Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
mev-the-hidden-tax-of-crypto
Blog

Why SUAVE Could Redefine Blockchain Fairness

An analysis of how SUAVE's encrypted mempool and decentralized auction model aims to dismantle the MEV cartel, commoditize block space, and return value to users and validators.

introduction
THE SUAVE THESIS

Introduction

SUAVE is a specialized chain that separates transaction ordering from execution to eliminate MEV as a protocol-level primitive.

SUAVE separates ordering from execution. It proposes a new blockchain architecture where a dedicated network, not the execution layer, is responsible for transaction ordering and block building. This decoupling is the fundamental mechanism for removing proposer extractable value (POV) from L1s like Ethereum and L2s like Arbitrum.

Fairness is a technical specification. The goal is not subjective fairness but credibly neutral sequencing. By creating a competitive, permissionless marketplace for block building, SUAVE forces searchers and builders like Flashbots to compete on price and efficiency, not on exclusive access to a validator.

This redefines the L1/L2 stack. Execution layers become pure state transition functions. The SUAVE chain becomes the universal mempool and decentralized block builder, a role currently dominated by centralized entities. This architecture mirrors how intent-based systems like UniswapX and CowSwap abstract execution, but applies it to the entire transaction supply chain.

thesis-statement
THE MECHANISM

The Core Argument: Decentralization Through Commoditization

SUAVE redefines MEV fairness by commoditizing the block building process itself, separating execution from consensus.

The core innovation is decoupling block building from validation. Current chains like Ethereum and Solana bundle these roles, forcing validators to be the primary MEV extractors. SUAVE creates a dedicated, competitive market for block building, turning a privileged function into a commodity service.

This commoditization attacks centralization at its root. Specialized builders like Flashbots and bloXroute dominate because they control order flow and sophisticated algorithms. SUAVE's shared mempool and execution environment standardizes access, enabling smaller players to compete on price and efficiency.

Fairness emerges from economic competition, not protocol rules. Unlike naive first-come-first-serve mempools or complex PBS implementations, SUAVE's design ensures the best execution wins. This mirrors how commodity markets for compute (AWS) or bandwidth (Cloudflare) drive prices down and quality up.

Evidence: The MEV-Boost relay market demonstrates demand. Over 90% of Ethereum blocks are built externally via MEV-Boost, proving validators willingly outsource for better revenue. SUAVE generalizes this model into a universal, chain-agnostic auction layer.

market-context
THE INCENTIVE TRAP

The MEV Cartel: How We Got Here

The current MEV supply chain is a cartel because its architecture centralizes profit and control.

Searcher-Builder-Proposer separation created a cartel. This modular design, while efficient, concentrates power in a few dominant builders like Flashbots and bloXroute. They control the order flow and extract the majority of value, turning validators into passive fee collectors.

Permissioned relay networks are the choke point. Builders submit blocks to proposers through trusted relays, which act as gatekeepers. This creates a single point of failure and censorship, as seen when OFAC compliance filtered transactions post-Tornado Cash sanctions.

The auction is broken. The current PBS model auctions block space to the highest bidder, but the bidding is opaque and restricted to a closed club. This excludes users and dApps from capturing their own value, centralizing MEV profits.

Evidence: Flashbots' MEV-Boost commands over 90% of Ethereum's block production. This market share demonstrates the cartel's effective monopoly, making the network's censorship resistance dependent on a handful of entities.

MEV & CENSORSHIP RESISTANCE

The Builder Dominance Problem: By The Numbers

Quantifying the centralization of block production and how SUAVE's decentralized block building compares to the status quo.

Key MetricCurrent Ethereum (PBS)SUAVE (Decentralized Block Building)Ideal Baseline (PoW Solo Mining)

Top 3 Builders' Market Share

85%

N/A (No Central Builders)

~0% (Theoretical)

OFAC-Compliant Block Share

78%

0% (by design)

0% (by design)

Avg. Time to Finality for Censored TX

5 mins

< 12 secs

< 12 secs

Builder Extractable Value (BEV) Capture

99% by Builders

99% by Users/Apps

100% by Miner

Required Capital to be a Builder

$10M+ (Stake + Hardware)

$0 (Code + Network)

Varies (Hardware)

Cross-Domain MEV Arbitrage Latency

~500-1200ms (Relay Network)

< 100ms (Native SUAVE Chain)

N/A

Block Builder Client Diversity

2 Major Clients (90%+ share)

Unlimited (Open Source)

Unlimited

deep-dive
THE ARCHITECTURE

How SUAVE Actually Works: Encrypted Mempool to Execution

SUAVE is a decentralized sequencer network that processes encrypted transactions to prevent frontrunning and optimize cross-chain execution.

Encrypted Mempool: Transactions are submitted as encrypted intents, hiding details from block builders and validators until execution. This prevents MEV extraction by sequencers like Flashbots, who currently see all pending transactions.

