --> 00:09:14.459 align:start position:0% finding and just settle everything at a 00:09:14.459 --> 00:09:16.430 align:start position:0% finding and just settle everything at a single<00:09:14.760> price<00:09:15.120> and<00:09:15.600> then<00:09:15.720> the<00:09:15.899> last<00:09:16.019> point<00:09:16.200> the 00:09:16.430 --> 00:09:16.440 align:start position:0% single price and then the last point the 00:09:16.440 --> 00:09:17.750 align:start position:0% single price and then the last point the sandwich<00:09:16.740> attacks<00:09:17.279> we<00:09:17.339> saw<00:09:17.459> on<00:09:17.580> the<00:09:17.640> last 00:09:17.750 --> 00:09:17.760 align:start position:0% sandwich attacks we saw on the last 00:09:17.760 --> 00:09:19.550 align:start position:0% sandwich attacks we saw on the last slide<00:09:18.060> it's<00:09:18.120> very<00:09:18.300> obvious<00:09:18.660> there<00:09:19.260> was<00:09:19.440> three 00:09:19.550 --> 00:09:19.560 align:start position:0% slide it's very obvious there was three 00:09:19.560 --> 00:09:21.410 align:start position:0% slide it's very obvious there was three different<00:09:19.740> prices<00:09:20.040> the<00:09:20.399> opening<00:09:20.820> the<00:09:21.060> victim 00:09:21.410 --> 00:09:21.420 align:start position:0% different prices the opening the victim 00:09:21.420 --> 00:09:24.050 align:start position:0% different prices the opening the victim and<00:09:21.660> the<00:09:21.779> sandwich<00:09:22.019> again<00:09:22.920> one<00:09:23.399> asset<00:09:23.760> many 00:09:24.050 --> 00:09:24.060 align:start position:0% and the sandwich again one asset many 00:09:24.060 --> 00:09:26.509 align:start position:0% and the sandwich again one asset many prices<00:09:24.360> and<00:09:24.839> that's<00:09:24.959> why<00:09:25.080> we<00:09:25.260> have<00:09:25.320> Med<00:09:25.560> so<00:09:26.339> I 00:09:26.509 --> 00:09:26.519 align:start position:0% prices and that's why we have Med so I 00:09:26.519 --> 00:09:28.250 align:start position:0% prices and that's why we have Med so I argue<00:09:26.820> that<00:09:27.000> any<00:09:27.180> Market<00:09:27.480> structure<00:09:27.959> where 00:09:28.250 --> 00:09:28.260 align:start position:0% argue that any Market structure where 00:09:28.260 --> 00:09:31.850 align:start position:0% argue that any Market structure where prices<00:09:28.560> depend<00:09:29.220> on<00:09:29.700> arbitrary<00:09:30.660> the<00:09:31.440> the<00:09:31.620> block 00:09:31.850 --> 00:09:31.860 align:start position:0% prices depend on arbitrary the the block 00:09:31.860 --> 00:09:33.889 align:start position:0% prices depend on arbitrary the the block producer<00:09:32.279> can<00:09:32.459> choose<00:09:32.700> it<00:09:32.820> at<00:09:33.120> no 00:09:33.889 --> 00:09:33.899 align:start position:0% producer can choose it at no 00:09:33.899 --> 00:09:36.110 align:start position:0% producer can choose it at no um<00:09:33.959> basically<00:09:34.320> at<00:09:34.440> their<00:09:34.620> own<00:09:34.740> will<00:09:35.120> that 00:09:36.110 --> 00:09:36.120 align:start position:0% um basically at their own will that 00:09:36.120 --> 00:09:38.269 align:start position:0% um basically at their own will that arbitrary<00:09:36.839> interblock<00:09:37.440> ordering<00:09:37.800> just<00:09:38.040> makes 00:09:38.269 --> 00:09:38.279 align:start position:0% arbitrary interblock ordering just makes 00:09:38.279 --> 00:09:40.910 align:start position:0% arbitrary interblock ordering just makes the<00:09:38.580> mechanisms<00:09:39.180> unsafe<00:09:39.600> by<00:09:39.899> Design<00:09:40.080> and<00:09:40.800> so 00:09:40.910 --> 00:09:40.920 align:start position:0% the mechanisms unsafe by Design and so 00:09:40.920 --> 00:09:42.170 align:start position:0% the mechanisms unsafe by Design and so what<00:09:41.040> is<00:09:41.160> the<00:09:41.339> solution 00:09:42.170 --> 00:09:42.180 align:start position:0% what is the solution 00:09:42.180 --> 00:09:43.790 align:start position:0% what is the solution well<00:09:42.600> you<00:09:42.779> might<00:09:42.899> have<00:09:43.019> guessed<00:09:43.260> it<00:09:43.320> from<00:09:43.560> how 00:09:43.790 --> 00:09:43.800 align:start position:0% well you might have guessed it from how 00:09:43.800 --> 00:09:46.130 align:start position:0% well you might have guessed it from how I've<00:09:43.980> started<00:09:44.399> this<00:09:44.700> this<00:09:44.940> this<00:09:44.940> chapter<00:09:45.779> but 00:09:46.130 --> 00:09:46.140 align:start position:0% I've started this this this chapter but 00:09:46.140 --> 00:09:48.710 align:start position:0% I've started this this this chapter but the<00:09:46.380> solution<00:09:46.620> is<00:09:46.920> to<00:09:47.459> just<00:09:47.640> have<00:09:47.940> one<00:09:48.420> price 00:09:48.710 --> 00:09:48.720 align:start position:0% the solution is to just have one price 00:09:48.720 --> 00:09:51.350 align:start position:0% the solution is to just have one price per<00:09:49.380> token<00:09:49.920> per<00:09:50.459> block 00:09:51.350 --> 00:09:51.360 align:start position:0% per token per block 00:09:51.360 --> 00:09:53.389 align:start position:0% per token per block and<00:09:51.720> so<00:09:51.839> how<00:09:51.959> would<00:09:52.080> this<00:09:52.260> look<00:09:52.440> like<00:09:52.620> we 00:09:53.389 --> 00:09:53.399 align:start position:0% and so how would this look like we 00:09:53.399 --> 00:09:55.130 align:start position:0% and so how would this look like we basically<00:09:53.700> associated<00:09:54.240> with<00:09:54.480> every<00:09:54.720> ethereum 00:09:55.130 --> 00:09:55.140 align:start position:0% basically associated with every ethereum 00:09:55.140 --> 00:09:58.370 align:start position:0% basically associated with every ethereum block<00:09:55.380> have<00:09:56.279> a<00:09:56.700> price<00:09:57.000> Vector<00:09:57.540> for<00:09:58.200> every 00:09:58.370 --> 00:09:58.380 align:start position:0% block have a price Vector for every 00:09:58.380 --> 00:10:00.410 align:start position:0% block have a price Vector for every asset<00:09:58.800> that<00:09:58.980> is<00:09:59.100> traded<00:09:59.459> in<00:09:59.519> the<00:09:59.640> block<00:09:59.760> and 00:10:00.410 --> 00:10:00.420 align:start position:0% asset that is traded in the block and 00:10:00.420 --> 00:10:02.930 align:start position:0% asset that is traded in the block and that<00:10:00.660> asset<00:10:01.500> just<00:10:01.680> has<00:10:01.860> a<00:10:02.040> single<00:10:02.279> price<00:10:02.459> at 00:10:02.930 --> 00:10:02.940 align:start position:0% that asset just has a single price at 00:10:02.940 --> 00:10:04.730 align:start position:0% that asset just has a single price at which<00:10:03.180> it<00:10:03.300> can<00:10:03.420> be<00:10:03.540> accessed<00:10:03.899> within<00:10:04.260> well 00:10:04.730 --> 00:10:04.740 align:start position:0% which it can be accessed within well 00:10:04.740 --> 00:10:06.410 align:start position:0% which it can be accessed within well that<00:10:04.980> block<00:10:05.160> and<00:10:05.760> this<00:10:05.880> price<00:10:06.120> here<00:10:06.300> is 00:10:06.410 --> 00:10:06.420 align:start position:0% that block and this price here is 00:10:06.420 --> 00:10:07.790 align:start position:0% that block and this price here is denominated<00:10:06.839> in<00:10:07.080> dollars<00:10:07.440> it<00:10:07.680> could 00:10:07.790 --> 00:10:07.800 align:start position:0% denominated in dollars it could 00:10:07.800 --> 00:10:09.710 align:start position:0% denominated in dollars it could theoretically<00:10:08.339> be<00:10:08.519> nominated<00:10:08.940> in<00:10:09.240> every<00:10:09.420> in 00:10:09.710 --> 00:10:09.720 align:start position:0% theoretically be nominated in every in 00:10:09.720 --> 00:10:12.290 align:start position:0% theoretically be nominated in every in any<00:10:09.899> currency<00:10:10.380> you'd<00:10:10.680> like 00:10:12.290 --> 00:10:12.300 align:start position:0% any currency you'd like 00:10:12.300 --> 00:10:14.449 align:start position:0% any currency you'd like um<00:10:12.420> but<00:10:12.720> the<00:10:12.839> idea<00:10:13.080> would<00:10:13.260> then<00:10:13.380> be<00:10:13.560> that<00:10:13.920> the 00:10:14.449 --> 00:10:14.459 align:start position:0% um but the idea would then be that the 00:10:14.459 --> 00:10:16.670 align:start position:0% um but the idea would then be that the participants<00:10:14.940> that<00:10:15.180> are<00:10:15.440> trading<00:10:16.440> in<00:10:16.560> this 00:10:16.670 --> 00:10:16.680 align:start position:0% participants that are trading in this 00:10:16.680 --> 00:10:18.889 align:start position:0% participants that are trading in this block<00:10:16.860> would<00:10:17.279> be<00:10:17.399> trading<00:10:17.820> according<00:10:18.360> to<00:10:18.660> this 00:10:18.889 --> 00:10:18.899 align:start position:0% block would be trading according to this 00:10:18.899 --> 00:10:20.810 align:start position:0% block would be trading according to this single<00:10:19.320> price<00:10:19.500> clearing<00:10:19.980> so<00:10:20.459> if<00:10:20.640> you're 00:10:20.810 --> 00:10:20.820 align:start position:0% single price clearing so if you're 00:10:20.820 --> 00:10:22.370 align:start position:0% single price clearing so if you're trading<00:10:21.300> eth<00:10:21.540> against<00:10:21.720> Bitcoin<00:10:22.140> in<00:10:22.260> this 00:10:22.370 --> 00:10:22.380 align:start position:0% trading eth against Bitcoin in this 00:10:22.380 --> 00:10:23.449 align:start position:0% trading eth against Bitcoin in this block<00:10:22.500> you<00:10:22.740> can<00:10:22.860> basically<00:10:23.160> get<00:10:23.339> your 00:10:23.449 --> 00:10:23.459 align:start position:0% block you can basically get your 00:10:23.459 --> 00:10:25.250 align:start position:0% block you can basically get your exchange<00:10:23.820> rate<00:10:24.000> by<00:10:24.480> just<00:10:24.660> looking<00:10:24.839> up<00:10:25.019> the<00:10:25.140> two 00:10:25.250 --> 00:10:25.260 align:start position:0% exchange rate by just looking up the two 00:10:25.260 --> 00:10:27.230 align:start position:0% exchange rate by just looking up the two values<00:10:25.620> here<00:10:25.740> and<00:10:25.980> that<00:10:26.160> defines<00:10:26.580> what<00:10:27.060> is 00:10:27.230 --> 00:10:27.240 align:start position:0% values here and that defines what is 00:10:27.240 --> 00:10:29.810 align:start position:0% values here and that defines what is your<00:10:27.420> exchange<00:10:27.720> rate<00:10:27.839> in<00:10:28.200> this<00:10:28.380> in<00:10:28.680> this<00:10:28.860> block 00:10:29.810 --> 00:10:29.820 align:start position:0% your exchange rate in this in this block 00:10:29.820 --> 00:10:32.389 align:start position:0% your exchange rate in this in this block and<00:10:30.300> so<00:10:30.480> this<00:10:30.660> idea<00:10:31.019> of<00:10:31.260> uniform<00:10:32.160> price 00:10:32.389 --> 00:10:32.399 align:start position:0% and so this idea of uniform price 00:10:32.399 --> 00:10:35.210 align:start position:0% and so this idea of uniform price clearing<00:10:32.940> is<00:10:33.300> very<00:10:33.600> tightly<00:10:34.080> coupled<00:10:34.560> to<00:10:35.040> the 00:10:35.210 --> 00:10:35.220 align:start position:0% clearing is very tightly coupled to the 00:10:35.220 --> 00:10:36.230 align:start position:0% clearing is very tightly coupled to the idea<00:10:35.459> of 00:10:36.230 --> 00:10:36.240 align:start position:0% idea of 00:10:36.240 --> 00:10:39.590 align:start position:0% idea of um not<00:10:37.100> executing<00:10:38.100> trades<00:10:38.519> sequentially<00:10:39.240> one 00:10:39.590 --> 00:10:39.600 align:start position:0% um not executing trades sequentially one 00:10:39.600 --> 00:10:41.449 align:start position:0% um not executing trades sequentially one after<00:10:39.720> the<00:10:40.019> other<00:10:40.140> but<00:10:40.800> batching<00:10:41.279> them 00:10:41.449 --> 00:10:41.459 align:start position:0% after the other but batching them 00:10:41.459 --> 00:10:43.910 align:start position:0% after the other but batching them together<00:10:41.700> and<00:10:42.540> executing<00:10:43.019> them<00:10:43.200> in<00:10:43.560> one 00:10:43.910 --> 00:10:43.920 align:start position:0% together and executing them in one 00:10:43.920 --> 00:10:46.310 align:start position:0% together and executing them in one single<00:10:44.640> batch 00:10:46.310 --> 00:10:46.320 align:start position:0% single batch 00:10:46.320 --> 00:10:48.170 align:start position:0% single batch so<00:10:46.680> now<00:10:46.860> I<00:10:47.040> want<00:10:47.160> to<00:10:47.279> talk<00:10:47.399> about<00:10:47.519> how<00:10:47.880> we<00:10:48.000> at 00:10:48.170 --> 00:10:48.180 align:start position:0% so now I want to talk about how we at 00:10:48.180 --> 00:10:50.030 align:start position:0% so now I want to talk about how we at Cal<00:10:48.360> swap<00:10:48.779> have<00:10:49.200> built<00:10:49.500> a<00:10:49.560> batch<00:10:49.680> auction 00:10:50.030 --> 00:10:50.040 align:start position:0% Cal swap have built a batch auction 00:10:50.040 --> 00:10:52.310 align:start position:0% Cal swap have built a batch auction system<00:10:50.279> on<00:10:50.519> ethereum<00:10:50.940> we've<00:10:51.660> been<00:10:51.779> live<00:10:51.959> for<00:10:52.200> a 00:10:52.310 --> 00:10:52.320 align:start position:0% system on ethereum we've been live for a 00:10:52.320 --> 00:10:54.650 align:start position:0% system on ethereum we've been live for a year<00:10:52.380> and<00:10:52.500> a<00:10:52.620> half<00:10:52.740> now<00:10:52.980> and<00:10:53.820> yeah<00:10:54.360> you<00:10:54.540> can 00:10:54.650 --> 00:10:54.660 align:start position:0% year and a half now and yeah you can 00:10:54.660 --> 00:10:55.790 align:start position:0% year and a half now and yeah you can actually<00:10:54.779> achieve<00:10:55.260> this<00:10:55.380> with<00:10:55.620> everything 00:10:55.790 --> 00:10:55.800 align:start position:0% actually achieve this with everything 00:10:55.800 --> 00:10:57.949 align:start position:0% actually achieve this with everything that<00:10:56.040> ethereum<00:10:56.399> offers<00:10:56.820> today<00:10:57.180> and<00:10:57.600> just<00:10:57.779> six 00:10:57.949 --> 00:10:57.959 align:start position:0% that ethereum offers today and just six 00:10:57.959 --> 00:10:59.870 align:start position:0% that ethereum offers today and just six simple<00:10:58.260> steps<00:10:58.680> the<00:10:59.279> first<00:10:59.399> thing<00:10:59.579> that<00:10:59.760> we 00:10:59.870 --> 00:10:59.880 align:start position:0% simple steps the first thing that we 00:10:59.880 --> 00:11:01.910 align:start position:0% simple steps the first thing that we need<00:10:59.940> to<00:11:00.060> do<00:11:00.240> is<00:11:00.839> we<00:11:01.019> need<00:11:01.140> to<00:11:01.260> stop<00:11:01.500> people 00:11:01.910 --> 00:11:01.920 align:start position:0% need to do is we need to stop people 00:11:01.920 --> 00:11:04.490 align:start position:0% need to do is we need to stop people from<00:11:02.279> sending<00:11:02.760> raw<00:11:03.360> ethereum<00:11:03.839> transactions 00:11:04.490 --> 00:11:04.500 align:start position:0% from sending raw ethereum transactions 00:11:04.500 --> 00:11:06.230 align:start position:0% from sending raw ethereum transactions because<00:11:05.220> that's<00:11:05.459> just<00:11:05.700> a<00:11:05.820> fundamental 00:11:06.230 --> 00:11:06.240 align:start position:0% because that's just a fundamental 00:11:06.240 --> 00:11:07.850 align:start position:0% because that's just a fundamental limitation<00:11:06.660> of<00:11:06.899> the<00:11:07.019> protocol<00:11:07.320> layer<00:11:07.680> today 00:11:07.850 --> 00:11:07.860 align:start position:0% limitation of the protocol layer today 00:11:07.860 --> 00:11:09.829 align:start position:0% limitation of the protocol layer today you<00:11:08.220> cannot<00:11:08.579> when<00:11:08.820> a<00:11:09.000> user<00:11:09.240> signs<00:11:09.540> a<00:11:09.660> raw 00:11:09.829 --> 00:11:09.839 align:start position:0% you cannot when a user signs a raw 00:11:09.839 --> 00:11:11.630 align:start position:0% you cannot when a user signs a raw transaction<00:11:10.260> you<00:11:10.740> cannot<00:11:10.920> open<00:11:11.160> up<00:11:11.399> this 00:11:11.630 --> 00:11:11.640 align:start position:0% transaction you cannot open up this 00:11:11.640 --> 00:11:13.009 align:start position:0% transaction you cannot open up this transaction<00:11:11.940> batch<00:11:12.360> it<00:11:12.480> together<00:11:12.660> do 00:11:13.009 --> 00:11:13.019 align:start position:0% transaction batch it together do 00:11:13.019 --> 00:11:14.810 align:start position:0% transaction batch it together do anything<00:11:13.200> with<00:11:13.440> it<00:11:13.620> the<00:11:14.040> user<00:11:14.279> signed<00:11:14.640> it<00:11:14.700> so 00:11:14.810 --> 00:11:14.820 align:start position:0% anything with it the user signed it so 00:11:14.820 --> 00:11:16.730 align:start position:0% anything with it the user signed it so it<00:11:15.000> has<00:11:15.120> to<00:11:15.240> be<00:11:15.300> executed<00:11:15.720> at<00:11:15.899> is 00:11:16.730 --> 00:11:16.740 align:start position:0% it has to be executed at is 00:11:16.740 --> 00:11:18.650 align:start position:0% it has to be executed at is but<00:11:17.279> trading<00:11:17.700> can<00:11:17.880> also<00:11:18.060> be<00:11:18.120> done<00:11:18.300> on<00:11:18.540> an 00:11:18.650 --> 00:11:18.660 align:start position:0% but trading can also be done on an 00:11:18.660 --> 00:11:20.690 align:start position:0% but trading can also be done on an intent<00:11:18.959> based<00:11:19.440> really<00:11:19.860> what<00:11:20.040> you<00:11:20.220> do<00:11:20.339> when<00:11:20.579> you 00:11:20.690 --> 00:11:20.700 align:start position:0% intent based really what you do when you 00:11:20.700 --> 00:11:22.670 align:start position:0% intent based really what you do when you when<00:11:20.940> you<00:11:21.120> sign<00:11:21.360> a<00:11:21.600> transactional<00:11:22.140> unit<00:11:22.320> swap 