We have teamed up with OpenMEV, to protect Sushi traders from MEV attacks, and enable gas free trades — to get Sushi ready for our glorious degen future.
But what is MEV, how do users actually lose money and who receives the funds?
Maximal (formerly “Miner”) Extractable Value (MEV) is the value that can be extracted by including, excluding, and changing the order of transactions within a block. In PoW chains, this power lies with miners — In PoS chains with validators.
However, miners don’t hunt for MEV opportunities. Instead, traders or automated bots discover profitable trades, and forward them to miners who include them in the blocks they are mining.
These profitable trades might be anything from arbitrage, ie. leveling price differences between exchanges or trading pairs, to sandwich attacks or liquidations in lending markets.
MEV is here to stay. In fact, it’s growing. (See https://explore.flashbots.net/) With users losing more than $500k in MEV extraction value on an average day, in the last 30 days.
This is where Sushi Guard comes in.
Sushi Guard protects traders from these attacks, by extracting MEV opportunities and returning the earned funds plus gas fees back to our users. Here is how:
The OpenMEV matching engine matches all Sushi trades that enabled Sushi Guard.
It extracts opportunities protected inside the OpenMEV platform, using a private communication channel between Sushi traders and miners. Which hinders external MEV attackers from checking Sushi trades for arbitrage opportunities.
And once the trades are executed, Sushi Guard returns the extracted value, plus your gas fee.
And best of all: This service is free and easy to activate!
Simply click the setting icon on https://app.sushi.com/en/swap and activate Sushi Guard through the OpenMEV toggle.
📖 Read more about OpenMEV’s implementation at https://docs.openmev.org/sushi
To automate the claiming of MEV extraction reimbursements, there is a proposal currently live on the Sushi forum.
With this upgrade, users will
- get profits immediately distributed to the Sushiswap Protocol.
- receive rebates paid back in $SUSHI
- receive additional sources of paid incentives for Onsen incentives
- and more!
Have a read and make your vote count: