MEV and Why It Matters

Maximum Extractable Value (MEV) refers to the extra value validators (or miners) can capture by reordering, including, or censoring transactions in the blocks they produce. MEV can be economically significant – for instance, by prioritizing profitable arbitrage or liquidation transactions, a block producer might earn extra fees. However, if MEV is left unchecked, it can lead to unfair outcomes and network inefficiencies (like transaction spamming or user front-running). That’s why HyperFlash is designed to integrate MEV capture in a fair, transparent way. Instead of individual validators taking all MEV or searchers congesting the network with spam, HyperFlash will use coordinated MEV auctions to efficiently extract this value and share it with stakers. Projects like Jito on Solana have demonstrated the benefit of such an approach: Jito uses an off-chain block auction where searchers bid to include profitable transaction bundles, and a portion of those fees is passed to Jito’s stakers. This not only increases staker yields but also reduces network spam since searchers compete via bids rather than by flooding the network. By capturing MEV through an orderly process, HyperFlash will improve the economic value for participants while keeping the playing field fair.

HyperFlash’s design is informed by cutting-edge research on MEV fairness, notably economic mechanisms. We propose a structured auction model for MEV that makes value extraction more transparent and equitable. Instead of block producers arbitrarily picking transactions or searchers submitting countless duplicate transactions, each searcher submits a single sealed bid for block space. This approach can eliminate the incentive to spam the network and prevent validators from unfairly manipulating transaction order. The auction ensures the highest bidder wins inclusion, and the competition drives the bids up to a fair level. Crucially, it also means the MEV is partly returned to the ecosystem (e.g., to stakers) rather than all being kept by a miner or wasted on failed transactions. HyperFlash intends to improve MEV fairness – block producers in HyperFlash’s system should no longer be able to extract value without sharing, or reorder transactions for their sole gain. Instead, the value is captured via auctions and distributed according to clear rules. In summary, HyperFlash’s purpose is to marry the liquidity and user-friendliness of LSTs with a fair MEV capture mechanism, ensuring both average users and developers benefit from a more efficient and just HyperEVM ecosystem.