00:11:22.670 --> 00:11:22.680 align:start position:0% when you sign a transactional unit swap 00:11:22.680 --> 00:11:24.230 align:start position:0% when you sign a transactional unit swap you're<00:11:22.860> just<00:11:23.040> saying<00:11:23.279> I<00:11:23.459> want<00:11:23.579> to<00:11:23.700> sell<00:11:23.820> token 00:11:24.230 --> 00:11:24.240 align:start position:0% you're just saying I want to sell token 00:11:24.240 --> 00:11:26.630 align:start position:0% you're just saying I want to sell token a<00:11:24.360> for<00:11:24.540> token<00:11:24.839> B<00:11:24.959> at<00:11:25.260> a<00:11:25.380> specific<00:11:25.620> limit<00:11:25.800> price 00:11:26.630 --> 00:11:26.640 align:start position:0% a for token B at a specific limit price 00:11:26.640 --> 00:11:28.910 align:start position:0% a for token B at a specific limit price and<00:11:27.000> so<00:11:27.120> what<00:11:27.300> we<00:11:27.420> do<00:11:27.600> is<00:11:27.720> we<00:11:27.959> collect<00:11:28.320> users 00:11:28.910 --> 00:11:28.920 align:start position:0% and so what we do is we collect users 00:11:28.920 --> 00:11:31.490 align:start position:0% and so what we do is we collect users user<00:11:29.700> trades<00:11:30.120> as<00:11:30.420> trade<00:11:30.720> intents<00:11:31.200> rather<00:11:31.320> than 00:11:31.490 --> 00:11:31.500 align:start position:0% user trades as trade intents rather than 00:11:31.500 --> 00:11:33.889 align:start position:0% user trades as trade intents rather than as<00:11:31.620> raw<00:11:31.860> transactions<00:11:32.579> and<00:11:33.300> we<00:11:33.420> collect<00:11:33.720> them 00:11:33.889 --> 00:11:33.899 align:start position:0% as raw transactions and we collect them 00:11:33.899 --> 00:11:36.590 align:start position:0% as raw transactions and we collect them over<00:11:34.079> many<00:11:34.500> different<00:11:34.920> token<00:11:35.399> pairs<00:11:35.760> so<00:11:36.480> we 00:11:36.590 --> 00:11:36.600 align:start position:0% over many different token pairs so we 00:11:36.600 --> 00:11:38.210 align:start position:0% over many different token pairs so we basically<00:11:36.899> have<00:11:37.079> this<00:11:37.320> multi-dimensional 00:11:38.210 --> 00:11:38.220 align:start position:0% basically have this multi-dimensional 00:11:38.220 --> 00:11:41.930 align:start position:0% basically have this multi-dimensional order<00:11:38.640> book<00:11:38.940> of<00:11:39.600> signed<00:11:40.380> trade<00:11:40.680> intents<00:11:41.220> which 00:11:41.930 --> 00:11:41.940 align:start position:0% order book of signed trade intents which 00:11:41.940 --> 00:11:44.449 align:start position:0% order book of signed trade intents which we<00:11:42.180> then<00:11:42.360> combine<00:11:42.899> with<00:11:43.260> the<00:11:43.440> entirety<00:11:43.980> of 00:11:44.449 --> 00:11:44.459 align:start position:0% we then combine with the entirety of 00:11:44.459 --> 00:11:45.949 align:start position:0% we then combine with the entirety of on-chain<00:11:44.880> liquidity<00:11:45.360> that<00:11:45.540> exists<00:11:45.839> on 00:11:45.949 --> 00:11:45.959 align:start position:0% on-chain liquidity that exists on 00:11:45.959 --> 00:11:48.230 align:start position:0% on-chain liquidity that exists on ethereum<00:11:46.380> today<00:11:46.620> so<00:11:47.160> all<00:11:47.399> the<00:11:47.519> amms<00:11:47.940> you<00:11:48.120> know 00:11:48.230 --> 00:11:48.240 align:start position:0% ethereum today so all the amms you know 00:11:48.240 --> 00:11:50.030 align:start position:0% ethereum today so all the amms you know about<00:11:48.360> all<00:11:48.779> the<00:11:48.899> RFQ<00:11:49.260> systems<00:11:49.620> you<00:11:49.740> know<00:11:49.920> about 00:11:50.030 --> 00:11:50.040 align:start position:0% about all the RFQ systems you know about 00:11:50.040 --> 00:11:53.090 align:start position:0% about all the RFQ systems you know about and<00:11:50.820> that<00:11:51.000> together<00:11:51.240> creates<00:11:51.839> a<00:11:51.959> thick<00:11:52.200> Market 00:11:53.090 --> 00:11:53.100 align:start position:0% and that together creates a thick Market 00:11:53.100 --> 00:11:54.889 align:start position:0% and that together creates a thick Market we<00:11:53.579> saw<00:11:53.760> earlier<00:11:54.000> that<00:11:54.180> amms<00:11:54.660> are<00:11:54.779> really 00:11:54.889 --> 00:11:54.899 align:start position:0% we saw earlier that amms are really 00:11:54.899 --> 00:11:56.930 align:start position:0% we saw earlier that amms are really responsible<00:11:55.320> for<00:11:55.500> the<00:11:55.680> thickness<00:11:55.980> and<00:11:56.459> so<00:11:56.640> by 00:11:56.930 --> 00:11:56.940 align:start position:0% responsible for the thickness and so by 00:11:56.940 --> 00:11:59.030 align:start position:0% responsible for the thickness and so by adding<00:11:57.420> user<00:11:57.959> orders<00:11:58.260> to<00:11:58.500> the<00:11:58.680> to<00:11:58.860> that 00:11:59.030 --> 00:11:59.040 align:start position:0% adding user orders to the to that 00:11:59.040 --> 00:12:00.410 align:start position:0% adding user orders to the to that liquidity<00:11:59.459> pool<00:11:59.640> we<00:12:00.000> have<00:12:00.120> the<00:12:00.300> first 00:12:00.410 --> 00:12:00.420 align:start position:0% liquidity pool we have the first 00:12:00.420 --> 00:12:02.810 align:start position:0% liquidity pool we have the first criteria<00:12:00.839> which<00:12:01.019> is<00:12:01.140> a<00:12:01.260> fake<00:12:01.620> Market<00:12:01.860> we<00:12:02.700> then 00:12:02.810 --> 00:12:02.820 align:start position:0% criteria which is a fake Market we then 00:12:02.820 --> 00:12:04.490 align:start position:0% criteria which is a fake Market we then go<00:12:03.000> ahead<00:12:03.240> and<00:12:03.480> now<00:12:03.600> trying<00:12:03.839> to<00:12:04.019> find<00:12:04.200> a 00:12:04.490 --> 00:12:04.500 align:start position:0% go ahead and now trying to find a 00:12:04.500 --> 00:12:07.370 align:start position:0% go ahead and now trying to find a settlement<00:12:04.940> in<00:12:05.940> which<00:12:06.180> ordering<00:12:06.899> doesn't 00:12:07.370 --> 00:12:07.380 align:start position:0% settlement in which ordering doesn't 00:12:07.380 --> 00:12:10.310 align:start position:0% settlement in which ordering doesn't make<00:12:07.680> any<00:12:08.040> difference<00:12:08.279> in<00:12:09.120> which<00:12:09.300> all<00:12:10.019> at 00:12:10.310 --> 00:12:10.320 align:start position:0% make any difference in which all at 00:12:10.320 --> 00:12:12.530 align:start position:0% make any difference in which all at least<00:12:10.440> all<00:12:10.560> user<00:12:10.980> trades<00:12:11.339> are<00:12:11.940> executed 00:12:12.530 --> 00:12:12.540 align:start position:0% least all user trades are executed 00:12:12.540 --> 00:12:15.949 align:start position:0% least all user trades are executed according<00:12:13.440> to<00:12:14.160> one<00:12:14.700> single<00:12:15.240> price<00:12:15.480> clearing 00:12:15.949 --> 00:12:15.959 align:start position:0% according to one single price clearing 00:12:15.959 --> 00:12:17.810 align:start position:0% according to one single price clearing Vector<00:12:16.320> where<00:12:16.740> each<00:12:16.980> asset<00:12:17.339> just<00:12:17.519> has<00:12:17.700> a 00:12:17.810 --> 00:12:17.820 align:start position:0% Vector where each asset just has a 00:12:17.820 --> 00:12:19.069 align:start position:0% Vector where each asset just has a single<00:12:18.060> price 00:12:19.069 --> 00:12:19.079 align:start position:0% single price 00:12:19.079 --> 00:12:21.170 align:start position:0% single price and<00:12:19.560> so<00:12:19.680> basically<00:12:19.980> we<00:12:20.220> want<00:12:20.339> to<00:12:20.519> find<00:12:20.700> a 00:12:21.170 --> 00:12:21.180 align:start position:0% and so basically we want to find a 00:12:21.180 --> 00:12:22.970 align:start position:0% and so basically we want to find a uniform<00:12:21.540> price<00:12:21.720> clearing<00:12:22.200> and<00:12:22.560> we<00:12:22.680> also<00:12:22.860> need 00:12:22.970 --> 00:12:22.980 align:start position:0% uniform price clearing and we also need 00:12:22.980 --> 00:12:25.250 align:start position:0% uniform price clearing and we also need to<00:12:23.100> find<00:12:23.220> a<00:12:23.459> concrete<00:12:23.820> execution<00:12:24.240> path<00:12:24.660> so 00:12:25.250 --> 00:12:25.260 align:start position:0% to find a concrete execution path so 00:12:25.260 --> 00:12:26.990 align:start position:0% to find a concrete execution path so basically<00:12:25.620> meaning<00:12:25.860> where<00:12:26.339> do<00:12:26.519> the<00:12:26.700> tokens 00:12:26.990 --> 00:12:27.000 align:start position:0% basically meaning where do the tokens 00:12:27.000 --> 00:12:30.530 align:start position:0% basically meaning where do the tokens flow<00:12:27.420> so<00:12:27.899> that<00:12:28.140> demand<00:12:28.740> Supply<00:12:29.579> equal<00:12:30.060> and 00:12:30.530 --> 00:12:30.540 align:start position:0% flow so that demand Supply equal and 00:12:30.540 --> 00:12:31.910 align:start position:0% flow so that demand Supply equal and basically<00:12:30.839> that<00:12:31.019> we<00:12:31.140> reach<00:12:31.320> an<00:12:31.440> equilibrium 00:12:31.910 --> 00:12:31.920 align:start position:0% basically that we reach an equilibrium 00:12:31.920 --> 00:12:34.370 align:start position:0% basically that we reach an equilibrium in<00:12:32.579> this<00:12:32.700> case<00:12:32.820> for<00:12:33.060> example<00:12:33.300> the<00:12:33.660> maker<00:12:34.079> token 00:12:34.370 --> 00:12:34.380 align:start position:0% in this case for example the maker token 00:12:34.380 --> 00:12:35.810 align:start position:0% in this case for example the maker token that<00:12:34.560> the<00:12:34.740> first<00:12:34.800> user<00:12:35.160> wanted<00:12:35.279> to<00:12:35.459> sell<00:12:35.579> would 00:12:35.810 --> 00:12:35.820 align:start position:0% that the first user wanted to sell would 00:12:35.820 --> 00:12:37.910 align:start position:0% that the first user wanted to sell would flow<00:12:36.120> directly<00:12:36.420> to<00:12:36.540> another<00:12:36.720> user<00:12:37.140> that<00:12:37.620> user 00:12:37.910 --> 00:12:37.920 align:start position:0% flow directly to another user that user 00:12:37.920 --> 00:12:40.130 align:start position:0% flow directly to another user that user would<00:12:38.100> sell<00:12:38.279> their<00:12:38.519> usdc<00:12:39.120> maybe<00:12:39.360> on<00:12:39.600> curve<00:12:39.959> to 00:12:40.130 --> 00:12:40.140 align:start position:0% would sell their usdc maybe on curve to 00:12:40.140 --> 00:12:41.930 align:start position:0% would sell their usdc maybe on curve to die<00:12:40.380> and<00:12:40.740> then<00:12:40.800> sell<00:12:41.040> it<00:12:41.160> to<00:12:41.279> give<00:12:41.579> it<00:12:41.700> to<00:12:41.820> the 00:12:41.930 --> 00:12:41.940 align:start position:0% die and then sell it to give it to the 00:12:41.940 --> 00:12:44.509 align:start position:0% die and then sell it to give it to the third<00:12:42.060> user<00:12:42.420> and<00:12:42.779> so<00:12:42.959> we<00:12:43.139> can<00:12:43.320> in<00:12:44.100> so-called 00:12:44.509 --> 00:12:44.519 align:start position:0% third user and so we can in so-called 00:12:44.519 --> 00:12:46.790 align:start position:0% third user and so we can in so-called ring<00:12:44.820> trades<00:12:45.180> mix<00:12:45.420> and<00:12:45.660> match<00:12:45.839> amms<00:12:46.620> together 00:12:46.790 --> 00:12:46.800 align:start position:0% ring trades mix and match amms together 00:12:46.800 --> 00:12:50.629 align:start position:0% ring trades mix and match amms together with<00:12:47.300> direct<00:12:48.300> peer-to-peer<00:12:49.139> trading<00:12:50.040> with 00:12:50.629 --> 00:12:50.639 align:start position:0% with direct peer-to-peer trading with 00:12:50.639 --> 00:12:52.550 align:start position:0% with direct peer-to-peer trading with the<00:12:50.820> only<00:12:50.940> basically<00:12:51.600> the<00:12:51.779> only<00:12:51.959> credit<00:12:52.200> the 00:12:52.550 --> 00:12:52.560 align:start position:0% the only basically the only credit the 00:12:52.560 --> 00:12:53.930 align:start position:0% the only basically the only credit the only<00:12:52.620> constraint<00:12:52.980> that<00:12:53.279> everything<00:12:53.459> has<00:12:53.760> to 00:12:53.930 --> 00:12:53.940 align:start position:0% only constraint that everything has to 00:12:53.940 --> 00:12:55.610 align:start position:0% only constraint that everything has to happen<00:12:54.120> at<00:12:54.839> least<00:12:54.959> everything<00:12:55.139> between<00:12:55.380> those 00:12:55.610 --> 00:12:55.620 align:start position:0% happen at least everything between those 00:12:55.620 --> 00:12:57.530 align:start position:0% happen at least everything between those hands<00:12:55.980> has<00:12:56.100> to<00:12:56.279> happen<00:12:56.399> at<00:12:56.880> this<00:12:57.120> uniform 00:12:57.530 --> 00:12:57.540 align:start position:0% hands has to happen at this uniform 00:12:57.540 --> 00:12:59.509 align:start position:0% hands has to happen at this uniform price<00:12:57.779> Cream<00:12:58.019> now<00:12:58.680> the<00:12:58.860> problem<00:12:58.980> is<00:12:59.220> that<00:12:59.339> this 00:12:59.509 --> 00:12:59.519 align:start position:0% price Cream now the problem is that this 00:12:59.519 --> 00:13:01.250 align:start position:0% price Cream now the problem is that this poses<00:12:59.940> a<00:13:00.240> pretty<00:13:00.540> hard 00:13:01.250 --> 00:13:01.260 align:start position:0% poses a pretty hard 00:13:01.260 --> 00:13:03.170 align:start position:0% poses a pretty hard optimization<00:13:02.160> problem<00:13:02.339> it's<00:13:02.639> basically<00:13:02.940> an 00:13:03.170 --> 00:13:03.180 align:start position:0% optimization problem it's basically an 00:13:03.180 --> 00:13:04.730 align:start position:0% optimization problem it's basically an NP<00:13:03.420> art<00:13:03.600> problem<00:13:03.839> because<00:13:04.079> we're<00:13:04.320> acting<00:13:04.620> over 00:13:04.730 --> 00:13:04.740 align:start position:0% NP art problem because we're acting over 00:13:04.740 --> 00:13:06.350 align:start position:0% NP art problem because we're acting over multiple<00:13:05.160> Dimensions<00:13:05.579> not<00:13:05.820> just<00:13:06.000> on<00:13:06.240> a 00:13:06.350 --> 00:13:06.360 align:start position:0% multiple Dimensions not just on a 00:13:06.360 --> 00:13:09.110 align:start position:0% multiple Dimensions not just on a two-dimensional<00:13:06.959> order<00:13:07.139> book<00:13:07.860> but<00:13:08.399> this 00:13:09.110 --> 00:13:09.120 align:start position:0% two-dimensional order book but this 00:13:09.120 --> 00:13:11.690 align:start position:0% two-dimensional order book but this problem<00:13:09.360> can<00:13:09.720> be<00:13:09.899> quite<00:13:10.260> well<00:13:10.700> approximated 00:13:11.690 --> 00:13:11.700 align:start position:0% problem can be quite well approximated 00:13:11.700 --> 00:13:13.490 align:start position:0% problem can be quite well approximated or<00:13:11.940> the<00:13:12.060> optimal<00:13:12.360> solution<00:13:12.660> can<00:13:12.839> be<00:13:12.959> quite 00:13:13.490 --> 00:13:13.500 align:start position:0% or the optimal solution can be quite 00:13:13.500 --> 00:13:15.410 align:start position:0% or the optimal solution can be quite well<00:13:13.620> approximated<00:13:14.160> if<00:13:14.519> we<00:13:14.639> just<00:13:14.820> maximize 00:13:15.410 --> 00:13:15.420 align:start position:0% well approximated if we just maximize 00:13:15.420 --> 00:13:18.769 align:start position:0% well approximated if we just maximize the<00:13:15.779> total<00:13:16.079> user<00:13:16.440> Surplus<00:13:16.880> user<00:13:17.880> Surplus<00:13:18.300> is 00:13:18.769 --> 00:13:18.779 align:start position:0% the total user Surplus user Surplus is 00:13:18.779 --> 00:13:20.449 align:start position:0% the total user Surplus user Surplus is basically<00:13:19.139> the<00:13:19.500> price<00:13:19.680> Improvement<00:13:20.100> you<00:13:20.279> get 00:13:20.449 --> 00:13:20.459 align:start position:0% basically the price Improvement you get 00:13:20.459 --> 00:13:22.550 align:start position:0% basically the price Improvement you get on<00:13:20.579> the<00:13:20.700> user's<00:13:21.000> limit<00:13:21.120> price<00:13:21.420> so<00:13:22.019> the<00:13:22.260> user 00:13:22.550 --> 00:13:22.560 align:start position:0% on the user's limit price so the user 00:13:22.560 --> 00:13:24.110 align:start position:0% on the user's limit price so the user was<00:13:22.680> willing<00:13:22.980> to<00:13:23.100> buy<00:13:23.279> either<00:13:23.519> at<00:13:23.760> thirteen 00:13:24.110 --> 00:13:24.120 align:start position:0% was willing to buy either at thirteen 00:13:24.120 --> 00:13:25.490 align:start position:0% was willing to buy either at thirteen hundred<00:13:24.360> dollars<00:13:24.540> and<00:13:24.839> you<00:13:25.019> were<00:13:25.139> delivering 00:13:25.490 --> 00:13:25.500 align:start position:0% hundred dollars and you were delivering 00:13:25.500 --> 00:13:27.710 align:start position:0% hundred dollars and you were delivering it<00:13:25.680> at<00:13:25.800> 12.50<00:13:26.339> you<00:13:26.880> would<00:13:26.940> have<00:13:27.060> given<00:13:27.300> fifty 00:13:27.710 --> 00:13:27.720 align:start position:0% it at 12.50 you would have given fifty 00:13:27.720 --> 00:13:30.110 align:start position:0% it at 12.50 you would have given fifty dollars<00:13:28.019> of<00:13:28.200> surplus<00:13:28.680> to<00:13:28.920> that<00:13:29.040> user<00:13:29.399> and<00:13:30.000> if 00:13:30.110 --> 00:13:30.120 align:start position:0% dollars of surplus to that user and if 00:13:30.120 --> 00:13:31.790 align:start position:0% dollars of surplus to that user and if we<00:13:30.240> sum<00:13:30.420> all<00:13:30.600> the<00:13:30.779> surpluses<00:13:31.200> up<00:13:31.320> together<00:13:31.500> we 00:13:31.790 --> 00:13:31.800 align:start position:0% we sum all the surpluses up together we 00:13:31.800 --> 00:13:35.150 align:start position:0% we sum all the surpluses up together we get<00:13:31.920> one<00:13:32.339> value<00:13:32.579> which<00:13:33.420> we<00:13:33.720> can<00:13:33.839> optimize<00:13:34.200> for 00:13:35.150 --> 00:13:35.160 align:start position:0% get one value which we can optimize for 00:13:35.160 --> 00:13:36.790 align:start position:0% get one value which we can optimize for and<00:13:35.639> by<00:13:35.820> having<00:13:36.000> this<00:13:36.240> optimization 00:13:36.790 --> 00:13:36.800 align:start position:0% and by having this optimization 00:13:36.800 --> 00:13:39.650 align:start position:0% and by having this optimization Criterion<00:13:37.800> we<00:13:38.399> can<00:13:38.579> now 00:13:39.650 --> 00:13:39.660 align:start position:0% Criterion we can now 00:13:39.660 --> 00:13:42.829 align:start position:0% Criterion we can now dispatch<00:13:40.560> this<00:13:41.160> hard<00:13:41.339> problem<00:13:41.639> to<00:13:42.480> a<00:13:42.660> network 00:13:42.829 --> 00:13:42.839 align:start position:0% dispatch this hard problem to a network 00:13:42.839 --> 00:13:45.050 align:start position:0% dispatch this hard problem to a network of<00:13:43.380> what<00:13:43.620> we<00:13:43.740> originally<00:13:44.040> called<00:13:44.279> solvers<00:13:44.880> now 00:13:45.050 --> 00:13:45.060 align:start position:0% of what we originally called solvers now 00:13:45.060 --> 00:13:46.550 align:start position:0% of what we originally called solvers now we're<00:13:45.240> starting<00:13:45.480> to<00:13:45.600> call<00:13:45.720> it<00:13:45.839> batch<00:13:46.019> Builders 00:13:46.550 --> 00:13:46.560 align:start position:0% we're starting to call it batch Builders 00:13:46.560 --> 00:13:48.829 align:start position:0% we're starting to call it batch Builders we're<00:13:47.160> basically<00:13:47.519> tasked<00:13:48.060> to<00:13:48.240> try<00:13:48.480> to<00:13:48.600> find 00:13:48.829 --> 00:13:48.839 align:start position:0% we're basically tasked to try to find 00:13:48.839 --> 00:13:50.750 align:start position:0% we're basically tasked to try to find the<00:13:49.260> most<00:13:49.440> optimal<00:13:50.100> solution<00:13:50.399> to<00:13:50.579> this 00:13:50.750 --> 00:13:50.760 align:start position:0% the most optimal solution to this 00:13:50.760 --> 00:13:51.710 align:start position:0% the most optimal solution to this problem 00:13:51.710 --> 00:13:51.720 align:start position:0% problem 00:13:51.720 --> 00:13:53.210 align:start position:0% problem and<00:13:52.079> they<00:13:52.200> could<00:13:52.320> employ<00:13:52.560> it<00:13:52.800> very<00:13:53.040> different 00:13:53.210 --> 00:13:53.220 align:start position:0% and they could employ it very different 00:13:53.220 --> 00:13:55.730 align:start position:0% and they could employ it very different strategies<00:13:53.880> or<00:13:54.120> heuristics<00:13:54.720> here<00:13:55.200> we<00:13:55.380> saw<00:13:55.560> the 00:13:55.730 --> 00:13:55.740 align:start position:0% strategies or heuristics here we saw the 00:13:55.740 --> 00:13:56.930 align:start position:0% strategies or heuristics here we saw the the<00:13:55.860> settlement<00:13:56.220> from<00:13:56.459> the<00:13:56.579> from<00:13:56.820> the 00:13:56.930 --> 00:13:56.940 align:start position:0% the settlement from the from the 00:13:56.940 --> 00:13:58.190 align:start position:0% the settlement from the from the previous<00:13:57.120> slide<00:13:57.480> but<00:13:57.720> you<00:13:57.839> could<00:13:57.899> have<00:13:58.019> a 00:13:58.190 --> 00:13:58.200 align:start position:0% previous slide but you could have a 00:13:58.200 --> 00:13:59.569 align:start position:0% previous slide but you could have a solver<00:13:58.440> that<00:13:58.620> just<00:13:58.800> goes<00:13:59.040> and<00:13:59.220> tries<00:13:59.459> to 00:13:59.569 --> 00:13:59.579 align:start position:0% solver that just goes and tries to 00:13:59.579 --> 00:14:01.550 align:start position:0% solver that just goes and tries to settle<00:13:59.940> every<00:14:00.180> single<00:14:00.360> user<00:14:00.660> trade<00:14:00.959> with<00:14:01.440> the 00:14:01.550 --> 00:14:01.560 align:start position:0% settle every single user trade with the 00:14:01.560 --> 00:14:03.410 align:start position:0% settle every single user trade with the most<00:14:01.680> liquid<00:14:01.980> amm<00:14:02.399> on<00:14:02.519> that<00:14:02.639> pair 00:14:03.410 --> 00:14:03.420 align:start position:0% most liquid amm on that pair 00:14:03.420 --> 00:14:05.470 align:start position:0% most liquid amm on that pair but<00:14:03.839> by<00:14:04.019> virtue<00:14:04.320> of<00:14:04.440> having<00:14:04.560> this<00:14:04.800> approximate 00:14:05.470 --> 00:14:05.480 align:start position:0% but by virtue of having this approximate 00:14:05.480 --> 00:14:07.430 align:start position:0% but by virtue of having this approximate approximation<00:14:06.480> Criterion<00:14:06.899> optimization 00:14:07.430 --> 00:14:07.440 align:start position:0% approximation Criterion optimization 00:14:07.440 --> 00:14:10.069 align:start position:0% approximation Criterion optimization Criterion<00:14:07.920> we<00:14:08.639> can<00:14:08.760> now<00:14:09.000> rank<00:14:09.540> the<00:14:09.899> different 00:14:10.069 --> 00:14:10.079 align:start position:0% Criterion we can now rank the different 00:14:10.079 --> 00:14:12.590 align:start position:0% Criterion we can now rank the different solutions<00:14:10.680> and<00:14:11.459> find<00:14:11.639> the<00:14:11.880> one<00:14:12.000> that<00:14:12.180> settles 00:14:12.590 --> 00:14:12.600 align:start position:0% solutions and find the one that settles 00:14:12.600 --> 00:14:14.870 align:start position:0% solutions and find the one that settles the<00:14:12.720> user<00:14:12.959> trade<00:14:13.200> at<00:14:13.860> the<00:14:13.980> best<00:14:14.220> possible 00:14:14.870 --> 00:14:14.880 align:start position:0% the user trade at the best possible 00:14:14.880 --> 00:14:17.569 align:start position:0% the user trade at the best possible price<00:14:15.200> and<00:14:16.200> then<00:14:16.380> that<00:14:16.980> solution<00:14:17.220> will<00:14:17.459> get 00:14:17.569 --> 00:14:17.579 align:start position:0% price and then that solution will get 00:14:17.579 --> 00:14:19.069 align:start position:0% price and then that solution will get chosen<00:14:17.940> and<00:14:18.240> the<00:14:18.360> proposal<00:14:18.779> for<00:14:18.899> that 00:14:19.069 --> 00:14:19.079 align:start position:0% chosen and the proposal for that 00:14:19.079 --> 00:14:21.350 align:start position:0% chosen and the proposal for that solution<00:14:19.380> gets<00:14:20.040> a<00:14:20.100> protocol<00:14:20.339> reward 00:14:21.350 --> 00:14:21.360 align:start position:0% solution gets a protocol reward 00:14:21.360 --> 00:14:24.470 align:start position:0% solution gets a protocol reward and<00:14:21.839> so<00:14:22.019> we<00:14:22.200> kind<00:14:22.320> of<00:14:22.440> moved<00:14:22.800> into<00:14:22.920> a<00:14:23.480> consensus 00:14:24.470 --> 00:14:24.480 align:start position:0% and so we kind of moved into a consensus 00:14:24.480 --> 00:14:26.629 align:start position:0% and so we kind of moved into a consensus scheme<00:14:25.019> where<00:14:25.440> the<00:14:25.740> leader<00:14:25.980> selection<00:14:26.279> is<00:14:26.519> not 00:14:26.629 --> 00:14:26.639 align:start position:0% scheme where the leader selection is not 00:14:26.639 --> 00:14:28.610 align:start position:0% scheme where the leader selection is not based<00:14:26.940> on<00:14:27.000> work<00:14:27.180> not<00:14:27.480> based<00:14:27.839> on<00:14:27.899> stake<00:14:28.260> but 00:14:28.610 --> 00:14:28.620 align:start position:0% based on work not based on stake but 00:14:28.620 --> 00:14:30.470 align:start position:0% based on work not based on stake but based<00:14:29.100> on<00:14:29.220> optimality 00:14:30.470 --> 00:14:30.480 align:start position:0% based on optimality 00:14:30.480 --> 00:14:32.030 align:start position:0% based on optimality the<00:14:30.660> UI<00:14:30.959> looks<00:14:31.260> very<00:14:31.320> much<00:14:31.440> similar<00:14:31.740> to<00:14:31.860> what 00:14:32.030 --> 00:14:32.040 align:start position:0% the UI looks very much similar to what 00:14:32.040 --> 00:14:34.250 align:start position:0% the UI looks very much similar to what you<00:14:32.160> might<00:14:32.399> be<00:14:32.519> used<00:14:32.639> from<00:14:32.940> your<00:14:33.120> favorite<00:14:33.300> amm 00:14:34.250 --> 00:14:34.260 align:start position:0% you might be used from your favorite amm 00:14:34.260 --> 00:14:36.530 align:start position:0% you might be used from your favorite amm front<00:14:34.620> end<00:14:34.860> but<00:14:35.519> here's<00:14:35.820> an<00:14:35.940> example<00:14:36.240> of<00:14:36.420> a 00:14:36.530 --> 00:14:36.540 align:start position:0% front end but here's an example of a 00:14:36.540 --> 00:14:39.110 align:start position:0% front end but here's an example of a batch<00:14:36.720> that<00:14:37.019> we<00:14:37.200> saw<00:14:37.440> I<00:14:38.040> think<00:14:38.160> around<00:14:38.579> 20<00:14:38.880> days 00:14:39.110 --> 00:14:39.120 align:start position:0% batch that we saw I think around 20 days 00:14:39.120 --> 00:14:40.009 align:start position:0% batch that we saw I think around 20 days ago 00:14:40.009 --> 00:14:40.019 align:start position:0% ago 00:14:40.019 --> 00:14:42.769 align:start position:0% ago where<00:14:40.380> two<00:14:40.560> users<00:14:40.920> were<00:14:41.160> trading<00:14:41.699> in<00:14:42.540> the<00:14:42.660> same 00:14:42.769 --> 00:14:42.779 align:start position:0% where two users were trading in the same 00:14:42.779 --> 00:14:44.750 align:start position:0% where two users were trading in the same so<00:14:43.019> we<00:14:43.199> can<00:14:43.260> see<00:14:43.440> there's<00:14:43.680> one<00:14:44.100> high-level 00:14:44.750 --> 00:14:44.760 align:start position:0% so we can see there's one high-level 00:14:44.760 --> 00:14:47.090 align:start position:0% so we can see there's one high-level ethereum<00:14:45.180> transaction<00:14:45.660> but<00:14:46.320> in<00:14:46.560> that<00:14:46.740> single 00:14:47.090 --> 00:14:47.100 align:start position:0% ethereum transaction but in that single 00:14:47.100 --> 00:14:51.050 align:start position:0% ethereum transaction but in that single transaction<00:14:47.459> we<00:14:48.060> have<00:14:48.300> two<00:14:49.079> people<00:14:49.320> Trading 00:14:51.050 --> 00:14:51.060 align:start position:0% transaction we have two people Trading 00:14:51.060 --> 00:14:53.389 align:start position:0% transaction we have two people Trading two<00:14:51.959> trade<00:14:52.199> intents<00:14:52.620> so<00:14:52.800> we<00:14:52.980> have<00:14:53.100> one<00:14:53.279> person 00:14:53.389 --> 00:14:53.399 align:start position:0% two trade intents so we have one person 00:14:53.399 --> 00:14:55.009 align:start position:0% two trade intents so we have one person that<00:14:53.699> is<00:14:53.820> selling<00:14:54.060> the<00:14:54.180> manifold<00:14:54.540> token<00:14:54.899> and 00:14:55.009 --> 00:14:55.019 align:start position:0% that is selling the manifold token and 00:14:55.019 --> 00:14:56.150 align:start position:0% that is selling the manifold token and another<00:14:55.199> person<00:14:55.500> that<00:14:55.680> is<00:14:55.800> buying<00:14:56.040> the 00:14:56.150 --> 00:14:56.160 align:start position:0% another person that is buying the 00:14:56.160 --> 00:14:58.069 align:start position:0% another person that is buying the manifold<00:14:56.519> token<00:14:56.880> and<00:14:57.480> the<00:14:57.660> first<00:14:57.720> thing<00:14:57.899> to 00:14:58.069 --> 00:14:58.079 align:start position:0% manifold token and the first thing to 00:14:58.079 --> 00:15:00.110 align:start position:0% manifold token and the first thing to notice<00:14:58.260> here<00:14:58.440> is<00:14:58.620> that<00:14:58.800> both<00:14:58.980> people<00:14:59.339> were 00:15:00.110 --> 00:15:00.120 align:start position:0% notice here is that both people were 00:15:00.120 --> 00:15:01.790 align:start position:0% notice here is that both people were executed<00:15:00.540> at<00:15:00.720> the<00:15:00.899> exact<00:15:01.199> same<00:15:01.440> clearing 00:15:01.790 --> 00:15:01.800 align:start position:0% executed at the exact same clearing 00:15:01.800 --> 00:15:04.370 align:start position:0% executed at the exact same clearing price<00:15:02.040> whereas<00:15:02.880> if<00:15:03.120> they<00:15:03.240> had<00:15:03.420> gone<00:15:03.660> through<00:15:04.139> a 00:15:04.370 --> 00:15:04.380 align:start position:0% price whereas if they had gone through a 00:15:04.380 --> 00:15:06.170 align:start position:0% price whereas if they had gone through a more<00:15:04.560> traditional<00:15:04.860> Dex<00:15:05.160> mechanism<00:15:05.519> one<00:15:06.120> of 00:15:06.170 --> 00:15:06.180 align:start position:0% more traditional Dex mechanism one of 00:15:06.180 --> 00:15:08.629 align:start position:0% more traditional Dex mechanism one of them<00:15:06.300> would<00:15:06.600> have<00:15:06.839> to<00:15:07.320> go<00:15:07.800> first<00:15:08.040> and<00:15:08.399> get<00:15:08.519> a 00:15:08.629 --> 00:15:08.639 align:start position:0% them would have to go first and get a 00:15:08.639 --> 00:15:10.250 align:start position:0% them would have to go first and get a different<00:15:08.760> price<00:15:09.000> than<00:15:09.240> the<00:15:09.420> second<00:15:09.600> one<00:15:09.779> in 00:15:10.250 --> 00:15:10.260 align:start position:0% different price than the second one in 00:15:10.260 --> 00:15:11.449 align:start position:0% different price than the second one in this<00:15:10.380> case<00:15:10.500> it<00:15:10.620> was<00:15:10.800> actually<00:15:10.920> better<00:15:11.160> to<00:15:11.339> be 00:15:11.449 --> 00:15:11.459 align:start position:0% this case it was actually better to be 00:15:11.459 --> 00:15:12.949 align:start position:0% this case it was actually better to be the<00:15:11.579> second<00:15:11.699> because<00:15:12.000> the<00:15:12.300> prices<00:15:12.420> the<00:15:12.779> the 00:15:12.949 --> 00:15:12.959 align:start position:0% the second because the prices the the 00:15:12.959 --> 00:15:14.329 align:start position:0% the second because the prices the the trades<00:15:13.260> were<00:15:13.380> against<00:15:13.560> one<00:15:13.740> another<00:15:13.920> so<00:15:14.220> you 00:15:14.329 --> 00:15:14.339 align:start position:0% trades were against one another so you 00:15:14.339 --> 00:15:17.090 align:start position:0% trades were against one another so you want<00:15:14.459> to<00:15:14.639> First<00:15:14.820> have<00:15:15.420> the<00:15:15.779> the<00:15:16.680> other<00:15:16.920> person 00:15:17.090 --> 00:15:17.100 align:start position:0% want to First have the the other person 00:15:17.100 --> 00:15:18.710 align:start position:0% want to First have the the other person move<00:15:17.399> the<00:15:17.639> price<00:15:17.760> in<00:15:18.000> your<00:15:18.120> favor<00:15:18.300> and<00:15:18.540> then 00:15:18.710 --> 00:15:18.720 align:start position:0% move the price in your favor and then 00:15:18.720 --> 00:15:21.110 align:start position:0% move the price in your favor and then trade<00:15:18.959> but<00:15:19.740> basically<00:15:20.040> by<00:15:20.279> matching<00:15:20.699> those<00:15:20.880> at 00:15:21.110 --> 00:15:21.120 align:start position:0% trade but basically by matching those at 00:15:21.120 --> 00:15:22.610 align:start position:0% trade but basically by matching those at a<00:15:21.300> single<00:15:21.480> uniform<00:15:21.839> clearing<00:15:22.199> price<00:15:22.380> we 00:15:22.610 --> 00:15:22.620 align:start position:0% a single uniform clearing price we 00:15:22.620 --> 00:15:24.170 align:start position:0% a single uniform clearing price we removed<00:15:22.980> all<00:15:23.160> the<00:15:23.279> games<00:15:23.399> that<00:15:23.760> the<00:15:23.880> people<00:15:24.000> in 00:15:24.170 --> 00:15:24.180 align:start position:0% removed all the games that the people in 00:15:24.180 --> 00:15:25.370 align:start position:0% removed all the games that the people in the<00:15:24.300> batch<00:15:24.420> could<00:15:24.720> have<00:15:24.779> played<00:15:25.019> against<00:15:25.139> one 00:15:25.370 --> 00:15:25.380 align:start position:0% the batch could have played against one 00:15:25.380 --> 00:15:26.870 align:start position:0% the batch could have played against one another<00:15:25.560> and<00:15:25.860> made<00:15:26.040> the<00:15:26.160> system<00:15:26.339> more<00:15:26.699> simple 00:15:26.870 --> 00:15:26.880 align:start position:0% another and made the system more simple 00:15:26.880 --> 00:15:29.269 align:start position:0% another and made the system more simple fair<00:15:27.420> and<00:15:27.720> safe<00:15:27.899> to<00:15:28.139> reason<00:15:28.320> about<00:15:28.560> the<00:15:29.220> other 00:15:29.269 --> 00:15:29.279 align:start position:0% fair and safe to reason about the other 00:15:29.279 --> 00:15:31.490 align:start position:0% fair and safe to reason about the other thing<00:15:29.519> that<00:15:29.639> is<00:15:29.820> cool<00:15:30.000> is<00:15:30.300> that<00:15:30.480> because<00:15:30.779> these 00:15:31.490 --> 00:15:31.500 align:start position:0% thing that is cool is that because these 00:15:31.500 --> 00:15:33.110 align:start position:0% thing that is cool is that because these tokens<00:15:31.800> were<00:15:31.980> traded<00:15:32.399> exactly<00:15:32.820> in<00:15:33.000> the 00:15:33.110 --> 00:15:33.120 align:start position:0% tokens were traded exactly in the 00:15:33.120 --> 00:15:35.150 align:start position:0% tokens were traded exactly in the opposite<00:15:33.420> direction<00:15:33.660> which<00:15:34.560> is<00:15:34.620> what<00:15:34.860> we<00:15:34.980> call 00:15:35.150 --> 00:15:35.160 align:start position:0% opposite direction which is what we call 00:15:35.160 --> 00:15:37.850 align:start position:0% opposite direction which is what we call