Overlooked Sector of Crypto Markets Is Ready for Lift-Off, Says Trader Tyler Swope
Crypto influencer Tyler Swope is shining a spotlight on three projects that are attempting to solve a crucial issue plaguing the Ethereum network.
Miner extractable value (MEV) is a hot topic among Ethereum developers, Swope tells his 228,000 subscribers. MEV is the value a miner, validator, sequencer or any privileged protocol user can garner from arbitrarily manipulating the settlement of transaction blocks on the blockchain.
MEV profits can be scooped up by the trader or miner, but when the blocks are manipulated unconventionally, it can cause inefficiencies on the blockchain.
Swope points out that last Friday, during the ongoing Scaling Ethereum summit, MEV was mentioned several times as developers attempted to hash out solutions to the puzzling problem.
While Ethereum researchers have launched the Flashbots initiative to tackle the issue, Swope outlines some tokenized crypto projects that are also addressing the MEV crisis.
KeeperDao (ROOK) is the largest market cap play in the sector, sitting at just below a $200 million evaluation.
“KeeperDao is a protocol that economically incentives pool participation in Keeper strategies which manage liquidations, rebalances, and arbitrages on decentralized finance (DeFi) applications spanning trading, exchange and lending… The goal of this Dao is to align the goal of the Keepers and the users to maximize profits rather than that value being captured by the miners.
MEV is a big piece of KeeperDao, but the big development regarding MEV from them is their HidingBook. In their Github post they describe it, ‘The HidingBook is a backend infrastructure component of the Hiding Game which hosts hidden orders only fillable by KeeperDAO keepers. It also supports client friendly APIs which enable a smooth front end user experience.
Integrating a client with the HidingBook enables the client’s users to coordinate with KeeperDAO keepers for the capture of MEV (miner extractable value). This is a win-win because both users and keepers are working together to maximize profit generation from a trade the user was going to perform anyways.’”
The analyst and trader also notes that KeeperDao does not appear to be in direct competition with Flashbots and may in fact integrate with them in the future.
Next on Swope’s list is StakeDAO (SDT), which is currently sitting at around a $50 million market cap.
“StakeDao is a piece of staked capital. Their revenue sharing Dao tokenizes their services and distributes the value back to the holders. Their application, which houses the services just went live into version two and TVL (total value locked) was over $121 million as of yesterday.”
Swope notes that StakeDao may also be introducing v2 arbitrage solutions shortly, but it’s unclear when. The project may also be in direct competition with Flashbots, because Stake is partnered with the third project Swope mentions, ArcherDao (ARCH).
Archer is a protocol for MEV extraction “just like Flashbots,” says Swope, noting that the project forked Flashbots, according to their Github.
ArcherDao is the smallest project by market cap that Swope mentions, resting at around a $34 million evaluation.
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Author: Daily Hodl Staff