Decentralized Execution: A network of execution nodes, not a single sequencer, processes these intents. This creates a competitive marketplace for execution, similar to how UniswapX or CowSwap sources liquidity, but for cross-chain settlement.

Optimal Execution Flow: The network finds the best route across chains like Ethereum, Arbitrum, and Avalanche. It acts as a universal intent-based bridge, aggregating liquidity from protocols like Across and LayerZero to fulfill user orders.

Evidence: The design inverts the power dynamic. Today, builders on Flashbots capture >90% of Ethereum MEV. SUAVE's encrypted mempool transfers that value from sequencers back to users and decentralized executors.

protocol-spotlight
WHY SUAVE COULD REDEFINE BLOCKCHAIN FAIRNESS

The Competitive Landscape: SUAVE vs. Alternatives

Current MEV infrastructure is a fragmented, extractive market dominated by centralized searchers and builders. SUAVE proposes a unified, credibly neutral alternative.

01

The Problem: Fragmented, Opaque MEV Supply Chains

Today's MEV is captured by a cartel of private searchers and builders (e.g., Flashbots, Jito Labs) who operate proprietary order flows and opaque auctions. This creates systemic risks like centralization and value leakage from users to intermediaries.

  • Centralized Points of Failure: Reliance on a few dominant builders.
  • Inefficient Price Discovery: Fragmented auctions across Flashbots MEV-Share, CowSwap, and private channels.
  • User Exclusion: Retail gets sandwiched; value isn't returned to the chain or its users.
>80%
Builder Dominance
$1B+
Annual Extractable MEV
02

The Solution: A Universal, Programmable Preference Environment

SUAVE isn't just another chain; it's a specialized co-processor for expressing and settling preferences. It unifies the MEV supply chain by allowing users, apps, and blockchains to declare intents in a shared, competitive marketplace.

  • Unified Liquidity Pool: A single venue for cross-domain MEV (Ethereum, Arbitrum, Solana).
  • Intent-Centric Architecture: Users express what they want (e.g., "best price across Uniswap and 1inch"), not how to do it.
  • Credibly Neutral Execution: Solvers compete on a level playing field defined by SUAVE's decentralized mempool and block building.
100%
Execution Coverage
~500ms
Auction Latency
03

Killer App: The SUAVE Chain as Ultimate Block Builder

SUAVE's endgame is to become the dominant block builder for all major chains (Ethereum, rollups, Solana). By aggregating the most valuable cross-domain intents, it can outbid isolated builders, capturing and redistributing MEV more efficiently.

  • Cross-Chain Arbitrage: Native ability to coordinate trades across Ethereum, Avalanche, and layer2s like Arbitrum.
  • Proposer-Builder Separation (PBS) on Steroids: Decouples block building from proposing at an ecosystem scale.
  • Revenue Recycling: MEV profits can be directed back to source chains or users via MEV smoothing or MEV burn mechanisms.
10x+
Bid Density
-90%
Leakage
04

The Alternative: Incremental Intents (UniswapX, Across)

Existing intent-based systems like UniswapX and Across Protocol solve for better swap prices but are application-specific and rely on off-chain solvers without a shared security layer. They are partial solutions within a broken broader system.

  • Siloed Liquidity: Solvers compete per app, not globally.
  • Trust Assumptions: Require reputable, whitelisted solver networks.
  • No Block Building Rights: Cannot influence chain-level ordering, missing the largest MEV opportunities.
App-Specific
Scope
Off-Chain
Trust Model
05

The Threat: Centralized Sequencer Cartels

Rollup sequencers (e.g., Arbitrum, Optimism) and cross-chain messaging hubs (e.g., LayerZero, Axelar) are becoming de facto MEV gatekeepers. They have the power to censor, front-run, and extract value with minimal accountability, creating new centralized choke points.

  • Regulatory Attack Surface: Centralized sequencers are easy targets for compliance overreach.
  • Value Capture: MEV profits accrue to the sequencer operator, not the ecosystem.
  • Protocol Risk: A malicious or compromised sequencer can halt or reorg the chain.
Single Point
Of Failure
100%
Extraction Rate
06

The Verdict: SUAVE's Existential Bet

SUAVE bets that MEV is a public good problem requiring a dedicated, decentralized coordination layer. Its success hinges on becoming the most economically rational place to express and settle any preference. If it wins, it doesn't just capture MEV—it redefines chain-level fairness.

  • First-Principles Win: Replaces fragmented infrastructure with a unified mempool and block builder.
  • Economic Flywheel: More intents attract better solvers, leading to better execution, attracting more intents.
  • The New Standard: Could become the TCP/IP for value transfer intents, making proprietary MEV supply chains obsolete.
Winner-Takes-Most
Market Structure
Ecosystem
Value Realignment
counter-argument
THE EXECUTION RISKS

The Bear Case: Why SUAVE Might Fail

SUAVE's architectural ambition introduces critical failure points in coordination, security, and adoption.