a<00:15:35.519> coincidence<00:15:36.240> of<00:15:36.480> once<00:15:36.899> you<00:15:37.260> want<00:15:37.440> the<00:15:37.620> exact 00:15:37.850 --> 00:15:37.860 align:start position:0% a coincidence of once you want the exact 00:15:37.860 --> 00:15:40.129 align:start position:0% a coincidence of once you want the exact opposite<00:15:38.220> of<00:15:38.399> what<00:15:38.579> I<00:15:38.760> have<00:15:39.360> we<00:15:39.959> actually 00:15:40.129 --> 00:15:40.139 align:start position:0% opposite of what I have we actually 00:15:40.139 --> 00:15:42.530 align:start position:0% opposite of what I have we actually saved<00:15:40.740> about<00:15:40.920> forty<00:15:41.579> thousand<00:15:41.940> dollars<00:15:42.240> in 00:15:42.530 --> 00:15:42.540 align:start position:0% saved about forty thousand dollars in 00:15:42.540 --> 00:15:44.030 align:start position:0% saved about forty thousand dollars in trading<00:15:42.839> volume<00:15:43.019> that<00:15:43.380> we<00:15:43.500> didn't<00:15:43.620> have<00:15:43.860> to 00:15:44.030 --> 00:15:44.040 align:start position:0% trading volume that we didn't have to 00:15:44.040 --> 00:15:45.889 align:start position:0% trading volume that we didn't have to send<00:15:44.160> to<00:15:44.339> UNI<00:15:44.639> swap<00:15:44.820> in<00:15:44.940> sushi<00:15:45.240> swap<00:15:45.540> because 00:15:45.889 --> 00:15:45.899 align:start position:0% send to UNI swap in sushi swap because 00:15:45.899 --> 00:15:46.970 align:start position:0% send to UNI swap in sushi swap because it<00:15:46.079> could<00:15:46.199> be<00:15:46.320> settled<00:15:46.680> directly 00:15:46.970 --> 00:15:46.980 align:start position:0% it could be settled directly 00:15:46.980 --> 00:15:49.250 align:start position:0% it could be settled directly peer-to-peer<00:15:47.639> so<00:15:48.240> here<00:15:48.420> we<00:15:48.600> have<00:15:48.720> one<00:15:49.079> person 00:15:49.250 --> 00:15:49.260 align:start position:0% peer-to-peer so here we have one person 00:15:49.260 --> 00:15:52.069 align:start position:0% peer-to-peer so here we have one person buying<00:15:49.740> 40<00:15:50.220> 000<00:15:50.279> UCC<00:15:50.699> and<00:15:51.060> one<00:15:51.240> person<00:15:51.420> selling 00:15:52.069 --> 00:15:52.079 align:start position:0% buying 40 000 UCC and one person selling 00:15:52.079 --> 00:15:55.730 align:start position:0% buying 40 000 UCC and one person selling uh<00:15:52.560> 48<00:15:53.220> 000<00:15:53.279> usdc<00:15:53.880> and<00:15:54.300> so<00:15:54.540> in<00:15:55.320> the<00:15:55.440> specific 00:15:55.730 --> 00:15:55.740 align:start position:0% uh 48 000 usdc and so in the specific 00:15:55.740 --> 00:15:57.710 align:start position:0% uh 48 000 usdc and so in the specific example<00:15:56.160> we<00:15:56.459> actually<00:15:56.579> not<00:15:56.880> only<00:15:57.000> got<00:15:57.240> fairer 00:15:57.710 --> 00:15:57.720 align:start position:0% example we actually not only got fairer 00:15:57.720 --> 00:15:59.689 align:start position:0% example we actually not only got fairer pricing<00:15:58.019> we<00:15:58.260> also<00:15:58.500> got<00:15:58.680> a<00:15:58.980> structural<00:15:59.399> price 00:15:59.689 --> 00:15:59.699 align:start position:0% pricing we also got a structural price 00:15:59.699 --> 00:16:02.030 align:start position:0% pricing we also got a structural price Improvement<00:16:00.180> that<00:16:00.420> only<00:16:00.860> batching<00:16:01.860> people 00:16:02.030 --> 00:16:02.040 align:start position:0% Improvement that only batching people 00:16:02.040 --> 00:16:03.710 align:start position:0% Improvement that only batching people together<00:16:02.279> and<00:16:02.579> trading<00:16:02.880> people<00:16:02.940> peer-to-peer 00:16:03.710 --> 00:16:03.720 align:start position:0% together and trading people peer-to-peer 00:16:03.720 --> 00:16:06.710 align:start position:0% together and trading people peer-to-peer can<00:16:04.560> accomplish<00:16:05.040> because<00:16:05.760> we<00:16:06.120> saved<00:16:06.420> so<00:16:06.540> much 00:16:06.710 --> 00:16:06.720 align:start position:0% can accomplish because we saved so much 00:16:06.720 --> 00:16:07.610 align:start position:0% can accomplish because we saved so much money 00:16:07.610 --> 00:16:07.620 align:start position:0% money 00:16:07.620 --> 00:16:09.889 align:start position:0% money um<00:16:07.680> that<00:16:08.399> didn't<00:16:08.579> have<00:16:08.760> to<00:16:08.820> go<00:16:08.940> to<00:16:09.060> the<00:16:09.180> amm<00:16:09.600> we 00:16:09.889 --> 00:16:09.899 align:start position:0% um that didn't have to go to the amm we 00:16:09.899 --> 00:16:12.889 align:start position:0% um that didn't have to go to the amm we saved<00:16:10.139> about<00:16:10.260> 800<00:16:10.800> in<00:16:11.339> reduced<00:16:11.699> LP<00:16:12.060> fees<00:16:12.420> and 00:16:12.889 --> 00:16:12.899 align:start position:0% saved about 800 in reduced LP fees and 00:16:12.899 --> 00:16:14.569 align:start position:0% saved about 800 in reduced LP fees and we<00:16:13.019> also<00:16:13.260> saved<00:16:13.560> about<00:16:13.680> one<00:16:14.100> thousand<00:16:14.459> five 00:16:14.569 --> 00:16:14.579 align:start position:0% we also saved about one thousand five 00:16:14.579 --> 00:16:16.129 align:start position:0% we also saved about one thousand five hundred<00:16:14.820> dollars<00:16:15.060> in<00:16:15.240> reduced<00:16:15.600> price<00:16:15.720> impact 00:16:16.129 --> 00:16:16.139 align:start position:0% hundred dollars in reduced price impact 00:16:16.139 --> 00:16:18.170 align:start position:0% hundred dollars in reduced price impact which<00:16:16.620> stems<00:16:17.040> from<00:16:17.160> the<00:16:17.519> fact<00:16:17.579> when<00:16:17.820> you<00:16:18.000> trade 00:16:18.170 --> 00:16:18.180 align:start position:0% which stems from the fact when you trade 00:16:18.180 --> 00:16:19.610 align:start position:0% which stems from the fact when you trade against<00:16:18.360> an<00:16:18.600> amm<00:16:18.959> you're<00:16:19.079> moving<00:16:19.380> the<00:16:19.500> price 00:16:19.610 --> 00:16:19.620 align:start position:0% against an amm you're moving the price 00:16:19.620 --> 00:16:21.230 align:start position:0% against an amm you're moving the price up<00:16:19.800> and<00:16:20.100> then<00:16:20.160> when<00:16:20.339> you<00:16:20.459> sell<00:16:20.579> against<00:16:20.820> it<00:16:21.060> you 00:16:21.230 --> 00:16:21.240 align:start position:0% up and then when you sell against it you 00:16:21.240 --> 00:16:23.389 align:start position:0% up and then when you sell against it you will<00:16:21.360> move<00:16:21.540> the<00:16:21.720> price<00:16:21.839> down<00:16:22.079> again<00:16:22.740> and<00:16:23.220> so 00:16:23.389 --> 00:16:23.399 align:start position:0% will move the price down again and so 00:16:23.399 --> 00:16:25.730 align:start position:0% will move the price down again and so this<00:16:23.579> is<00:16:23.699> how<00:16:24.000> the<00:16:24.420> the<00:16:24.660> solver<00:16:25.139> competition<00:16:25.440> I 00:16:25.730 --> 00:16:25.740 align:start position:0% this is how the the solver competition I 00:16:25.740 --> 00:16:27.470 align:start position:0% this is how the the solver competition I talked<00:16:25.980> about<00:16:26.040> is<00:16:26.399> looking<00:16:26.579> at<00:16:26.820> the<00:16:26.940> moment<00:16:27.060> we 00:16:27.470 --> 00:16:27.480 align:start position:0% talked about is looking at the moment we 00:16:27.480 --> 00:16:29.569 align:start position:0% talked about is looking at the moment we have<00:16:28.139> um<00:16:28.139> as<00:16:28.560> of<00:16:28.680> last<00:16:28.920> week<00:16:29.040> we<00:16:29.279> had<00:16:29.399> 12 00:16:29.569 --> 00:16:29.579 align:start position:0% have um as of last week we had 12 00:16:29.579 --> 00:16:31.189 align:start position:0% have um as of last week we had 12 servers<00:16:30.000> in<00:16:30.120> production<00:16:30.360> as<00:16:30.600> of<00:16:30.720> this<00:16:30.899> week<00:16:31.019> we 00:16:31.189 --> 00:16:31.199 align:start position:0% servers in production as of this week we 00:16:31.199 --> 00:16:32.750 align:start position:0% servers in production as of this week we have<00:16:31.320> 13<00:16:31.500> solvers<00:16:32.040> in<00:16:32.160> production<00:16:32.339> that<00:16:32.579> are 00:16:32.750 --> 00:16:32.760 align:start position:0% have 13 solvers in production that are 00:16:32.760 --> 00:16:34.910 align:start position:0% have 13 solvers in production that are competing<00:16:33.360> for<00:16:33.600> finding<00:16:34.260> the<00:16:34.380> best<00:16:34.560> solution 00:16:34.910 --> 00:16:34.920 align:start position:0% competing for finding the best solution 00:16:34.920 --> 00:16:37.610 align:start position:0% competing for finding the best solution so<00:16:35.579> we<00:16:35.760> actually<00:16:35.880> have<00:16:36.060> quite<00:16:36.360> a<00:16:37.019> um<00:16:37.139> yeah 00:16:37.610 --> 00:16:37.620 align:start position:0% so we actually have quite a um yeah 00:16:37.620 --> 00:16:39.530 align:start position:0% so we actually have quite a um yeah quite<00:16:37.920> a<00:16:38.100> quite<00:16:38.459> a 00:16:39.530 --> 00:16:39.540 align:start position:0% quite a quite a 00:16:39.540 --> 00:16:41.990 align:start position:0% quite a quite a um<00:16:39.800> heterogeneous<00:16:40.800> landscape<00:16:41.279> of<00:16:41.820> different 00:16:41.990 --> 00:16:42.000 align:start position:0% um heterogeneous landscape of different 00:16:42.000 --> 00:16:44.269 align:start position:0% um heterogeneous landscape of different different<00:16:42.540> solver<00:16:43.259> entities 00:16:44.269 --> 00:16:44.279 align:start position:0% different solver entities 00:16:44.279 --> 00:16:46.490 align:start position:0% different solver entities and<00:16:44.759> then<00:16:44.940> there's<00:16:45.420> a<00:16:45.839> an<00:16:46.199> entire 00:16:46.490 --> 00:16:46.500 align:start position:0% and then there's a an entire 00:16:46.500 --> 00:16:48.110 align:start position:0% and then there's a an entire presentation<00:16:47.040> from<00:16:47.399> our<00:16:47.519> data<00:16:47.820> engineer 00:16:48.110 --> 00:16:48.120 align:start position:0% presentation from our data engineer 00:16:48.120 --> 00:16:49.970 align:start position:0% presentation from our data engineer Ghent<00:16:48.839> um<00:16:48.839> that<00:16:49.019> was<00:16:49.139> given<00:16:49.380> at<00:16:49.500> depth<00:16:49.800> coin 00:16:49.970 --> 00:16:49.980 align:start position:0% Ghent um that was given at depth coin 00:16:49.980 --> 00:16:52.310 align:start position:0% Ghent um that was given at depth coin which<00:16:50.160> I<00:16:50.339> highly<00:16:50.579> recommend<00:16:50.880> watching<00:16:51.320> which 00:16:52.310 --> 00:16:52.320 align:start position:0% which I highly recommend watching which 00:16:52.320 --> 00:16:54.470 align:start position:0% which I highly recommend watching which compares<00:16:52.800> the<00:16:53.100> performance<00:16:53.459> of<00:16:53.699> cow<00:16:53.820> swap<00:16:54.240> in 00:16:54.470 --> 00:16:54.480 align:start position:0% compares the performance of cow swap in 00:16:54.480 --> 00:16:56.329 align:start position:0% compares the performance of cow swap in terms<00:16:54.720> of<00:16:54.779> how<00:16:55.440> much<00:16:55.560> slippage<00:16:56.040> can<00:16:56.220> we 00:16:56.329 --> 00:16:56.339 align:start position:0% terms of how much slippage can we 00:16:56.339 --> 00:16:57.590 align:start position:0% terms of how much slippage can we actually<00:16:56.519> or<00:16:56.820> yeah<00:16:57.120> how<00:16:57.300> much<00:16:57.420> of<00:16:57.480> the 00:16:57.590 --> 00:16:57.600 align:start position:0% actually or yeah how much of the 00:16:57.600 --> 00:16:58.910 align:start position:0% actually or yeah how much of the slippage<00:16:57.899> can<00:16:58.079> we<00:16:58.199> actually<00:16:58.380> give<00:16:58.560> back<00:16:58.800> to 00:16:58.910 --> 00:16:58.920 align:start position:0% slippage can we actually give back to 00:16:58.920 --> 00:17:00.710 align:start position:0% slippage can we actually give back to the<00:16:59.100> user<00:16:59.399> compared<00:16:59.940> to<00:17:00.060> other<00:17:00.360> Dex 00:17:00.710 --> 00:17:00.720 align:start position:0% the user compared to other Dex 00:17:00.720 --> 00:17:02.509 align:start position:0% the user compared to other Dex aggregators<00:17:01.199> in<00:17:01.380> the<00:17:01.500> space<00:17:01.620> and<00:17:02.100> we<00:17:02.220> can<00:17:02.339> show 00:17:02.509 --> 00:17:02.519 align:start position:0% aggregators in the space and we can show 00:17:02.519 --> 00:17:04.309 align:start position:0% aggregators in the space and we can show that<00:17:02.759> we<00:17:02.940> have<00:17:03.120> substantially<00:17:04.020> better 00:17:04.309 --> 00:17:04.319 align:start position:0% that we have substantially better 00:17:04.319 --> 00:17:06.049 align:start position:0% that we have substantially better performance<00:17:04.860> compared<00:17:05.400> to<00:17:05.520> some<00:17:05.819> of<00:17:05.939> the 00:17:06.049 --> 00:17:06.059 align:start position:0% performance compared to some of the 00:17:06.059 --> 00:17:07.789 align:start position:0% performance compared to some of the other<00:17:06.179> deck<00:17:06.720> segregators 00:17:07.789 --> 00:17:07.799 align:start position:0% other deck segregators 00:17:07.799 --> 00:17:09.949 align:start position:0% other deck segregators so<00:17:08.280> for<00:17:08.459> the<00:17:08.640> last<00:17:08.699> couple<00:17:08.880> of<00:17:09.059> minutes 00:17:09.949 --> 00:17:09.959 align:start position:0% so for the last couple of minutes 00:17:09.959 --> 00:17:11.150 align:start position:0% so for the last couple of minutes um I<00:17:10.199> want<00:17:10.260> to<00:17:10.380> talk<00:17:10.500> a<00:17:10.679> little<00:17:10.740> bit<00:17:10.860> about 00:17:11.150 --> 00:17:11.160 align:start position:0% um I want to talk a little bit about 00:17:11.160 --> 00:17:13.309 align:start position:0% um I want to talk a little bit about proposer<00:17:11.939> Builder<00:17:12.299> separation<00:17:12.660> or<00:17:13.020> kind<00:17:13.260> of 00:17:13.309 --> 00:17:13.319 align:start position:0% proposer Builder separation or kind of 00:17:13.319 --> 00:17:15.350 align:start position:0% proposer Builder separation or kind of the<00:17:13.559> general<00:17:13.740> direction<00:17:14.400> I<00:17:14.819> think<00:17:14.939> that<00:17:15.179> the 00:17:15.350 --> 00:17:15.360 align:start position:0% the general direction I think that the 00:17:15.360 --> 00:17:17.449 align:start position:0% the general direction I think that the ecosystem<00:17:15.780> is<00:17:16.020> taking<00:17:16.199> with<00:17:16.500> regards<00:17:16.860> to<00:17:16.919> Mev 00:17:17.449 --> 00:17:17.459 align:start position:0% ecosystem is taking with regards to Mev 00:17:17.459 --> 00:17:20.750 align:start position:0% ecosystem is taking with regards to Mev and<00:17:18.179> why<00:17:18.480> that<00:17:19.140> could<00:17:19.380> be<00:17:19.620> or<00:17:20.280> why<00:17:20.459> I<00:17:20.640> think 00:17:20.750 --> 00:17:20.760 align:start position:0% and why that could be or why I think 00:17:20.760 --> 00:17:22.069 align:start position:0% and why that could be or why I think this<00:17:20.880> is<00:17:21.000> dangerous<00:17:21.360> and<00:17:21.660> I<00:17:21.780> want<00:17:21.900> to<00:17:22.020> start 00:17:22.069 --> 00:17:22.079 align:start position:0% this is dangerous and I want to start 00:17:22.079 --> 00:17:25.549 align:start position:0% this is dangerous and I want to start this<00:17:22.319> by<00:17:22.679> quoting<00:17:23.400> one<00:17:23.520> of<00:17:23.699> my<00:17:24.240> um<00:17:24.299> favorite<00:17:24.720> uh 00:17:25.549 --> 00:17:25.559 align:start position:0% this by quoting one of my um favorite uh 00:17:25.559 --> 00:17:28.909 align:start position:0% this by quoting one of my um favorite uh columnists<00:17:26.339> the<00:17:26.640> money<00:17:27.179> stuff<00:17:27.480> BBC<00:17:28.020> writer 00:17:28.909 --> 00:17:28.919 align:start position:0% columnists the money stuff BBC writer 00:17:28.919 --> 00:17:30.890 align:start position:0% columnists the money stuff BBC writer Matt<00:17:29.040> Levine<00:17:29.460> who<00:17:29.700> is<00:17:29.880> from<00:17:30.480> time<00:17:30.600> to<00:17:30.720> time 00:17:30.890 --> 00:17:30.900 align:start position:0% Matt Levine who is from time to time 00:17:30.900 --> 00:17:33.350 align:start position:0% Matt Levine who is from time to time repeating<00:17:31.740> that<00:17:31.980> uh<00:17:32.280> well<00:17:32.580> cryptos<00:17:33.059> in<00:17:33.240> the 00:17:33.350 --> 00:17:33.360 align:start position:0% repeating that uh well cryptos in the 00:17:33.360 --> 00:17:34.970 align:start position:0% repeating that uh well cryptos in the business<00:17:33.419> of<00:17:33.720> constantly<00:17:34.080> rediscovering<00:17:34.799> the 00:17:34.970 --> 00:17:34.980 align:start position:0% business of constantly rediscovering the 00:17:34.980 --> 00:17:36.950 align:start position:0% business of constantly rediscovering the basic<00:17:35.220> ideas<00:17:35.400> of<00:17:35.760> financial<00:17:35.940> history<00:17:36.299> and<00:17:36.840> why 00:17:36.950 --> 00:17:36.960 align:start position:0% basic ideas of financial history and why 00:17:36.960 --> 00:17:38.390 align:start position:0% basic ideas of financial history and why this<00:17:37.140> I<00:17:37.380> think<00:17:37.500> this<00:17:37.620> is<00:17:37.799> true<00:17:37.980> specifically 00:17:38.390 --> 00:17:38.400 align:start position:0% this I think this is true specifically 00:17:38.400 --> 00:17:41.270 align:start position:0% this I think this is true specifically for<00:17:38.580> PBS<00:17:39.120> is<00:17:39.600> well<00:17:40.320> I'll<00:17:40.620> talk<00:17:40.860> about<00:17:41.039> this<00:17:41.160> in 00:17:41.270 --> 00:17:41.280 align:start position:0% for PBS is well I'll talk about this in 00:17:41.280 --> 00:17:43.190 