Key Takeaways
Modular architectures are coming to maturity across the ecosystem to scale bandwidth and throughput of cryptocurrency. One example of such is the Ethereum modular architecture, with its beacon chain, its execution chain, its Layer 2s, and soon its shards.
This paper investigates whether there exists extractable value that depends on the ordering of transactions in two or more domains jointly.
It finds that Cross-Domain MEV can be used to measure the incentive for transaction sequencers in different domains to collude with one another, and studies the scenarios in which there exists such an incentive.
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