This detailed analysis introduces the Private, Anonymous, Collateralizable Commitments (PACCs) framework as a solution to eliminate maximal-extractable value (MEV) in decentralized finance (DeFi). The paper discusses the limitations of existing solutions and proposes an improved variant of single-use collateralized commitments. It outlines how PACCs can be applied effectively to shift MEV opportunities from decentralized exchanges (DEXs), liquidations, and auctions to censorship. The protocol is described with a focus on smart contract wallets and zero-knowledge proofs. The paper also provides insights into related work, cryptographic primitives, commitment mappings, relayers, and the implementation of PACCs using the Ethereum blockchain. Furthermore, it discusses the properties of PACCs and their potential applications in various scenarios such as sealed-bid auctions, decentralized exchanges, request-for-quote protocols, and automated market makers (AMMs).
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by Conor McMena... at arxiv.org 03-25-2024
https://arxiv.org/pdf/2301.12818.pdfDeeper Inquiries