align:start position:0% for PBS is well I'll talk about this in the<00:17:41.400> next<00:17:41.520> few<00:17:41.640> slides<00:17:41.940> but<00:17:42.179> you<00:17:42.960> might<00:17:43.020> have 00:17:43.190 --> 00:17:43.200 align:start position:0% the next few slides but you might have 00:17:43.200 --> 00:17:44.990 align:start position:0% the next few slides but you might have seen<00:17:43.380> this<00:17:43.559> graph<00:17:43.799> before<00:17:44.100> and<00:17:44.580> this<00:17:44.880> is 00:17:44.990 --> 00:17:45.000 align:start position:0% seen this graph before and this is 00:17:45.000 --> 00:17:46.970 align:start position:0% seen this graph before and this is basically<00:17:45.240> trying<00:17:45.539> to<00:17:45.660> resemble<00:17:46.320> the<00:17:46.500> Meb 00:17:46.970 --> 00:17:46.980 align:start position:0% basically trying to resemble the Meb 00:17:46.980 --> 00:17:49.370 align:start position:0% basically trying to resemble the Meb supply<00:17:47.220> chain<00:17:47.520> going<00:17:48.240> from<00:17:48.600> a<00:17:48.900> user<00:17:49.200> that 00:17:49.370 --> 00:17:49.380 align:start position:0% supply chain going from a user that 00:17:49.380 --> 00:17:51.110 align:start position:0% supply chain going from a user that wants<00:17:49.620> to<00:17:49.679> make<00:17:49.799> a<00:17:49.980> trade<00:17:50.220> and<00:17:50.760> the<00:17:50.940> trade 00:17:51.110 --> 00:17:51.120 align:start position:0% wants to make a trade and the trade 00:17:51.120 --> 00:17:52.789 align:start position:0% wants to make a trade and the trade being<00:17:51.299> something<00:17:51.600> like<00:17:51.840> I<00:17:52.080> want<00:17:52.200> to<00:17:52.320> sell<00:17:52.440> UCC 00:17:52.789 --> 00:17:52.799 align:start position:0% being something like I want to sell UCC 00:17:52.799 --> 00:17:55.190 align:start position:0% being something like I want to sell UCC for<00:17:53.100> Eve<00:17:53.400> opening<00:17:54.299> their<00:17:54.419> favorite<00:17:54.660> wallet<00:17:55.080> or 00:17:55.190 --> 00:17:55.200 align:start position:0% for Eve opening their favorite wallet or 00:17:55.200 --> 00:17:57.470 align:start position:0% for Eve opening their favorite wallet or opening<00:17:55.500> their<00:17:55.620> favorite<00:17:55.799> dab<00:17:56.700> which 00:17:57.470 --> 00:17:57.480 align:start position:0% opening their favorite dab which 00:17:57.480 --> 00:17:59.630 align:start position:0% opening their favorite dab which converts<00:17:57.960> that<00:17:58.260> trade<00:17:58.740> intent<00:17:59.100> into<00:17:59.340> a 00:17:59.630 --> 00:17:59.640 align:start position:0% converts that trade intent into a 00:17:59.640 --> 00:18:01.730 align:start position:0% converts that trade intent into a transaction<00:18:00.000> and<00:18:00.840> sends<00:18:01.200> that<00:18:01.380> transaction 00:18:01.730 --> 00:18:01.740 align:start position:0% transaction and sends that transaction 00:18:01.740 --> 00:18:04.789 align:start position:0% transaction and sends that transaction and<00:18:01.980> PBS<00:18:02.460> to<00:18:02.760> a<00:18:02.940> network<00:18:03.240> of<00:18:03.539> block<00:18:03.720> builders 00:18:04.789 --> 00:18:04.799 align:start position:0% and PBS to a network of block builders 00:18:04.799 --> 00:18:05.990 align:start position:0% and PBS to a network of block builders the<00:18:05.220> transaction<00:18:05.520> will<00:18:05.760> be<00:18:05.880> something 00:18:05.990 --> 00:18:06.000 align:start position:0% the transaction will be something 00:18:06.000 --> 00:18:08.390 align:start position:0% the transaction will be something concrete<00:18:06.480> like<00:18:06.660> use<00:18:07.200> uni<00:18:07.620> swap<00:18:07.860> to<00:18:08.039> sell<00:18:08.220> one 00:18:08.390 --> 00:18:08.400 align:start position:0% concrete like use uni swap to sell one 00:18:08.400 --> 00:18:10.010 align:start position:0% concrete like use uni swap to sell one thousand<00:18:08.700> dollars<00:18:08.940> for<00:18:09.179> example 00:18:10.010 --> 00:18:10.020 align:start position:0% thousand dollars for example 00:18:10.020 --> 00:18:12.110 align:start position:0% thousand dollars for example and<00:18:10.440> then<00:18:10.500> those<00:18:10.740> block<00:18:10.980> Builders<00:18:11.460> will<00:18:11.760> try 00:18:12.110 --> 00:18:12.120 align:start position:0% and then those block Builders will try 00:18:12.120 --> 00:18:14.570 align:start position:0% and then those block Builders will try to<00:18:12.660> collect<00:18:13.260> transactions<00:18:14.039> from<00:18:14.220> a<00:18:14.340> bunch<00:18:14.460> of 00:18:14.570 --> 00:18:14.580 align:start position:0% to collect transactions from a bunch of 00:18:14.580 --> 00:18:16.850 align:start position:0% to collect transactions from a bunch of different<00:18:14.760> places<00:18:15.000> and<00:18:15.480> propose<00:18:15.780> a<00:18:15.960> block<00:18:16.140> to 00:18:16.850 --> 00:18:16.860 align:start position:0% different places and propose a block to 00:18:16.860 --> 00:18:18.230 align:start position:0% different places and propose a block to the<00:18:17.100> actual<00:18:17.340> leader<00:18:17.580> of<00:18:17.700> the<00:18:17.820> consensus 00:18:18.230 --> 00:18:18.240 align:start position:0% the actual leader of the consensus 00:18:18.240 --> 00:18:20.029 align:start position:0% the actual leader of the consensus protocol<00:18:18.960> the<00:18:19.200> validator<00:18:19.620> for<00:18:19.799> the<00:18:19.919> next 00:18:20.029 --> 00:18:20.039 align:start position:0% protocol the validator for the next 00:18:20.039 --> 00:18:20.870 align:start position:0% protocol the validator for the next block 00:18:20.870 --> 00:18:20.880 align:start position:0% block 00:18:20.880 --> 00:18:22.370 align:start position:0% block and<00:18:21.179> so<00:18:21.299> the<00:18:21.419> validator<00:18:21.780> is<00:18:21.900> posed<00:18:22.200> with<00:18:22.260> a 00:18:22.370 --> 00:18:22.380 align:start position:0% and so the validator is posed with a 00:18:22.380 --> 00:18:23.930 align:start position:0% and so the validator is posed with a bunch<00:18:22.500> of<00:18:22.620> choices<00:18:22.860> or<00:18:23.039> blocks<00:18:23.400> that<00:18:23.520> they<00:18:23.820> can 00:18:23.930 --> 00:18:23.940 align:start position:0% bunch of choices or blocks that they can 00:18:23.940 --> 00:18:26.330 align:start position:0% bunch of choices or blocks that they can pick<00:18:24.059> from<00:18:24.360> and<00:18:25.080> basically<00:18:25.559> the<00:18:26.160> block 00:18:26.330 --> 00:18:26.340 align:start position:0% pick from and basically the block 00:18:26.340 --> 00:18:29.029 align:start position:0% pick from and basically the block Builders<00:18:26.880> are<00:18:27.360> bribing<00:18:28.260> the<00:18:28.380> block<00:18:28.500> proposer 00:18:29.029 --> 00:18:29.039 align:start position:0% Builders are bribing the block proposer 00:18:29.039 --> 00:18:31.070 align:start position:0% Builders are bribing the block proposer to<00:18:29.280> accept<00:18:29.400> their<00:18:29.760> block<00:18:30.000> by<00:18:30.539> doing<00:18:30.720> a<00:18:30.900> Max 00:18:31.070 --> 00:18:31.080 align:start position:0% to accept their block by doing a Max 00:18:31.080 --> 00:18:34.070 align:start position:0% to accept their block by doing a Max bidding<00:18:31.559> kind<00:18:32.220> of<00:18:32.340> War<00:18:32.520> this<00:18:33.120> meme<00:18:33.299> is<00:18:33.480> from<00:18:33.660> uh 00:18:34.070 --> 00:18:34.080 align:start position:0% bidding kind of War this meme is from uh 00:18:34.080 --> 00:18:37.490 align:start position:0% bidding kind of War this meme is from uh from<00:18:34.919> John<00:18:35.039> I<00:18:35.340> have<00:18:35.460> to<00:18:35.580> give<00:18:35.700> credits<00:18:36.419> um<00:18:36.960> so 00:18:37.490 --> 00:18:37.500 align:start position:0% from John I have to give credits um so 00:18:37.500 --> 00:18:38.870 align:start position:0% from John I have to give credits um so how<00:18:37.740> does<00:18:37.860> a<00:18:37.980> block<00:18:38.100> Builder<00:18:38.520> actually<00:18:38.640> get 00:18:38.870 --> 00:18:38.880 align:start position:0% how does a block Builder actually get 00:18:38.880 --> 00:18:40.549 align:start position:0% how does a block Builder actually get the<00:18:39.000> money<00:18:39.179> to<00:18:39.360> to<00:18:39.480> perform<00:18:39.660> this<00:18:39.960> bidding 00:18:40.549 --> 00:18:40.559 align:start position:0% the money to to perform this bidding 00:18:40.559 --> 00:18:43.130 align:start position:0% the money to to perform this bidding basically<00:18:41.400> block<00:18:41.640> Builders<00:18:42.120> try<00:18:42.660> to<00:18:42.840> extract 00:18:43.130 --> 00:18:43.140 align:start position:0% basically block Builders try to extract 00:18:43.140 --> 00:18:44.810 align:start position:0% basically block Builders try to extract as<00:18:43.440> much<00:18:43.559> Mev<00:18:44.039> from<00:18:44.220> the<00:18:44.340> transaction<00:18:44.580> order 00:18:44.810 --> 00:18:44.820 align:start position:0% as much Mev from the transaction order 00:18:44.820 --> 00:18:46.909 align:start position:0% as much Mev from the transaction order flow<00:18:45.059> they<00:18:45.299> they<00:18:45.539> get<00:18:45.960> and<00:18:46.260> then<00:18:46.380> pay<00:18:46.679> back 00:18:46.909 --> 00:18:46.919 align:start position:0% flow they they get and then pay back 00:18:46.919 --> 00:18:49.549 align:start position:0% flow they they get and then pay back some<00:18:47.520> or<00:18:47.760> most<00:18:47.940> of<00:18:48.059> that<00:18:48.240> uh<00:18:49.080> in<00:18:49.260> this<00:18:49.380> Max 00:18:49.549 --> 00:18:49.559 align:start position:0% some or most of that uh in this Max 00:18:49.559 --> 00:18:51.529 align:start position:0% some or most of that uh in this Max bidding<00:18:49.919> or<00:18:50.039> to<00:18:50.160> the<00:18:50.280> block<00:18:50.400> Builder<00:18:51.120> so<00:18:51.419> what 00:18:51.529 --> 00:18:51.539 align:start position:0% bidding or to the block Builder so what 00:18:51.539 --> 00:18:53.390 align:start position:0% bidding or to the block Builder so what might<00:18:51.660> a<00:18:51.840> block<00:18:51.960> Builder<00:18:52.380> do<00:18:52.559> in<00:18:52.799> order<00:18:52.919> to<00:18:53.160> get 00:18:53.390 --> 00:18:53.400 align:start position:0% might a block Builder do in order to get 00:18:53.400 --> 00:18:55.850 align:start position:0% might a block Builder do in order to get an<00:18:53.760> edge<00:18:53.940> in<00:18:54.360> this<00:18:54.480> game<00:18:54.660> well<00:18:55.320> they<00:18:55.500> might<00:18:55.679> try 00:18:55.850 --> 00:18:55.860 align:start position:0% an edge in this game well they might try 00:18:55.860 --> 00:18:57.830 align:start position:0% an edge in this game well they might try to<00:18:55.980> find<00:18:56.100> deals<00:18:56.640> with<00:18:56.880> wallets<00:18:57.240> to<00:18:57.720> get 00:18:57.830 --> 00:18:57.840 align:start position:0% to find deals with wallets to get 00:18:57.840 --> 00:19:00.110 align:start position:0% to find deals with wallets to get exclusive<00:18:58.380> access<00:18:58.620> to<00:18:58.860> order<00:18:59.039> flow<00:18:59.400> if<00:19:00.000> they 00:19:00.110 --> 00:19:00.120 align:start position:0% exclusive access to order flow if they 00:19:00.120 --> 00:19:01.850 align:start position:0% exclusive access to order flow if they are<00:19:00.299> the<00:19:00.419> only<00:19:00.539> one<00:19:00.660> who<00:19:00.840> can<00:19:01.020> extract<00:19:01.380> value 00:19:01.850 --> 00:19:01.860 align:start position:0% are the only one who can extract value 00:19:01.860 --> 00:19:03.770 align:start position:0% are the only one who can extract value or<00:19:02.160> even<00:19:02.340> just<00:19:02.580> you<00:19:02.940> know<00:19:03.000> pose<00:19:03.539> this 00:19:03.770 --> 00:19:03.780 align:start position:0% or even just you know pose this 00:19:03.780 --> 00:19:05.330 align:start position:0% or even just you know pose this transaction<00:19:04.140> for<00:19:04.440> its<00:19:04.620> transaction<00:19:04.919> fee<00:19:05.220> into 00:19:05.330 --> 00:19:05.340 align:start position:0% transaction for its transaction fee into 00:19:05.340 --> 00:19:07.430 align:start position:0% transaction for its transaction fee into the<00:19:05.640> block<00:19:05.820> that<00:19:06.059> they<00:19:06.240> propose<00:19:06.539> they<00:19:07.140> have<00:19:07.260> an 00:19:07.430 --> 00:19:07.440 align:start position:0% the block that they propose they have an 00:19:07.440 --> 00:19:09.590 align:start position:0% the block that they propose they have an advantage<00:19:07.679> over<00:19:07.860> other<00:19:08.100> block<00:19:08.340> builders 00:19:09.590 --> 00:19:09.600 align:start position:0% advantage over other block builders 00:19:09.600 --> 00:19:11.990 align:start position:0% advantage over other block builders and<00:19:10.080> so<00:19:10.200> it<00:19:10.320> could<00:19:10.500> be<00:19:10.620> that<00:19:10.980> the<00:19:11.460> buck<00:19:11.580> the<00:19:11.940> the 00:19:11.990 --> 00:19:12.000 align:start position:0% and so it could be that the buck the the 00:19:12.000 --> 00:19:14.210 align:start position:0% and so it could be that the buck the the flow<00:19:12.900> just<00:19:13.140> stops<00:19:13.500> here<00:19:13.620> wallets<00:19:14.039> are 00:19:14.210 --> 00:19:14.220 align:start position:0% flow just stops here wallets are 00:19:14.220 --> 00:19:15.409 align:start position:0% flow just stops here wallets are starting<00:19:14.340> to<00:19:14.520> receive<00:19:14.760> an<00:19:14.940> extra<00:19:15.059> income 00:19:15.409 --> 00:19:15.419 align:start position:0% starting to receive an extra income 00:19:15.419 --> 00:19:17.450 align:start position:0% starting to receive an extra income that's<00:19:15.600> nice<00:19:16.140> um<00:19:16.140> they<00:19:16.380> might<00:19:16.559> take<00:19:16.740> that<00:19:16.919> that 00:19:17.450 --> 00:19:17.460 align:start position:0% that's nice um they might take that that 00:19:17.460 --> 00:19:20.330 align:start position:0% that's nice um they might take that that would<00:19:17.700> be<00:19:17.880> very<00:19:18.320> terrible<00:19:19.320> for<00:19:19.559> the<00:19:19.679> user 00:19:20.330 --> 00:19:20.340 align:start position:0% would be very terrible for the user 00:19:20.340 --> 00:19:22.010 align:start position:0% would be very terrible for the user maybe<00:19:20.700> in<00:19:21.000> a<00:19:21.120> slightly<00:19:21.299> better<00:19:21.419> world<00:19:21.720> the 00:19:22.010 --> 00:19:22.020 align:start position:0% maybe in a slightly better world the 00:19:22.020 --> 00:19:24.710 align:start position:0% maybe in a slightly better world the wallets<00:19:22.440> will<00:19:22.620> pay<00:19:22.799> some<00:19:23.340> of<00:19:23.460> that<00:19:23.820> uh<00:19:24.299> returns 00:19:24.710 --> 00:19:24.720 align:start position:0% wallets will pay some of that uh returns 00:19:24.720 --> 00:19:26.270 align:start position:0% wallets will pay some of that uh returns to<00:19:24.960> the<00:19:25.080> user<00:19:25.320> and<00:19:25.440> maybe<00:19:25.620> give<00:19:25.799> the<00:19:25.980> user 00:19:26.270 --> 00:19:26.280 align:start position:0% to the user and maybe give the user 00:19:26.280 --> 00:19:28.310 align:start position:0% to the user and maybe give the user something<00:19:26.700> like<00:19:27.000> free<00:19:27.360> transactions<00:19:28.020> or 00:19:28.310 --> 00:19:28.320 align:start position:0% something like free transactions or 00:19:28.320 --> 00:19:30.529 align:start position:0% something like free transactions or commission<00:19:28.799> free<00:19:28.980> trading<00:19:29.400> at<00:19:29.580> least 00:19:30.529 --> 00:19:30.539 align:start position:0% commission free trading at least 00:19:30.539 --> 00:19:32.090 align:start position:0% commission free trading at least but<00:19:30.900> if<00:19:31.020> we're<00:19:31.140> in<00:19:31.260> this<00:19:31.440> world<00:19:31.620> then<00:19:31.799> we've 00:19:32.090 --> 00:19:32.100 align:start position:0% but if we're in this world then we've 00:19:32.100 --> 00:19:33.470 align:start position:0% but if we're in this world then we've literally<00:19:32.400> just<00:19:32.580> reinvented<00:19:33.120> traditional 00:19:33.470 --> 00:19:33.480 align:start position:0% literally just reinvented traditional 00:19:33.480 --> 00:19:35.810 align:start position:0% literally just reinvented traditional Finance<00:19:33.900> because<00:19:34.500> the<00:19:34.799> Brokers<00:19:35.160> Brokers<00:19:35.640> such 00:19:35.810 --> 00:19:35.820 align:start position:0% Finance because the Brokers Brokers such 00:19:35.820 --> 00:19:38.029 align:start position:0% Finance because the Brokers Brokers such as<00:19:35.940> Robin<00:19:36.120> Hood<00:19:36.500> received<00:19:37.500> payment<00:19:37.620> from<00:19:37.860> for 00:19:38.029 --> 00:19:38.039 align:start position:0% as Robin Hood received payment from for 00:19:38.039 --> 00:19:39.590 align:start position:0% as Robin Hood received payment from for order<00:19:38.220> flow<00:19:38.580> from<00:19:38.820> market<00:19:39.000> makers<00:19:39.480> or 00:19:39.590 --> 00:19:39.600 align:start position:0% order flow from market makers or 00:19:39.600 --> 00:19:41.990 align:start position:0% order flow from market makers or wholesalers<00:19:40.140> just<00:19:40.380> as<00:19:40.679> such<00:19:41.280> as<00:19:41.460> Citadel 00:19:41.990 --> 00:19:42.000 align:start position:0% wholesalers just as such as Citadel 00:19:42.000 --> 00:19:44.210 align:start position:0% wholesalers just as such as Citadel Securities<00:19:42.419> jump<00:19:42.660> Jane<00:19:43.140> Street<00:19:43.380> but<00:19:44.039> it's 00:19:44.210 --> 00:19:44.220 align:start position:0% Securities jump Jane Street but it's 00:19:44.220 --> 00:19:46.250 align:start position:0% Securities jump Jane Street but it's just<00:19:44.400> really<00:19:44.520> a<00:19:44.760> handful<00:19:45.000> and<00:19:45.660> then<00:19:45.840> offer 