Multiblock MEV opportunities & protections in dynamic AMMs

TL;DR

This paper investigates how dynamic weight changes in AMMs create new MEV attack vectors, analyzes protections against these attacks, and uses extensive simulations to evaluate attack success and defenses.

Contribution

It introduces the concept of multi-block MEV attacks in dynamic AMMs and proposes inter-block protections, supported by large-scale simulations.

Findings

Dynamic weight changes can lead to multi-block MEV attacks.

Proposed protections can effectively defend against these attacks.

Simulations show both attack success rates and defense effectiveness.

Abstract

Maximal Extractable Value (MEV) in Constant Function Market Making is fairly well understood. Does having dynamic weights, as found in liquidity boostrap pools (LBPs), Temporal-function market makers (TFMMs), and Replicating market makers (RMMs), introduce new attack vectors? In this paper we explore how inter-block weight changes can be analogous to trades, and can potentially lead to a multi-block MEV attack. New inter-block protections required to guard against this new attack vector are analysed. We also carry our a raft of numerical simulations, more than 450 million potential attack scenarios, showing both successful attacks and successful defense.