General questions

If you are looking for more details on Slot Tenants and Block Producers head to docs here.

What is MEV?

“Miner Extractable Value,” also known as “Maximal Extractable Value,” is the monetary/financial value that miners can extract by intentionally changing the order of transactions on each Ethereum block. Changing the order in which transactions are processed allows miners to create and capture inter-block arbitrage opportunities. These typically appear in the form of “sandwich attacks”, “liquidation”, “arbitrages”, and “frontrunning.”

What is Eden Network?

Eden Network is a priority transaction network that protects Ethereum traders from malicious MEV and arbitrary reordering. In technical terms, Eden Network is an optional, non-consensus breaking ordering protocol. The protocol creates a transparent and fair set of rules to order transactions within each block.

Eden Network takes a user-focused approach to the MEV problem, and includes stronger incentives for all stakeholders driven by a protocol token. It comprises a novel transaction ordering mechanism and a private relayer that any user, application, or bot can leverage in order to obtain state guarantees around submitted transactions.

The goals of the Eden Network are:

  • Improve earnings for block producers and increase consensus-level security
  • Protect users from malicious MEV (frontrunning, sandwich attacks, etc.) and reduce the negative externalities MEV has on Ethereum
  • Tokenize MEV, and democratize access to it using network token incentives

How does Eden Network interact with Ethereum and EIP-1559?

Eden Network respects the ethos and ideology Ethereum was built on.

Being able to order transactions in a given block is something that block producers have been offered and use consistently to increase revenue by prioritizing high value transactions from bots or traders.

Eden Network transactions must pay the EIP-1559 base fee. Transactions that pay the base fee are then processed in a fair and transparent manner based on the amount of EDEN staked.

Transparency is a core goal of the Eden Network as we have seen other solutions dominate block space with failed transactions using closed systems which can leave the average user struggling to execute trades.

The network and economy is designed to incentivize block producers to not engage in any activity that would jeopardise the Ethereum blockchain. A lot of discussion over the past few months has involved bots using time-bandit attacks to reorder the blockchain or attempts to artificially reduce the base fee - Eden Network disincentives this type of behaviour.

Block producers that engage in the above behavior jeopardize all future revenue from the Eden Network. This is one of the largest opportunity costs to block producers for these types of actions.

Ethereum's consensus rules are of the utmost importance to Eden Network and as a network that lives on and adds utility to Ethereum it would never condone any actor that intends to break these as the results could be catastrophic.

Who can participate in Eden Network?

Eden Network respects the ethos and ideology Ethereum was built on.

Eden Network is designed to serve applications, Traders and Block producers.

  • Applications, Bots, and Funds can stake EDEN to become “slot tenants” and rent priority blockspace in order to provide state guarantees and best execution to their users.
  • Traders can buy and stake EDEN to gain access to Eden Network, where their transactions are processed privately
  • Block Producers can participate in EDEN network by ordering transactions as per the rules of the network, and receive EDEN tokens in order to augment their revenues

When you say “tokenize MEV”, what does that mean?

EDEN Token is the primary coordination unit of the network. Economically, it serves two important purposes.

  • First, EDEN token are the unit used to conduct the continuous auction for claim to priority blockspace, and provides users access to private relayer. It therefore captures demand for reliable MEV extraction on a block-by-block basis as expressed by top bots and funds.

  • Second, EDEN tokens are burned on a daily basis under the Harberger tax imposed on slot tenants to ensure that there is a frequent rotation of top addresses, creating a constant demand for EDEN tokens.

What utility does the EDEN token serve?

Functionally, EDEN is the unit used to conduct the continuous auction for priority blockspace, and provides users access to Eden Network.

How does Eden Network compare to Flashbots?

Eden Network augments Flashbots by adding additional ways for users and applications to get guarantees on the placement of their transactions and for block producers to earn rewards. Eden Network is compatibile with Flashbots, and block producers are free to continue mining Flashbots bundles.

What is Eden Network’s stance on malicious re-orgs, artifical base fee reduction, and other network-antagonistic behavior?

Eden Network does not endorse miner re-orgs or other attacks and requires miners to sign a pledge stating that they will abstain from this behavior under penalty of expulsion from the Network.