00:19:46.250 --> 00:19:46.260 align:start position:0% just really a handful and then offer 00:19:46.260 --> 00:19:49.130 align:start position:0% just really a handful and then offer commission<00:19:46.679> free<00:19:46.919> trading<00:19:47.480> to<00:19:48.480> their<00:19:48.960> end 00:19:49.130 --> 00:19:49.140 align:start position:0% commission free trading to their end 00:19:49.140 --> 00:19:51.950 align:start position:0% commission free trading to their end users<00:19:49.559> and<00:19:50.340> I'm<00:19:50.460> not<00:19:50.640> saying<00:19:50.940> that<00:19:51.120> pfof<00:19:51.660> is 00:19:51.950 --> 00:19:51.960 align:start position:0% users and I'm not saying that pfof is 00:19:51.960 --> 00:19:54.110 align:start position:0% users and I'm not saying that pfof is bad<00:19:52.260> actually<00:19:53.100> in<00:19:53.280> traditional<00:19:53.640> Finance<00:19:53.940> you 00:19:54.110 --> 00:19:54.120 align:start position:0% bad actually in traditional Finance you 00:19:54.120 --> 00:19:55.130 align:start position:0% bad actually in traditional Finance you know<00:19:54.179> there<00:19:54.360> there<00:19:54.539> could<00:19:54.720> be<00:19:54.780> there's 00:19:55.130 --> 00:19:55.140 align:start position:0% know there there could be there's 00:19:55.140 --> 00:19:57.409 align:start position:0% know there there could be there's arguments<00:19:55.679> on<00:19:55.919> on<00:19:56.039> each<00:19:56.340> side<00:19:56.460> but<00:19:56.940> what<00:19:57.120> I<00:19:57.299> try 00:19:57.409 --> 00:19:57.419 align:start position:0% arguments on on each side but what I try 00:19:57.419 --> 00:19:58.909 align:start position:0% arguments on on each side but what I try to<00:19:57.539> stress<00:19:58.020> here<00:19:58.140> is<00:19:58.320> that<00:19:58.440> we've<00:19:58.679> learned 00:19:58.909 --> 00:19:58.919 align:start position:0% to stress here is that we've learned 00:19:58.919 --> 00:20:00.289 align:start position:0% to stress here is that we've learned from<00:19:59.100> traditional<00:19:59.460> finance<00:19:59.820> that<00:20:00.059> this 00:20:00.289 --> 00:20:00.299 align:start position:0% from traditional finance that this 00:20:00.299 --> 00:20:02.210 align:start position:0% from traditional finance that this mechanism<00:20:00.780> doesn't<00:20:01.080> work<00:20:01.440> in<00:20:02.100> a 00:20:02.210 --> 00:20:02.220 align:start position:0% mechanism doesn't work in a 00:20:02.220 --> 00:20:04.250 align:start position:0% mechanism doesn't work in a decentralized<00:20:02.640> Fashions<00:20:03.120> Market<00:20:03.720> maker 00:20:04.250 --> 00:20:04.260 align:start position:0% decentralized Fashions Market maker 00:20:04.260 --> 00:20:05.630 align:start position:0% decentralized Fashions Market maker there's<00:20:04.500> just<00:20:04.679> a<00:20:04.799> handful<00:20:05.039> of<00:20:05.220> them<00:20:05.340> they're 00:20:05.630 --> 00:20:05.640 align:start position:0% there's just a handful of them they're 00:20:05.640 --> 00:20:08.330 align:start position:0% there's just a handful of them they're highly<00:20:06.000> regulated<00:20:06.419> without<00:20:07.140> the<00:20:07.440> SEC<00:20:07.559> users 00:20:08.330 --> 00:20:08.340 align:start position:0% highly regulated without the SEC users 00:20:08.340 --> 00:20:09.890 align:start position:0% highly regulated without the SEC users would<00:20:08.520> be<00:20:08.640> run<00:20:08.760> over<00:20:08.940> there's<00:20:09.299> basically<00:20:09.660> this 00:20:09.890 --> 00:20:09.900 align:start position:0% would be run over there's basically this 00:20:09.900 --> 00:20:11.810 align:start position:0% would be run over there's basically this law<00:20:10.080> that<00:20:10.380> requires<00:20:10.740> a<00:20:10.860> market<00:20:11.039> maker<00:20:11.460> to<00:20:11.640> give 00:20:11.810 --> 00:20:11.820 align:start position:0% law that requires a market maker to give 00:20:11.820 --> 00:20:14.090 align:start position:0% law that requires a market maker to give people<00:20:12.179> a<00:20:12.480> price<00:20:12.600> Improvement<00:20:13.080> on<00:20:13.440> top<00:20:13.559> of<00:20:13.799> the 00:20:14.090 --> 00:20:14.100 align:start position:0% people a price Improvement on top of the 00:20:14.100 --> 00:20:15.950 align:start position:0% people a price Improvement on top of the official<00:20:14.700> bid<00:20:14.940> and<00:20:15.059> ads<00:20:15.360> that<00:20:15.480> they<00:20:15.600> see<00:20:15.720> on 00:20:15.950 --> 00:20:15.960 align:start position:0% official bid and ads that they see on 00:20:15.960 --> 00:20:18.110 align:start position:0% official bid and ads that they see on NASDAQ<00:20:16.380> and<00:20:16.500> New<00:20:16.679> York<00:20:16.799> Stock<00:20:16.980> Exchange<00:20:17.400> so 00:20:18.110 --> 00:20:18.120 align:start position:0% NASDAQ and New York Stock Exchange so 00:20:18.120 --> 00:20:19.789 align:start position:0% NASDAQ and New York Stock Exchange so you<00:20:18.299> require<00:20:18.480> regulation<00:20:19.140> in<00:20:19.320> order<00:20:19.500> to<00:20:19.620> make 00:20:19.789 --> 00:20:19.799 align:start position:0% you require regulation in order to make 00:20:19.799 --> 00:20:22.070 align:start position:0% you require regulation in order to make this<00:20:19.980> Market<00:20:20.160> safe<00:20:20.460> for<00:20:20.640> the<00:20:20.760> user<00:20:21.059> and<00:20:21.720> it<00:20:21.960> is 00:20:22.070 --> 00:20:22.080 align:start position:0% this Market safe for the user and it is 00:20:22.080 --> 00:20:24.049 align:start position:0% this Market safe for the user and it is just<00:20:22.200> a<00:20:22.320> centralized<00:20:22.799> system<00:20:23.039> so<00:20:23.760> if<00:20:23.880> we 00:20:24.049 --> 00:20:24.059 align:start position:0% just a centralized system so if we 00:20:24.059 --> 00:20:25.549 align:start position:0% just a centralized system so if we really<00:20:24.179> want<00:20:24.419> to<00:20:24.480> get<00:20:24.600> ethereum<00:20:25.020> to<00:20:25.200> be<00:20:25.320> this 00:20:25.549 --> 00:20:25.559 align:start position:0% really want to get ethereum to be this 00:20:25.559 --> 00:20:27.169 align:start position:0% really want to get ethereum to be this neutral<00:20:25.919> credible<00:20:26.520> neutral<00:20:26.880> settlement 00:20:27.169 --> 00:20:27.179 align:start position:0% neutral credible neutral settlement 00:20:27.179 --> 00:20:29.570 align:start position:0% neutral credible neutral settlement layer<00:20:27.539> we<00:20:27.960> cannot<00:20:28.200> reinvent<00:20:28.740> the<00:20:29.100> system<00:20:29.280> and 00:20:29.570 --> 00:20:29.580 align:start position:0% layer we cannot reinvent the system and 00:20:29.580 --> 00:20:31.070 align:start position:0% layer we cannot reinvent the system and and<00:20:29.760> work<00:20:29.880> with<00:20:30.059> traditional<00:20:30.299> Finance 00:20:31.070 --> 00:20:31.080 align:start position:0% and work with traditional Finance 00:20:31.080 --> 00:20:33.650 align:start position:0% and work with traditional Finance the<00:20:31.620> other<00:20:31.679> thing<00:20:31.860> that<00:20:32.039> I<00:20:32.160> hear<00:20:32.280> a<00:20:32.460> lot<00:20:32.520> is<00:20:32.940> you 00:20:33.650 --> 00:20:33.660 align:start position:0% the other thing that I hear a lot is you 00:20:33.660 --> 00:20:35.450 align:start position:0% the other thing that I hear a lot is you know<00:20:33.780> this<00:20:34.140> narrative<00:20:34.440> around<00:20:34.740> Mev 00:20:35.450 --> 00:20:35.460 align:start position:0% know this narrative around Mev 00:20:35.460 --> 00:20:36.950 align:start position:0% know this narrative around Mev maximization<00:20:36.000> is<00:20:36.240> great<00:20:36.419> we<00:20:36.600> all<00:20:36.720> have<00:20:36.840> to 00:20:36.950 --> 00:20:36.960 align:start position:0% maximization is great we all have to 00:20:36.960 --> 00:20:39.409 align:start position:0% maximization is great we all have to focus<00:20:37.140> on<00:20:37.320> Mev<00:20:37.980> maximization<00:20:38.580> sure<00:20:39.059> we<00:20:39.299> should 00:20:39.409 --> 00:20:39.419 align:start position:0% focus on Mev maximization sure we should 00:20:39.419 --> 00:20:41.570 align:start position:0% focus on Mev maximization sure we should minimize<00:20:39.900> but<00:20:40.260> we<00:20:40.559> need<00:20:40.679> to<00:20:40.740> maximize<00:20:41.220> the<00:20:41.460> the 00:20:41.570 --> 00:20:41.580 align:start position:0% minimize but we need to maximize the the 00:20:41.580 --> 00:20:43.430 align:start position:0% minimize but we need to maximize the the of<00:20:42.000> what's<00:20:42.059> out<00:20:42.299> there<00:20:42.480> and<00:20:43.080> I<00:20:43.200> just<00:20:43.320> want 00:20:43.430 --> 00:20:43.440 align:start position:0% of what's out there and I just want 00:20:43.440 --> 00:20:45.010 align:start position:0% of what's out there and I just want to<00:20:43.559> pose<00:20:43.679> the<00:20:43.860> question<00:20:44.039> of<00:20:44.280> these<00:20:44.520> two 00:20:45.010 --> 00:20:45.020 align:start position:0% to pose the question of these two 00:20:45.020 --> 00:20:47.570 align:start position:0% to pose the question of these two philosophies<00:20:46.020> Mev<00:20:46.799> maximization<00:20:47.400> and 00:20:47.570 --> 00:20:47.580 align:start position:0% philosophies Mev maximization and 00:20:47.580 --> 00:20:49.730 align:start position:0% philosophies Mev maximization and minimization<00:20:48.120> can<00:20:48.780> coexist<00:20:49.260> at<00:20:49.440> the<00:20:49.559> same 00:20:49.730 --> 00:20:49.740 align:start position:0% minimization can coexist at the same 00:20:49.740 --> 00:20:50.630 align:start position:0% minimization can coexist at the same time 00:20:50.630 --> 00:20:50.640 align:start position:0% time 00:20:50.640 --> 00:20:53.090 align:start position:0% time because<00:20:51.240> at<00:20:51.960> least<00:20:52.080> in<00:20:52.260> my<00:20:52.380> mind<00:20:52.559> Mev 00:20:53.090 --> 00:20:53.100 align:start position:0% because at least in my mind Mev 00:20:53.100 --> 00:20:55.310 align:start position:0% because at least in my mind Mev maximization<00:20:53.820> leads<00:20:54.600> to<00:20:54.660> very<00:20:54.900> dangerous 00:20:55.310 --> 00:20:55.320 align:start position:0% maximization leads to very dangerous 00:20:55.320 --> 00:20:57.409 align:start position:0% maximization leads to very dangerous incentives<00:20:55.860> for<00:20:56.220> the<00:20:56.340> participants<00:20:56.940> and 00:20:57.409 --> 00:20:57.419 align:start position:0% incentives for the participants and 00:20:57.419 --> 00:20:59.090 align:start position:0% incentives for the participants and creates<00:20:57.780> an<00:20:58.140> extremely<00:20:58.440> hard<00:20:58.620> coordination 00:20:59.090 --> 00:20:59.100 align:start position:0% creates an extremely hard coordination 00:20:59.100 --> 00:21:01.430 align:start position:0% creates an extremely hard coordination problem<00:20:59.460> that<00:21:00.120> Mev<00:21:00.539> minimizing<00:21:01.020> protocols 00:21:01.430 --> 00:21:01.440 align:start position:0% problem that Mev minimizing protocols 00:21:01.440 --> 00:21:03.529 align:start position:0% problem that Mev minimizing protocols such<00:21:01.620> as<00:21:01.740> cow<00:21:01.860> swap<00:21:02.220> need<00:21:02.400> to<00:21:02.520> overcome 00:21:03.529 --> 00:21:03.539 align:start position:0% such as cow swap need to overcome 00:21:03.539 --> 00:21:07.130 align:start position:0% such as cow swap need to overcome right<00:21:04.260> now<00:21:04.500> we<00:21:05.160> are<00:21:05.400> in<00:21:05.640> a<00:21:05.940> uh<00:21:06.720> you<00:21:06.900> know<00:21:06.960> you 00:21:07.130 --> 00:21:07.140 align:start position:0% right now we are in a uh you know you 00:21:07.140 --> 00:21:09.110 align:start position:0% right now we are in a uh you know you could<00:21:07.260> you<00:21:07.380> could<00:21:07.559> think<00:21:07.679> of<00:21:07.860> a<00:21:08.160> Mev<00:21:08.640> reducing 00:21:09.110 --> 00:21:09.120 align:start position:0% could you could think of a Mev reducing 00:21:09.120 --> 00:21:11.510 align:start position:0% could you could think of a Mev reducing protocol<00:21:09.419> or<00:21:09.720> an<00:21:09.840> Mev<00:21:10.200> reducing<00:21:10.620> Builder<00:21:10.980> to 00:21:11.510 --> 00:21:11.520 align:start position:0% protocol or an Mev reducing Builder to 00:21:11.520 --> 00:21:13.610 align:start position:0% protocol or an Mev reducing Builder to having<00:21:11.700> to<00:21:12.000> play<00:21:12.179> a<00:21:12.480> repetitive<00:21:12.900> prisoner's 00:21:13.610 --> 00:21:13.620 align:start position:0% having to play a repetitive prisoner's 00:21:13.620 --> 00:21:15.529 align:start position:0% having to play a repetitive prisoner's dilemma<00:21:14.039> where<00:21:14.520> in<00:21:14.700> the<00:21:14.880> current<00:21:14.940> status<00:21:15.120> quo 00:21:15.529 --> 00:21:15.539 align:start position:0% dilemma where in the current status quo 00:21:15.539 --> 00:21:17.210 align:start position:0% dilemma where in the current status quo everyone<00:21:15.840> is<00:21:16.140> extracting<00:21:16.500> Mev<00:21:16.919> so<00:21:17.100> everyone 00:21:17.210 --> 00:21:17.220 align:start position:0% everyone is extracting Mev so everyone 00:21:17.220 --> 00:21:19.430 align:start position:0% everyone is extracting Mev so everyone is<00:21:17.520> making<00:21:17.700> a<00:21:17.940> little<00:21:18.000> profit<00:21:18.419> if<00:21:19.140> you<00:21:19.260> now 00:21:19.430 --> 00:21:19.440 align:start position:0% is making a little profit if you now 00:21:19.440 --> 00:21:20.750 align:start position:0% is making a little profit if you now wear<00:21:19.620> a<00:21:19.740> block<00:21:19.860> Builder<00:21:20.280> that<00:21:20.400> wanted<00:21:20.580> to 00:21:20.750 --> 00:21:20.760 align:start position:0% wear a block Builder that wanted to 00:21:20.760 --> 00:21:23.029 align:start position:0% wear a block Builder that wanted to operate<00:21:21.179> without<00:21:21.419> the<00:21:21.660> rent<00:21:21.780> from<00:21:22.080> Mev 00:21:23.029 --> 00:21:23.039 align:start position:0% operate without the rent from Mev 00:21:23.039 --> 00:21:24.770 align:start position:0% operate without the rent from Mev you<00:21:23.460> would<00:21:23.580> deflect<00:21:23.940> from<00:21:24.240> the<00:21:24.360> extraction 00:21:24.770 --> 00:21:24.780 align:start position:0% you would deflect from the extraction 00:21:24.780 --> 00:21:26.390 align:start position:0% you would deflect from the extraction but<00:21:25.320> you<00:21:25.440> would<00:21:25.559> basically<00:21:25.860> not<00:21:26.100> get<00:21:26.280> any 00:21:26.390 --> 00:21:26.400 align:start position:0% but you would basically not get any 00:21:26.400 --> 00:21:28.130 align:start position:0% but you would basically not get any rewards<00:21:26.820> from<00:21:26.940> Mev<00:21:27.299> and<00:21:27.480> everyone<00:21:27.660> else<00:21:27.840> would 00:21:28.130 --> 00:21:28.140 align:start position:0% rewards from Mev and everyone else would 00:21:28.140 --> 00:21:30.830 align:start position:0% rewards from Mev and everyone else would get<00:21:28.320> slightly<00:21:28.919> more<00:21:29.580> and<00:21:30.059> it<00:21:30.240> would<00:21:30.419> require 00:21:30.830 --> 00:21:30.840 align:start position:0% get slightly more and it would require 00:21:30.840 --> 00:21:32.870 align:start position:0% get slightly more and it would require the<00:21:31.320> entire<00:21:31.559> space<00:21:31.860> all<00:21:32.280> Builders<00:21:32.700> to 00:21:32.870 --> 00:21:32.880 align:start position:0% the entire space all Builders to 00:21:32.880 --> 00:21:34.789 align:start position:0% the entire space all Builders to cooperate<00:21:33.360> in<00:21:33.900> order<00:21:34.020> to<00:21:34.200> achieve<00:21:34.559> a<00:21:34.679> new 00:21:34.789 --> 00:21:34.799 align:start position:0% cooperate in order to achieve a new 00:21:34.799 --> 00:21:36.890 align:start position:0% cooperate in order to achieve a new equilibrium<00:21:35.340> in<00:21:36.179> which<00:21:36.360> we'll<00:21:36.539> actually 00:21:36.890 --> 00:21:36.900 align:start position:0% equilibrium in which we'll actually 00:21:36.900 --> 00:21:39.830 align:start position:0% equilibrium in which we'll actually hopefully<00:21:37.820> are<00:21:38.820> all<00:21:39.000> socially<00:21:39.419> better<00:21:39.659> off 00:21:39.830 --> 00:21:39.840 align:start position:0% hopefully are all socially better off 00:21:39.840 --> 00:21:41.930 align:start position:0% hopefully are all socially better off definitely<00:21:40.679> the<00:21:40.919> the<00:21:41.100> people<00:21:41.580> that<00:21:41.820> are 00:21:41.930 --> 00:21:41.940 align:start position:0% definitely the the people that are 00:21:41.940 --> 00:21:42.950 align:start position:0% definitely the the people that are trading<00:21:42.240> because<00:21:42.360> they're<00:21:42.600> not<00:21:42.840> getting 00:21:42.950 --> 00:21:42.960 align:start position:0% trading because they're not getting 00:21:42.960 --> 00:21:44.570 align:start position:0% trading because they're not getting wrecked<00:21:43.320> but<00:21:43.679> even<00:21:43.799> the<00:21:44.039> people<00:21:44.159> that<00:21:44.400> are 00:21:44.570 --> 00:21:44.580 align:start position:0% wrecked but even the people that are 00:21:44.580 --> 00:21:46.549 align:start position:0% wrecked but even the people that are that<00:21:44.940> are<00:21:45.120> validating<00:21:45.600> I'd<00:21:45.900> argue<00:21:46.260> that<00:21:46.380> in 00:21:46.549 --> 00:21:46.559 align:start position:0% that are validating I'd argue that in 00:21:46.559 --> 00:21:48.169 align:start position:0% that are validating I'd argue that in this<00:21:46.740> system<00:21:46.919> can<00:21:47.400> make<00:21:47.580> much<00:21:47.760> more<00:21:47.940> money 00:21:48.169 --> 00:21:48.179 align:start position:0% this system can make much more money 00:21:48.179 --> 00:21:50.810 align:start position:0% this system can make much more money