Coordination is a Hard Problem. SUAVE's core value requires a decentralized network of specialized block builders, searchers, and validators to cooperate. This is a multi-party coordination game more complex than a single-chain sequencer, akin to the initial struggles of Cosmos IBC or Polkadot XCM.

Security is Not Inherited. The chain does not automatically inherit Ethereum's security; it must bootstrap its own validator set and economic security from zero. This creates a vulnerable launch phase where proposer-builder separation incentives are untested at scale.

Adoption Requires Forking. To capture meaningful MEV, major applications like Uniswap and Aave must modify their smart contracts to route transactions through SUAVE. This is a massive coordination hurdle that fragmented EIP-4337 account abstraction adoption.

Evidence: The total value secured by EigenLayer restakers, a comparable bootstrapping mechanism, exceeds $15B, indicating the market's high cost for new security.

FREQUENTLY ASKED QUESTIONS

Frequently Challenged Questions

Common questions about how SUAVE (Single Unifying Auction for Value Expression) could fundamentally change blockchain fairness and MEV.

SUAVE is a decentralized mempool and execution layer designed to democratize and optimize MEV (Maximal Extractable Value). It creates a unified, competitive marketplace for block space and transaction ordering, moving computation off-chain to specialized execution environments like EigenLayer and Flashbots SUAVE. This aims to break the oligopoly of searchers and builders, redistributing value back to users.

takeaways
THE SUAVE THESIS

TL;DR for Protocol Architects

SUAVE is a specialized blockchain that separates block building from proposing, aiming to dismantle MEV's structural advantages.

01

The Problem: MEV is a Structural Tax

Centralized block builders like Flashbots capture ~90% of Ethereum MEV, creating a rent-seeking layer. This leads to frontrunning, sandwich attacks, and centralization pressure on validators.

  • Extracted Value: Billions in user funds reordered annually.
  • Centralization Risk: A few builders control transaction ordering.
  • User Experience: Unpredictable slippage and failed transactions.
~90%
MEV Captured
$1B+
Annual Extract
02

The Solution: Decentralized Block Building

SUAVE introduces a separate mempool and execution network for building optimal blocks. Users express intents (e.g., 'swap X for Y at best price'), and a decentralized network of builders competes to fulfill them.

  • Intent-Centric: Shifts from transaction execution to outcome fulfillment.
  • Competitive Auction: Builders bid for the right to solve intent bundles.
  • Credible Neutrality: No single entity controls the flow of transactions.
1000+
Potential Builders
~500ms
Auction Latency
03

The Architecture: Three Core Layers

SUAVE's stack is purpose-built for its role as a universal preference chain, inspired by concepts from UniswapX and CowSwap.

  • Preference Environment: A chain where users and apps post encrypted intents and preferences.
  • Execution Network: A decentralized network that competes to solve and execute these intents.
  • Blockchain Abstraction: Aims to be chain-agnostic, serving as a pluggable mempool for Ethereum, Optimism, Arbitrum, etc.
3
Specialized Layers
EVM+
Execution Env
04

The Threat: Existing MEV Stack

Incumbents like Flashbots SUAVE, BloxRoute, and Titan are not idle. EigenLayer's shared security could bootstrap competing networks. SUAVE must achieve critical mass of intents and builders faster than incumbents can decentralize.

  • Adoption Hurdle: Needs integration from major dApps and wallets.
  • Liquidity Fragmentation: Competing with established relay networks.
  • Timing Risk: Must launch before the next bull market's MEV surge.
<24 mo
Execution Window
High
Competitive Risk
05

The Opportunity: Universal Solver Network

If successful, SUAVE becomes the HTTP for value transfer—a standard layer for expressing and fulfilling financial intent. This enables complex cross-chain MEV (like LayerZero arb) and protects users from predatory bots.

  • New Primitive: Enables trustless, optimized cross-domain settlement.
  • Revenue Shift: Redirects MEV from searchers/builders back to users and dApps.
  • Composability: A single intent can trigger actions across multiple chains atomically.
10x
More Complex Arbs
+30%
User Yield
06

The Verdict: High Risk, Existential Reward

SUAVE is not an incremental upgrade; it's a bet on re-architecting blockchain's economic core. Success means a more fair, efficient, and decentralized system. Failure means cementing the current MEV oligopoly.

  • Bull Case: Captures >50% of cross-chain intent flow by 2026.
  • Bear Case: Becomes a niche chain for long-tail assets.
  • Key Metric to Watch: Volume of intents denominated in ETH, not SUAVE's native token.
>50%
Target Market Share
ETH Volume
True KPI
ENQUIRY

Get In Touch
today.

Our experts will offer a free quote and a 30min call to discuss your project.

NDA Protected
24h Response
Directly to Engineering Team
10+
Protocols Shipped
$20M+
TVL Overall
NDA Protected Directly to Engineering Team
SUAVE: The End of MEV as a Hidden Tax on Crypto | ChainScore Blog