https://www.youtube.com/watch?v=5TSj_WIY5EU
Attendees - Michael Ippolito, Dan Robinson (Paradigm), Xin Wan (Research at Uniswap), Robert Miller(Flashbots)
Order flow like swaps, transactions have value, OFA is the willingness to pay for (bid) the opportunity to interact with this order flow
Right to backrun user’s transactions, any trade that generates some MEV
Flashbots has created an OFA mev-share, Users choose what transaction data to hide and what to reveal, precursor to Suave
OF Auctions are also related to Intent based systems
RM: Order flow auctions is creating centralisation (with off chain auctions), Suave is platform where developers can create OFA with smart contracts in a decentralised blockchains with built in credibility and privacy
MEV is mainly generated by - swaps (with arbitrages and sandwiches), followed by lending liquidations, NFT, Gaming
RM: Where is the boundary of Swap? A user who wants back-run someone who is adding liquidity for a new token. The OFA for this is very different than a regular swap
UniswapX - the protocol as described is mostly onchain and is mostly about declining Dutch order (decaying price)
Right now we do have some off chain pieces which we would try to decentralise
where to start the decay, where to end the decay
Xin: To create a nice user experience and correctly parametrize the orders - where to start the decay, when to end the decay, we have an off chain piece at the start. - we ask a bunch of folks what is your best quote, where it should start ….?
Dan: I see it is a amalgamation of 2order flow auction - combination of dutch auction and sealed bid first price auction (which is offchain, because of limitation of what you can do onchain, latency). How do we find the right starting price of Dutch auction?
we decay 1 or 2 basis points in a second, that is why we need RFQ system
RM: Why would you need an offchain RFQ in order to see where the starting price?
Dan: What is the alternative? Start somewhere
There are 2 auctions -