from<00:21:48.539> transaction<00:21:49.140> fees<00:21:49.559> and<00:21:49.740> just<00:21:49.860> adoption 00:21:50.810 --> 00:21:50.820 align:start position:0% from transaction fees and just adoption 00:21:50.820 --> 00:21:52.730 align:start position:0% from transaction fees and just adoption but<00:21:51.299> really<00:21:51.480> this<00:21:51.659> requires<00:21:52.080> all<00:21:52.260> Builders<00:21:52.620> to 00:21:52.730 --> 00:21:52.740 align:start position:0% but really this requires all Builders to 00:21:52.740 --> 00:21:54.409 align:start position:0% but really this requires all Builders to cooperate<00:21:53.159> otherwise<00:21:53.700> we'll<00:21:54.000> not<00:21:54.179> get<00:21:54.299> into 00:21:54.409 --> 00:21:54.419 align:start position:0% cooperate otherwise we'll not get into 00:21:54.419 --> 00:21:56.390 align:start position:0% cooperate otherwise we'll not get into this<00:21:54.720> new<00:21:54.900> equilibrium<00:21:55.620> and<00:21:55.980> what<00:21:56.159> we<00:21:56.280> see 00:21:56.390 --> 00:21:56.400 align:start position:0% this new equilibrium and what we see 00:21:56.400 --> 00:21:58.669 align:start position:0% this new equilibrium and what we see today<00:21:56.640> is<00:21:56.940> that<00:21:57.299> basically<00:21:58.020> everyone<00:21:58.380> is 00:21:58.669 --> 00:21:58.679 align:start position:0% today is that basically everyone is 00:21:58.679 --> 00:22:00.830 align:start position:0% today is that basically everyone is focusing<00:21:59.039> on<00:21:59.220> the<00:21:59.340> top<00:21:59.520> left<00:21:59.700> corner<00:22:00.120> and<00:22:00.659> the 00:22:00.830 --> 00:22:00.840 align:start position:0% focusing on the top left corner and the 00:22:00.840 --> 00:22:02.810 align:start position:0% focusing on the top left corner and the status<00:22:00.960> quo<00:22:01.380> is<00:22:01.620> to<00:22:01.919> fight<00:22:02.100> over<00:22:02.340> the<00:22:02.520> existing 00:22:02.810 --> 00:22:02.820 align:start position:0% status quo is to fight over the existing 00:22:02.820 --> 00:22:05.930 align:start position:0% status quo is to fight over the existing Meb<00:22:03.240> that's<00:22:03.419> in<00:22:03.600> there<00:22:03.720> and<00:22:04.320> potentially<00:22:04.740> even 00:22:05.930 --> 00:22:05.940 align:start position:0% Meb that's in there and potentially even 00:22:05.940 --> 00:22:07.430 align:start position:0% Meb that's in there and potentially even um fight<00:22:06.179> against<00:22:06.419> new<00:22:06.659> entrants<00:22:07.080> that<00:22:07.260> are 00:22:07.430 --> 00:22:07.440 align:start position:0% um fight against new entrants that are 00:22:07.440 --> 00:22:11.330 align:start position:0% um fight against new entrants that are trying<00:22:07.679> to<00:22:08.640> propose<00:22:09.059> Mev<00:22:09.659> reducing<00:22:10.620> protocols 00:22:11.330 --> 00:22:11.340 align:start position:0% trying to propose Mev reducing protocols 00:22:11.340 --> 00:22:13.250 align:start position:0% trying to propose Mev reducing protocols because<00:22:11.580> basically<00:22:12.240> that's<00:22:12.840> eating<00:22:13.200> the 00:22:13.250 --> 00:22:13.260 align:start position:0% because basically that's eating the 00:22:13.260 --> 00:22:14.810 align:start position:0% because basically that's eating the searcher's<00:22:13.679> lunch 00:22:14.810 --> 00:22:14.820 align:start position:0% searcher's lunch 00:22:14.820 --> 00:22:17.210 align:start position:0% searcher's lunch and<00:22:15.360> so<00:22:15.480> my<00:22:16.140> call<00:22:16.260> to<00:22:16.440> action<00:22:16.620> here<00:22:16.799> at<00:22:16.980> the<00:22:17.100> end 00:22:17.210 --> 00:22:17.220 align:start position:0% and so my call to action here at the end 00:22:17.220 --> 00:22:20.450 align:start position:0% and so my call to action here at the end is<00:22:17.400> let's<00:22:18.000> not<00:22:18.240> focus<00:22:18.659> on<00:22:19.080> Mev<00:22:19.799> maximization 00:22:20.450 --> 00:22:20.460 align:start position:0% is let's not focus on Mev maximization 00:22:20.460 --> 00:22:22.070 align:start position:0% is let's not focus on Mev maximization and<00:22:20.880> split<00:22:21.179> the<00:22:21.299> pie<00:22:21.480> that's<00:22:21.720> out<00:22:21.960> there 00:22:22.070 --> 00:22:22.080 align:start position:0% and split the pie that's out there 00:22:22.080 --> 00:22:23.810 align:start position:0% and split the pie that's out there because<00:22:22.260> it's<00:22:22.679> tiny<00:22:23.039> compared<00:22:23.400> to<00:22:23.460> what<00:22:23.640> we 00:22:23.810 --> 00:22:23.820 align:start position:0% because it's tiny compared to what we 00:22:23.820 --> 00:22:25.850 align:start position:0% because it's tiny compared to what we want<00:22:23.880> to<00:22:24.000> unlock<00:22:24.120> let's<00:22:24.960> work<00:22:25.200> together<00:22:25.440> and 00:22:25.850 --> 00:22:25.860 align:start position:0% want to unlock let's work together and 00:22:25.860 --> 00:22:28.610 align:start position:0% want to unlock let's work together and grow<00:22:26.039> the<00:22:26.220> pie<00:22:26.460> and<00:22:27.000> try<00:22:27.179> to<00:22:27.419> get<00:22:27.539> ethereum<00:22:28.140> to 00:22:28.610 --> 00:22:28.620 align:start position:0% grow the pie and try to get ethereum to 00:22:28.620 --> 00:22:30.230 align:start position:0% grow the pie and try to get ethereum to the<00:22:28.740> next<00:22:28.860> order<00:22:29.039> of<00:22:29.280> magnitude<00:22:29.700> of<00:22:29.820> adoption 00:22:30.230 --> 00:22:30.240 align:start position:0% the next order of magnitude of adoption 00:22:30.240 --> 00:22:33.830 align:start position:0% the next order of magnitude of adoption and<00:22:30.900> with<00:22:31.080> that<00:22:31.260> thank<00:22:31.860> you<00:22:32.039> very<00:22:32.159> much 00:22:33.830 --> 00:22:33.840 align:start position:0% and with that thank you very much 00:22:33.840 --> 00:22:35.870 align:start position:0% and with that thank you very much there<00:22:34.320> we<00:22:34.500> go<00:22:34.559> all<00:22:34.860> right<00:22:34.980> hey<00:22:35.220> great<00:22:35.460> talk<00:22:35.700> by 00:22:35.870 --> 00:22:35.880 align:start position:0% there we go all right hey great talk by 00:22:35.880 --> 00:22:36.590 align:start position:0% there we go all right hey great talk by the<00:22:36.000> way 00:22:36.590 --> 00:22:36.600 align:start position:0% the way 00:22:36.600 --> 00:22:38.930 align:start position:0% the way um<00:22:36.720> so<00:22:37.080> I<00:22:37.200> have<00:22:37.620> a<00:22:37.919> kind<00:22:38.400> of<00:22:38.520> a<00:22:38.580> quick<00:22:38.760> question 00:22:38.930 --> 00:22:38.940 align:start position:0% um so I have a kind of a quick question 00:22:38.940 --> 00:22:41.450 align:start position:0% um so I have a kind of a quick question right<00:22:39.240> like<00:22:39.539> what<00:22:40.260> you've<00:22:40.500> done<00:22:40.679> is<00:22:41.100> you've 00:22:41.450 --> 00:22:41.460 align:start position:0% right like what you've done is you've 00:22:41.460 --> 00:22:43.610 align:start position:0% right like what you've done is you've taken<00:22:41.700> a<00:22:41.820> heart<00:22:41.940> problem<00:22:42.240> you<00:22:43.200> have<00:22:43.320> made<00:22:43.500> it 00:22:43.610 --> 00:22:43.620 align:start position:0% taken a heart problem you have made it 00:22:43.620 --> 00:22:45.049 align:start position:0% taken a heart problem you have made it an<00:22:43.740> NP<00:22:43.980> hard<00:22:44.159> problem<00:22:44.340> you<00:22:44.580> still<00:22:44.760> you<00:22:44.940> have<00:22:45.000> an 00:22:45.049 --> 00:22:45.059 align:start position:0% an NP hard problem you still you have an 00:22:45.059 --> 00:22:46.730 align:start position:0% an NP hard problem you still you have an NP<00:22:45.299> hard<00:22:45.419> problem<00:22:45.659> which<00:22:45.900> is<00:22:46.020> like<00:22:46.320> this<00:22:46.559> very 00:22:46.730 --> 00:22:46.740 align:start position:0% NP hard problem which is like this very 00:22:46.740 --> 00:22:48.770 align:start position:0% NP hard problem which is like this very complicated<00:22:47.280> auction 00:22:48.770 --> 00:22:48.780 align:start position:0% complicated auction 00:22:48.780 --> 00:22:51.049 align:start position:0% complicated auction um<00:22:48.840> which<00:22:49.440> brings<00:22:49.980> a<00:22:50.159> bit<00:22:50.280> of<00:22:50.400> a<00:22:50.580> you<00:22:51.000> know 00:22:51.049 --> 00:22:51.059 align:start position:0% um which brings a bit of a you know 00:22:51.059 --> 00:22:52.789 align:start position:0% um which brings a bit of a you know difficult<00:22:51.419> situation<00:22:51.840> because<00:22:52.080> NP<00:22:52.620> hard 00:22:52.789 --> 00:22:52.799 align:start position:0% difficult situation because NP hard 00:22:52.799 --> 00:22:54.529 align:start position:0% difficult situation because NP hard problems<00:22:53.220> kind<00:22:53.520> of<00:22:53.580> by<00:22:53.760> definition<00:22:53.940> are<00:22:54.360> very 00:22:54.529 --> 00:22:54.539 align:start position:0% problems kind of by definition are very 00:22:54.539 --> 00:22:56.810 align:start position:0% problems kind of by definition are very sensitive<00:22:55.020> to<00:22:55.380> like<00:22:55.620> people<00:22:56.220> kind<00:22:56.760> of 00:22:56.810 --> 00:22:56.820 align:start position:0% sensitive to like people kind of 00:22:56.820 --> 00:22:58.610 align:start position:0% sensitive to like people kind of manipulating<00:22:57.419> things<00:22:57.720> and<00:22:57.960> adding<00:22:58.260> Solutions 00:22:58.610 --> 00:22:58.620 align:start position:0% manipulating things and adding Solutions 00:22:58.620 --> 00:23:00.950 align:start position:0% manipulating things and adding Solutions and<00:22:58.860> I<00:22:58.980> think<00:22:59.100> by<00:22:59.640> our<00:22:59.820> call<00:22:59.940> correctly<00:23:00.299> bancor 00:23:00.950 --> 00:23:00.960 align:start position:0% and I think by our call correctly bancor 00:23:00.960 --> 00:23:03.770 align:start position:0% and I think by our call correctly bancor had<00:23:01.380> some<00:23:01.679> interesting<00:23:02.100> issues<00:23:02.460> with<00:23:02.580> this 00:23:03.770 --> 00:23:03.780 align:start position:0% had some interesting issues with this 00:23:03.780 --> 00:23:06.230 align:start position:0% had some interesting issues with this um so<00:23:04.140> why<00:23:04.380> not<00:23:04.620> for<00:23:04.919> example<00:23:05.159> you<00:23:05.700> know<00:23:05.760> one 00:23:06.230 --> 00:23:06.240 align:start position:0% um so why not for example you know one 00:23:06.240 --> 00:23:08.510 align:start position:0% um so why not for example you know one simple<00:23:06.419> condition<00:23:06.720> to<00:23:07.140> have<00:23:07.380> one<00:23:08.039> price<00:23:08.280> for 00:23:08.510 --> 00:23:08.520 align:start position:0% simple condition to have one price for 00:23:08.520 --> 00:23:11.090 align:start position:0% simple condition to have one price for many<00:23:08.760> assets<00:23:09.179> or<00:23:09.659> sorry<00:23:09.900> one<00:23:10.380> price<00:23:10.559> for<00:23:10.860> many 00:23:11.090 --> 00:23:11.100 align:start position:0% many assets or sorry one price for many 00:23:11.100 --> 00:23:14.210 align:start position:0% many assets or sorry one price for many dexes<00:23:12.059> with<00:23:12.720> or<00:23:12.960> for<00:23:13.140> one<00:23:13.320> for<00:23:13.740> specific 00:23:14.210 --> 00:23:14.220 align:start position:0% dexes with or for one for specific 00:23:14.220 --> 00:23:16.850 align:start position:0% dexes with or for one for specific assets<00:23:14.640> is<00:23:14.880> just<00:23:15.059> to<00:23:15.179> do<00:23:15.299> optimal<00:23:15.720> routing<00:23:16.080> and 00:23:16.850 --> 00:23:16.860 align:start position:0% assets is just to do optimal routing and 00:23:16.860 --> 00:23:18.529 align:start position:0% assets is just to do optimal routing and optimal<00:23:17.280> routing<00:23:17.580> is<00:23:17.700> a<00:23:17.820> convex<00:23:18.120> problem<00:23:18.299> you 00:23:18.529 --> 00:23:18.539 align:start position:0% optimal routing is a convex problem you 00:23:18.539 --> 00:23:19.789 align:start position:0% optimal routing is a convex problem you can<00:23:18.600> do<00:23:18.720> it<00:23:18.840> efficiently<00:23:19.200> it's<00:23:19.380> very<00:23:19.620> simple 00:23:19.789 --> 00:23:19.799 align:start position:0% can do it efficiently it's very simple 00:23:19.799 --> 00:23:22.130 align:start position:0% can do it efficiently it's very simple to<00:23:20.039> solve<00:23:20.340> why<00:23:20.820> not<00:23:21.059> just<00:23:21.240> do<00:23:21.539> that<00:23:21.720> instead 00:23:22.130 --> 00:23:22.140 align:start position:0% to solve why not just do that instead 00:23:22.140 --> 00:23:25.310 align:start position:0% to solve why not just do that instead yeah<00:23:22.860> so<00:23:23.580> I<00:23:23.700> think<00:23:23.880> just<00:23:24.240> having<00:23:24.480> one<00:23:25.080> price 00:23:25.310 --> 00:23:25.320 align:start position:0% yeah so I think just having one price 00:23:25.320 --> 00:23:27.409 align:start position:0% yeah so I think just having one price per<00:23:25.620> token<00:23:26.039> pair<00:23:26.280> per<00:23:26.460> block<00:23:26.700> is<00:23:27.000> I<00:23:27.120> think<00:23:27.240> what 00:23:27.409 --> 00:23:27.419 align:start position:0% per token pair per block is I think what 00:23:27.419 --> 00:23:28.909 align:start position:0% per token pair per block is I think what you're<00:23:27.539> suggesting<00:23:27.960> that<00:23:28.440> you<00:23:28.679> know<00:23:28.740> would 00:23:28.909 --> 00:23:28.919 align:start position:0% you're suggesting that you know would 00:23:28.919 --> 00:23:30.289 align:start position:0% you're suggesting that you know would already<00:23:29.100> be<00:23:29.340> a<00:23:29.520> huge<00:23:29.700> Improvement<00:23:30.000> to<00:23:30.179> the 00:23:30.289 --> 00:23:30.299 align:start position:0% already be a huge Improvement to the 00:23:30.299 --> 00:23:32.289 align:start position:0% already be a huge Improvement to the status<00:23:30.419> quo<00:23:30.840> and<00:23:30.960> it<00:23:31.140> would<00:23:31.320> be<00:23:31.620> very 00:23:32.289 --> 00:23:32.299 align:start position:0% status quo and it would be very 00:23:32.299 --> 00:23:34.549 align:start position:0% status quo and it would be very computationally<00:23:33.299> feasible<00:23:33.780> to<00:23:34.140> solve<00:23:34.380> I 00:23:34.549 --> 00:23:34.559 align:start position:0% computationally feasible to solve I 00:23:34.559 --> 00:23:35.870 align:start position:0% computationally feasible to solve I totally<00:23:34.740> agree<00:23:34.919> with<00:23:35.039> that<00:23:35.159> I<00:23:35.580> think<00:23:35.700> the 00:23:35.870 --> 00:23:35.880 align:start position:0% totally agree with that I think the 00:23:35.880 --> 00:23:37.190 align:start position:0% totally agree with that I think the reason<00:23:36.000> why<00:23:36.299> we're<00:23:36.480> aiming<00:23:36.840> for<00:23:37.080> a 00:23:37.190 --> 00:23:37.200 align:start position:0% reason why we're aiming for a 00:23:37.200 --> 00:23:39.770 align:start position:0% reason why we're aiming for a multi-dimensional<00:23:37.799> batch<00:23:38.039> auctions<00:23:38.760> is<00:23:39.299> to 00:23:39.770 --> 00:23:39.780 align:start position:0% multi-dimensional batch auctions is to 00:23:39.780 --> 00:23:41.210 align:start position:0% multi-dimensional batch auctions is to make<00:23:39.900> the<00:23:40.020> life<00:23:40.140> of<00:23:40.320> our<00:23:40.440> solver<00:23:40.740> team<00:23:40.919> harder 00:23:41.210 --> 00:23:41.220 align:start position:0% make the life of our solver team harder 00:23:41.220 --> 00:23:43.669 align:start position:0% make the life of our solver team harder of<00:23:41.340> course<00:23:41.460> but<00:23:41.760> also<00:23:42.120> to<00:23:42.480> because<00:23:43.020> we<00:23:43.260> we<00:23:43.440> know 00:23:43.669 --> 00:23:43.679 align:start position:0% of course but also to because we we know 00:23:43.679 --> 00:23:45.649 align:start position:0% of course but also to because we we know that<00:23:43.860> or<00:23:44.100> we've<00:23:44.340> seen<00:23:44.580> that<00:23:44.820> the<00:23:45.120> token<00:23:45.480> space 00:23:45.649 --> 00:23:45.659 align:start position:0% that or we've seen that the token space 00:23:45.659 --> 00:23:48.049 align:start position:0% that or we've seen that the token space is<00:23:45.960> just<00:23:46.260> absolutely<00:23:47.220> fragmented<00:23:47.760> right 00:23:48.049 --> 00:23:48.059 align:start position:0% is just absolutely fragmented right 00:23:48.059 --> 00:23:50.210 align:start position:0% is just absolutely fragmented right there's<00:23:48.419> no<00:23:48.720> cost<00:23:48.900> for<00:23:49.260> somebody<00:23:49.380> to<00:23:49.860> launch<00:23:50.039> a 00:23:50.210 --> 00:23:50.220 align:start position:0% there's no cost for somebody to launch a 00:23:50.220 --> 00:23:51.950 align:start position:0% there's no cost for somebody to launch a token<00:23:50.520> and<00:23:50.700> so<00:23:50.820> even<00:23:51.000> if<00:23:51.179> we<00:23:51.299> just<00:23:51.419> look<00:23:51.600> at<00:23:51.780> US 00:23:51.950 --> 00:23:51.960 align:start position:0% token and so even if we just look at US 00:23:51.960 --> 00:23:54.230 align:start position:0% token and so even if we just look at US Dollars<00:23:52.440> there's<00:23:53.220> 10<00:23:53.580> or<00:23:53.760> 15<00:23:53.940> different 00:23:54.230 --> 00:23:54.240 align:start position:0% Dollars there's 10 or 15 different 00:23:54.240 --> 00:23:55.730 align:start position:0% Dollars there's 10 or 15 different stable<00:23:54.659> coins<00:23:54.960> that<00:23:55.140> are<00:23:55.260> all<00:23:55.380> trying<00:23:55.559> to 00:23:55.730 --> 00:23:55.740 align:start position:0% stable coins that are all trying to 00:23:55.740 --> 00:23:57.890 align:start position:0% stable coins that are all trying to resemble<00:23:56.100> the<00:23:56.220> US<00:23:56.340> dollar<00:23:56.580> and<00:23:57.299> so<00:23:57.419> sure<00:23:57.659> we 