Private, Anonymous, Collateralizable Commitments vs. MEV

TL;DR

This paper introduces PACCs, a framework for private, anonymous, collateralizable commitments in smart contracts, which can eliminate MEV in DeFi by shifting it to censorship, demonstrated through Ethereum implementation and benchmarks.

Contribution

The paper presents PACCs, a novel cryptographic framework enabling private, collateralizable commitments that can mitigate MEV in DeFi applications.

Findings

PACCs effectively eliminate MEV in DeFi.

The Ethereum implementation demonstrates PACCs are practical and feasible.

Benchmarks show PACCs can be integrated without significant overhead.

Abstract

In this work, we introduce the private, anonymous, collateralizable commitments (PACCs) framework. PACCs allow any smart contract wallet holder to collateralize a claim, request, or commitment in general, in a private and anonymous manner. PACCs can prove arbitrarily much or little about the wallet generating the commitment, and/or the transaction which is being committed. We demonstrate that PACCs can be applied to effectively eliminate maximal-extractable value (MEV) in DeFi where it currently occurs, shifting MEV instead to censorship. After describing our protocol with detail, we provide an implementation using the Ethereum blockchain, and whose benchmarks prove how PACCs are completely feasible.