In the event of a malicious actor, EdenDAO, the decentralized organization that governs the protocol, may slash bad actors or completely remove them from the Eden Network.

Traders FAQ

Why would I use Eden Network?

Quite simply it is a better way to trade on Ethereum. All you have to do is stake 100 EDEN, add Eden RPC to you wallet and then pay the base gas fee + the minimum priority fee to get into the block and your trade will sit above any traders using the Ethereum public transaction pool and be protected from malicious MEV.

How do I start protecting and upgrading my trades with Eden Network?

There are currently two ways to do this, with each method offering unique benefits. The first way is to simply use a DEX that has staked enough EDEN tokens to become a “slot tenant”, occupying priority blockspace on the Ethereum network for an extended period of time.

The second option is to integrate with Eden RPC directly by staking EDEN tokens and setting up MetaMask with the Eden RPC. By integrating directly, all transactions submitted on Ethereum will be processed through Eden’s private network, will receive MEV-protection, as well as priority block positioning as per position on the EDEN leaderboard.

To integrate start using Eden RPC you must do three steps:

  • Buy EDEN
  • Stake EDEN
  • Setup MetaMask to submit to Eden RPC
Please head over here for a full explanation of each step.

Can I integrate with Eden RPC and trade on Slot Tenant?

Yes. Users can stack benefits by both directly integrating with Eden RPC and using Slot Tenant for swaps. Combine the two for ultimate Eden Network super powers!

Can I use Eden RPC to protect my trade on any dapp on Ethereum?

Eden RPC endpoint will work on any Ethereum Layer 1 dapp. You will not get the same priority blockspace as a slot owner but all your trades will be prioritised above the public mempool when an Eden Block Producer mines a block. You will also always be protected from malicious MEV when using the Eden Network.

To learn how to send transactions via Eden RPC click here.

Does Eden RPC give me any benefits when I buy NFTs?

Yes - you will also gain priority over the Ethereum Public Transaction Pool regardless of their tip when a new NFT project launches for every block an Eden Block Producer mines.

What is the minimum number of EDEN tokens I must stake to get access to Eden Relay?.

100 tokens (tuneable by governance).

As a trader, do I stake my EDEN tokens once to gain access to Eden Network, or do I have to re-stake or add tokens down the line to maintain access?

Users only have to stake once to get access to Eden Network, and staked tokens will not be burned. However, transaction ordering within Eden Network is determined by staked token volume, so over time you may want to add EDEN tokens to maintain or improve your ranking.

General MEV

What is MEV?

“Miner Extractable Value,” also known as “Maximal Extractable Value,” is the monetary/financial value that miners can extract by intentionally changing the order of transactions on each Ethereum block. Changing the order in which transactions are processed allows miners to create and capture arbitrage opportunities. These typically appear in the form of “sandwich attacks”, “liquidations”, and “frontrunning.”

Why should I care about MEV?

The source of revenue that funds MEV inherently comes partly at the expense of everyday traders and DeFi users. This malicious MEV is extracted from unknowing Ethereum users in the form of failed trades, artificially higher prices, and forced liquidations. If you have transacted on a non-MEV protected DEX with any sort of regularity in the past 6 months, you likely have been exploited by malicious MEV.

What is a “sandwich attack?”

A situation where a trader’s purchase order (on a non protected DEX) is exploited by bots to extract value (equal to the maximum value allowed by the slippage level set by the trader). Ideally, slippage is used as a buffer, where if market prices are moving quickly, the trader has some wiggle room to push the transaction through. With the introduction of MEV arbitrage bots however, bots are exploiting this slippage threshold to extract it even if market prices are stable. Instead of slippage being a backup/safety guard for passing transactions through, bots are exploiting this “slack” and extracting value from it.

What is “frontrunning?”

A situation where a user’s trade is outcompeted at the originally quoted price, which results in trade failure (and incurring a cancelation fee). When a user makes a trade on a non MEV protected DEX, their upcoming trade is sent to the public waiting pool (the public transaction pool). If large enough to cause price movement, bots will slip in a faster trade before yours is processed, causing the price to increase before your transaction is processed. Your trade will fail, and you will have to try again at a higher price, which the bot will sell to you for a small profit.