00:23:57.890 --> 00:23:57.900 align:start position:0% resemble the US dollar and so sure we 00:23:57.900 --> 00:24:00.110 align:start position:0% resemble the US dollar and so sure we might<00:23:58.020> have<00:23:58.200> then<00:23:58.380> one<00:23:58.620> token<00:23:59.039> per<00:23:59.220> one<00:23:59.940> price 00:24:00.110 --> 00:24:00.120 align:start position:0% might have then one token per one price 00:24:00.120 --> 00:24:03.289 align:start position:0% might have then one token per one price per<00:24:00.299> token<00:24:00.659> pair<00:24:00.900> on<00:24:01.260> USD<00:24:01.860> eth<00:24:02.280> and<00:24:02.580> Di<00:24:02.820> and 00:24:03.289 --> 00:24:03.299 align:start position:0% per token pair on USD eth and Di and 00:24:03.299 --> 00:24:05.210 align:start position:0% per token pair on USD eth and Di and LUSD<00:24:03.840> eat<00:24:03.960> but<00:24:04.440> we<00:24:04.559> would<00:24:04.679> still<00:24:04.799> have<00:24:04.980> this 00:24:05.210 --> 00:24:05.220 align:start position:0% LUSD eat but we would still have this 00:24:05.220 --> 00:24:07.130 align:start position:0% LUSD eat but we would still have this implicit<00:24:05.640> fragmentation<00:24:06.299> and<00:24:06.539> the<00:24:06.720> simplicit 00:24:07.130 --> 00:24:07.140 align:start position:0% implicit fragmentation and the simplicit 00:24:07.140 --> 00:24:08.870 align:start position:0% implicit fragmentation and the simplicit Arbitrage<00:24:07.620> and<00:24:08.100> so<00:24:08.220> we<00:24:08.340> think<00:24:08.520> the<00:24:08.760> most 00:24:08.870 --> 00:24:08.880 align:start position:0% Arbitrage and so we think the most 00:24:08.880 --> 00:24:10.370 align:start position:0% Arbitrage and so we think the most efficient<00:24:09.299> way<00:24:09.480> of<00:24:09.720> like<00:24:09.840> you<00:24:10.080> know<00:24:10.200> of 00:24:10.370 --> 00:24:10.380 align:start position:0% efficient way of like you know of 00:24:10.380 --> 00:24:12.830 align:start position:0% efficient way of like you know of arbitraging<00:24:11.039> the<00:24:11.220> if<00:24:11.520> usdc<00:24:12.120> to<00:24:12.299> die<00:24:12.480> is<00:24:12.659> one 00:24:12.830 --> 00:24:12.840 align:start position:0% arbitraging the if usdc to die is one 00:24:12.840 --> 00:24:16.310 align:start position:0% arbitraging the if usdc to die is one one<00:24:13.080> and<00:24:13.320> then<00:24:13.500> eth<00:24:13.980> die<00:24:14.220> is<00:24:14.580> 1300<00:24:15.299> and<00:24:15.659> ethucc 00:24:16.310 --> 00:24:16.320 align:start position:0% one and then eth die is 1300 and ethucc 00:24:16.320 --> 00:24:18.409 align:start position:0% one and then eth die is 1300 and ethucc is<00:24:16.620> 1200<00:24:16.980> we<00:24:17.520> still<00:24:17.640> have<00:24:17.760> like<00:24:17.940> some<00:24:18.240> some 00:24:18.409 --> 00:24:18.419 align:start position:0% is 1200 we still have like some some 00:24:18.419 --> 00:24:20.450 align:start position:0% is 1200 we still have like some some imbalance<00:24:18.960> on<00:24:19.080> that<00:24:19.260> right<00:24:19.799> and<00:24:19.980> so<00:24:20.100> I<00:24:20.220> mean<00:24:20.340> I 00:24:20.450 --> 00:24:20.460 align:start position:0% imbalance on that right and so I mean I 00:24:20.460 --> 00:24:21.830 align:start position:0% imbalance on that right and so I mean I agree<00:24:20.640> with<00:24:20.700> you<00:24:20.820> it's<00:24:21.000> it's<00:24:21.179> a<00:24:21.600> good<00:24:21.659> first 00:24:21.830 --> 00:24:21.840 align:start position:0% agree with you it's it's a good first 00:24:21.840 --> 00:24:23.510 align:start position:0% agree with you it's it's a good first step<00:24:22.080> maybe<00:24:22.260> but<00:24:22.500> we<00:24:22.679> kind<00:24:22.799> of<00:24:22.919> already<00:24:23.039> aimed 00:24:23.510 --> 00:24:23.520 align:start position:0% step maybe but we kind of already aimed 00:24:23.520 --> 00:24:25.010 align:start position:0% step maybe but we kind of already aimed for<00:24:23.640> the<00:24:23.700> for<00:24:23.880> the<00:24:24.120> second<00:24:24.240> you<00:24:24.539> know<00:24:24.600> the<00:24:24.720> Holy 00:24:25.010 --> 00:24:25.020 align:start position:0% for the for the second you know the Holy 00:24:25.020 --> 00:24:27.169 align:start position:0% for the for the second you know the Holy Grail<00:24:25.320> is<00:24:25.500> re-fragmenting<00:24:26.220> the 00:24:27.169 --> 00:24:27.179 align:start position:0% Grail is re-fragmenting the 00:24:27.179 --> 00:24:28.970 align:start position:0% Grail is re-fragmenting the um<00:24:27.380> re-aggregating<00:24:28.380> the<00:24:28.559> fragmented 00:24:28.970 --> 00:24:28.980 align:start position:0% um re-aggregating the fragmented 00:24:28.980 --> 00:24:30.590 align:start position:0% um re-aggregating the fragmented liquidity<00:24:29.460> space<00:24:29.640> that<00:24:29.880> we<00:24:30.000> have<00:24:30.059> on<00:24:30.179> ethereum 00:24:30.590 --> 00:24:30.600 align:start position:0% liquidity space that we have on ethereum 00:24:30.600 --> 00:24:33.649 align:start position:0% liquidity space that we have on ethereum and<00:24:31.200> therefore<00:24:31.440> we<00:24:31.559> went<00:24:31.679> multi-dimensional 00:24:33.649 --> 00:24:33.659 align:start position:0% and therefore we went multi-dimensional 00:24:33.659 --> 00:24:35.870 align:start position:0% and therefore we went multi-dimensional um great<00:24:33.960> talk<00:24:34.200> I<00:24:34.679> think<00:24:34.799> like<00:24:35.280> one<00:24:35.580> question 00:24:35.870 --> 00:24:35.880 align:start position:0% um great talk I think like one question 00:24:35.880 --> 00:24:38.870 align:start position:0% um great talk I think like one question on<00:24:36.539> kind<00:24:36.840> of<00:24:36.900> like<00:24:37.100> seeing<00:24:38.100> liquidity<00:24:38.640> effect 00:24:38.870 --> 00:24:38.880 align:start position:0% on kind of like seeing liquidity effect 00:24:38.880 --> 00:24:41.810 align:start position:0% on kind of like seeing liquidity effect rent<00:24:39.240> between<00:24:39.539> l1s<00:24:40.140> and<00:24:40.260> l2s<00:24:40.740> how<00:24:41.400> do<00:24:41.460> you<00:24:41.640> see 00:24:41.810 --> 00:24:41.820 align:start position:0% rent between l1s and l2s how do you see 00:24:41.820 --> 00:24:43.549 align:start position:0% rent between l1s and l2s how do you see it<00:24:42.000> kind<00:24:42.240> of<00:24:42.360> like 00:24:43.549 --> 00:24:43.559 align:start position:0% it kind of like 00:24:43.559 --> 00:24:46.190 align:start position:0% it kind of like um<00:24:43.620> like<00:24:44.039> is<00:24:44.640> there<00:24:44.820> a<00:24:44.940> way<00:24:45.059> on<00:24:45.299> how<00:24:45.600> Cole<00:24:46.020> swap 00:24:46.190 --> 00:24:46.200 align:start position:0% um like is there a way on how Cole swap 00:24:46.200 --> 00:24:48.649 align:start position:0% um like is there a way on how Cole swap could<00:24:46.380> settle<00:24:46.679> like<00:24:46.980> cross<00:24:47.280> layer<00:24:48.059> one<00:24:48.419> like 00:24:48.649 --> 00:24:48.659 align:start position:0% could settle like cross layer one like 00:24:48.659 --> 00:24:50.810 align:start position:0% could settle like cross layer one like cross<00:24:48.960> layer<00:24:49.740> twos<00:24:50.039> because<00:24:50.280> I<00:24:50.460> think<00:24:50.580> like 00:24:50.810 --> 00:24:50.820 align:start position:0% cross layer twos because I think like 00:24:50.820 --> 00:24:51.830 align:start position:0% cross layer twos because I think like yeah 00:24:51.830 --> 00:24:51.840 align:start position:0% yeah 00:24:51.840 --> 00:24:53.510 align:start position:0% yeah it's<00:24:52.260> probably<00:24:52.440> like<00:24:52.679> the<00:24:52.860> next<00:24:53.039> problem<00:24:53.280> in 00:24:53.510 --> 00:24:53.520 align:start position:0% it's probably like the next problem in 00:24:53.520 --> 00:24:56.450 align:start position:0% it's probably like the next problem in like<00:24:53.700> every<00:24:53.880> view<00:24:54.179> yeah<00:24:54.960> I<00:24:55.320> mean<00:24:55.500> yeah<00:24:55.919> we<00:24:56.100> are 00:24:56.450 --> 00:24:56.460 align:start position:0% like every view yeah I mean yeah we are 00:24:56.460 --> 00:24:58.190 align:start position:0% like every view yeah I mean yeah we are definitely<00:24:56.700> I<00:24:56.940> think<00:24:57.120> one<00:24:57.480> one<00:24:57.720> problem<00:24:57.960> that 00:24:58.190 --> 00:24:58.200 align:start position:0% definitely I think one one problem that 00:24:58.200 --> 00:24:59.750 align:start position:0% definitely I think one one problem that we're<00:24:58.320> trying<00:24:58.559> to<00:24:58.679> solve<00:24:58.919> rather<00:24:59.340> sooner<00:24:59.640> than 00:24:59.750 --> 00:24:59.760 align:start position:0% we're trying to solve rather sooner than 00:24:59.760 --> 00:25:01.730 align:start position:0% we're trying to solve rather sooner than later<00:24:59.940> is<00:25:00.240> to<00:25:00.419> just<00:25:00.600> access<00:25:00.840> liquidity<00:25:01.500> on 00:25:01.730 --> 00:25:01.740 align:start position:0% later is to just access liquidity on 00:25:01.740 --> 00:25:03.169 align:start position:0% later is to just access liquidity on another<00:25:01.919> chain<00:25:02.220> through<00:25:02.640> the<00:25:02.820> solver 00:25:03.169 --> 00:25:03.179 align:start position:0% another chain through the solver 00:25:03.179 --> 00:25:05.450 align:start position:0% another chain through the solver abstraction<00:25:03.659> so<00:25:04.440> right<00:25:04.679> now<00:25:04.799> if<00:25:05.159> you're<00:25:05.280> for 00:25:05.450 --> 00:25:05.460 align:start position:0% abstraction so right now if you're for 00:25:05.460 --> 00:25:06.710 align:start position:0% abstraction so right now if you're for example<00:25:05.640> trading<00:25:05.940> on<00:25:06.059> polygon<00:25:06.419> a<00:25:06.600> large 00:25:06.710 --> 00:25:06.720 align:start position:0% example trading on polygon a large 00:25:06.720 --> 00:25:08.390 align:start position:0% example trading on polygon a large amount<00:25:06.960> you<00:25:07.140> have<00:25:07.260> to<00:25:07.380> potentially<00:25:07.860> bridge<00:25:08.100> to 00:25:08.390 --> 00:25:08.400 align:start position:0% amount you have to potentially bridge to 00:25:08.400 --> 00:25:10.669 align:start position:0% amount you have to potentially bridge to mainnet<00:25:08.880> trade<00:25:09.600> there<00:25:09.720> Bridge<00:25:10.080> back<00:25:10.380> and 00:25:10.669 --> 00:25:10.679 align:start position:0% mainnet trade there Bridge back and 00:25:10.679 --> 00:25:11.870 align:start position:0% mainnet trade there Bridge back and that's<00:25:10.799> kind<00:25:10.980> of<00:25:11.100> annoying<00:25:11.340> from<00:25:11.520> a<00:25:11.640> user 00:25:11.870 --> 00:25:11.880 align:start position:0% that's kind of annoying from a user 00:25:11.880 --> 00:25:13.789 align:start position:0% that's kind of annoying from a user perspective<00:25:12.240> because<00:25:12.840> we<00:25:13.140> already<00:25:13.320> have<00:25:13.620> this 00:25:13.789 --> 00:25:13.799 align:start position:0% perspective because we already have this 00:25:13.799 --> 00:25:15.649 align:start position:0% perspective because we already have this abstraction<00:25:14.220> of<00:25:14.400> solvers<00:25:14.940> that<00:25:15.360> can<00:25:15.480> just 00:25:15.649 --> 00:25:15.659 align:start position:0% abstraction of solvers that can just 00:25:15.659 --> 00:25:17.390 align:start position:0% abstraction of solvers that can just happen<00:25:15.780> under<00:25:16.080> the<00:25:16.260> hood<00:25:16.380> right<00:25:16.799> the<00:25:17.039> solver 00:25:17.390 --> 00:25:17.400 align:start position:0% happen under the hood right the solver 00:25:17.400 --> 00:25:19.190 align:start position:0% happen under the hood right the solver can<00:25:17.640> do<00:25:17.940> the<00:25:18.120> bridging<00:25:18.419> swapping<00:25:18.840> bridging 00:25:19.190 --> 00:25:19.200 align:start position:0% can do the bridging swapping bridging 00:25:19.200 --> 00:25:20.990 align:start position:0% can do the bridging swapping bridging back<00:25:19.320> for<00:25:19.559> you<00:25:19.740> and<00:25:19.919> just<00:25:20.100> you<00:25:20.340> know<00:25:20.400> well 00:25:20.990 --> 00:25:21.000 align:start position:0% back for you and just you know well 00:25:21.000 --> 00:25:22.010 align:start position:0% back for you and just you know well needs<00:25:21.360> to<00:25:21.419> let<00:25:21.480> you<00:25:21.600> know<00:25:21.720> that<00:25:21.840> you<00:25:21.960> might 00:25:22.010 --> 00:25:22.020 align:start position:0% needs to let you know that you might 00:25:22.020 --> 00:25:23.270 align:start position:0% needs to let you know that you might have<00:25:22.140> to<00:25:22.200> wait<00:25:22.320> a<00:25:22.500> little<00:25:22.559> bit<00:25:22.679> longer<00:25:22.980> but<00:25:23.100> you 00:25:23.270 --> 00:25:23.280 align:start position:0% have to wait a little bit longer but you 00:25:23.280 --> 00:25:24.649 align:start position:0% have to wait a little bit longer but you as<00:25:23.400> a<00:25:23.580> user<00:25:23.760> don't<00:25:23.880> have<00:25:24.059> to<00:25:24.179> worry<00:25:24.299> about<00:25:24.419> it 00:25:24.649 --> 00:25:24.659 align:start position:0% as a user don't have to worry about it 00:25:24.659 --> 00:25:27.169 align:start position:0% as a user don't have to worry about it but<00:25:25.440> then<00:25:25.620> of<00:25:26.100> course<00:25:26.279> the<00:25:26.460> the<00:25:26.580> true<00:25:26.820> Holy 00:25:27.169 --> 00:25:27.179 align:start position:0% but then of course the the true Holy 00:25:27.179 --> 00:25:28.789 align:start position:0% but then of course the the true Holy Grail<00:25:27.419> is<00:25:27.600> to<00:25:27.720> just<00:25:27.840> have<00:25:28.020> one<00:25:28.380> price<00:25:28.559> per 00:25:28.789 --> 00:25:28.799 align:start position:0% Grail is to just have one price per 00:25:28.799 --> 00:25:31.909 align:start position:0% Grail is to just have one price per token<00:25:29.220> per<00:25:29.520> block<00:25:30.179> across<00:25:30.720> many<00:25:31.080> chains<00:25:31.500> and<00:25:31.740> I 00:25:31.909 --> 00:25:31.919 align:start position:0% token per block across many chains and I 00:25:31.919 --> 00:25:33.230 align:start position:0% token per block across many chains and I think<00:25:32.039> it's<00:25:32.279> an<00:25:32.460> it's<00:25:32.700> a<00:25:32.820> very<00:25:32.940> interesting 00:25:33.230 --> 00:25:33.240 align:start position:0% think it's an it's a very interesting 00:25:33.240 --> 00:25:34.730 align:start position:0% think it's an it's a very interesting research<00:25:33.539> problem<00:25:33.779> which<00:25:34.080> we've<00:25:34.380> where<00:25:34.559> we've 00:25:34.730 --> 00:25:34.740 align:start position:0% research problem which we've where we've 00:25:34.740 --> 00:25:36.049 align:start position:0% research problem which we've where we've touched<00:25:34.980> the<00:25:35.100> surface<00:25:35.340> on<00:25:35.520> but<00:25:35.700> not<00:25:35.820> gone 00:25:36.049 --> 00:25:36.059 align:start position:0% touched the surface on but not gone 00:25:36.059 --> 00:25:37.669 align:start position:0% touched the surface on but not gone super<00:25:36.360> deep<00:25:36.539> yet 00:25:37.669 --> 00:25:37.679 align:start position:0% super deep yet 00:25:37.679 --> 00:25:40.070 align:start position:0% super deep yet um<00:25:37.820> synchronicity<00:25:38.820> between<00:25:39.000> chains<00:25:39.659> maybe 00:25:40.070 --> 00:25:40.080 align:start position:0% um synchronicity between chains maybe 00:25:40.080 --> 00:25:41.390 align:start position:0% um synchronicity between chains maybe you<00:25:40.260> have<00:25:40.320> to<00:25:40.440> do<00:25:40.559> some<00:25:40.679> locking<00:25:40.980> of<00:25:41.100> funds 00:25:41.390 --> 00:25:41.400 align:start position:0% you have to do some locking of funds 00:25:41.400 --> 00:25:43.310 align:start position:0% you have to do some locking of funds like<00:25:41.580> there's<00:25:42.059> actually<00:25:42.240> Mohammed<00:25:43.200> is 00:25:43.310 --> 00:25:43.320 align:start position:0% like there's actually Mohammed is 00:25:43.320 --> 00:25:44.450 align:start position:0% like there's actually Mohammed is sitting<00:25:43.559> in<00:25:43.620> the<00:25:43.679> crowd<00:25:43.860> there's<00:25:44.039> actually<00:25:44.220> a 00:25:44.450 --> 00:25:44.460 align:start position:0% sitting in the crowd there's actually a 00:25:44.460 --> 00:25:46.370 align:start position:0% sitting in the crowd there's actually a hackathon<00:25:45.179> project<00:25:45.419> at<00:25:45.600> Amsterdam<00:25:46.200> that 00:25:46.370 --> 00:25:46.380 align:start position:0% hackathon project at Amsterdam that 00:25:46.380 --> 00:25:48.230 align:start position:0% hackathon project at Amsterdam that looked<00:25:46.559> a<00:25:46.679> little<00:25:46.740> bit<00:25:46.799> into<00:25:46.980> this<00:25:47.279> but<00:25:48.059> yeah 00:25:48.230 --> 00:25:48.240 align:start position:0% looked a little bit into this but yeah 00:25:48.240 --> 00:25:49.610 align:start position:0% looked a little bit into this but yeah it's<00:25:48.360> very<00:25:48.480> early<00:25:48.600> days<00:25:48.840> for<00:25:49.080> that<00:25:49.200> so<00:25:49.380> so 00:25:49.610 --> 00:25:49.620 align:start position:0% it's very early days for that so so 00:25:49.620 --> 00:25:51.590 align:start position:0% it's very early days for that so so nothing<00:25:50.159> that<00:25:50.460> you<00:25:50.880> could<00:25:51.059> build<00:25:51.360> on<00:25:51.480> right 00:25:51.590 --> 00:25:51.600 align:start position:0% nothing that you could build on right 00:25:51.600 --> 00:25:52.730 align:start position:0% nothing that you could build on right now 00:25:52.730 --> 00:25:52.740 align:start position:0% now 00:25:52.740 --> 00:25:56.179 align:start position:0% now thank<00:25:53.159> you<00:25:53.340> for<00:25:53.460> leaks<00:25:53.820> thank<00:25:54.120> you