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wallet-wars-smart-accounts-vs-embedded-wallets
Blog

Why User-Optimized Bundling Is a Pipe Dream Without Standards

The promise of a single-click Web3 experience hinges on bundling actions across dApps. This analysis argues that without universal standards for expressing user intent and simulating complex execution paths, this vision is technically unattainable, locking us in a fragmented wallet war.

introduction
THE STANDARDS GAP

Introduction

The promise of user-optimized bundling is unattainable without universal standards, creating a fragmented and inefficient market.

User-optimized bundling is a pipe dream without shared standards. Every bundler, from Flashbots SUAVE to EigenLayer, defines its own data formats and auction mechanisms. This forces searchers and builders to develop custom integrations for each, fragmenting liquidity and innovation.

The current landscape is a Tower of Babel. A searcher's bundle built for the Ethereum MEV-Boost ecosystem is incompatible with Solana's Jito or Cosmos' Skip Protocol. This lack of interoperability prevents the formation of a global cross-chain block space market, the core value proposition of advanced bundling.

Evidence: The MEV-Boost relay network processes ~90% of Ethereum blocks, yet its payload format is a walled garden. Searchers cannot reuse their bundle logic on other chains, forcing them to rebuild their entire business stack per ecosystem.

thesis-statement
THE PIPEDREAM

The Core Argument: Bundling Without Standards is Local Optimization

User-optimized bundling is impossible without universal standards, as current solutions are isolated islands of efficiency.

Bundlers are walled gardens. Each solution like EigenLayer AVS or Flashbots SUAVE creates a local optimum for its own domain, but cannot coordinate across chains or applications.

The user's optimal path is fragmented. A user's cross-chain swap intent requires coordination between a UniswapX solver, an Across bridge, and a Base rollup sequencer, which today operate in silos.

Local optimization creates systemic risk. A bundle optimized for Arbitrum throughput (e.g., 40k TPS) can congest the shared Ethereum data layer, creating negative externalities for the entire network.

Evidence: The MEV-Boost auction standard enabled a multi-billion dollar market. Without a similar cross-domain intent standard, user-centric bundling remains a collection of incompatible, sub-optimal tools.

deep-dive
THE ARCHITECTURAL IMPERATIVE

The Two Unbreakable Bottlenecks: Intent & Simulation

User-centric bundling fails without standardized formats for intent expression and transaction simulation.

Intent expression lacks a lingua franca. Every bundler, from UniswapX to CowSwap, defines its own proprietary intent schema. This fragmentation forces users into walled gardens and prevents composability across solvers, making a universal, user-optimized bundle a logistical impossibility.

Simulation is computationally intractable. A bundle aggregator must simulate thousands of potential cross-chain routes (e.g., Across, Stargate) and MEV strategies to guarantee execution. This creates an O(n²) state explosion that no decentralized network can solve in a single block.

Evidence: The failure of generalized intent markets proves the point. Protocols like Anoma remain theoretical, while practical implementations are confined to single applications like 1inch Fusion, which only handles its own liquidity.

WHY USER-OPTIMIZED BUNDLING IS A PIPE DREAM WITHOUT STANDARDS

The Standards Gap: A Protocol Comparison

Comparing the core interoperability primitives that must be standardized to enable seamless, user-centric transaction bundling across chains.

Critical StandardEthereum (ERC-4337 / EIPs)Solana (Versioned Txns)Cosmos (IBC)

Unified UserOp Format

Native Gas Abstraction

Paymaster Sponsorship

Priority Fee Market

Fee Grant Modules

Atomic Multi-Chain Settlement

Not natively supported

Not natively supported

ICS-20 / ICS-27

Standardized Intent Schema

EIP-7702 (Proposed)

None

None

Permissionless Bundler Network

~15 active networks

Jito, bloXroute

Relayer ecosystem

Avg. Cross-Chain Latency for Bundle

2-5 min (optimistic)

< 1 sec (same consensus)

~6-10 sec (finality)

Fee for 3-action Bundle

$10-50 (L1)

< $0.01

~$0.05-0.20 (IBC)

counter-argument
THE FRAGMENTATION TRAP

Steelman: "But My Wallet/DApp Already Bundles!"

Existing bundling is a fragmented, application-specific patch that fails to solve the systemic UX problem.

Application-specific bundling creates silos. A wallet like Rabby or a DApp like Uniswap bundles its own operations, but this logic is isolated. A user's cross-application flow across Uniswap, Aave, and Arbitrum still requires manual, sequential transactions.

This is a coordination failure. Each team builds a local optimum, but the global user journey remains broken. The ecosystem lacks a shared execution layer to coordinate actions across these silos, forcing users to act as their own inefficient integrator.

Evidence: The proliferation of intent-based solvers (CowSwap, UniswapX) and cross-chain messaging (LayerZero, Axelar) proves the demand for abstracted execution. These are point solutions for a systemic need that a universal bundling standard would address at the protocol level.

risk-analysis
THE FRAGMENTATION TRAP

The Bear Case: What Happens If We Fail

Without universal standards, user-optimized bundling remains a fragmented, insecure, and economically unviable fantasy.

01

The Liquidity Death Spiral

Fragmented standards prevent cross-chain MEV capture, leaving billions in potential user savings on the table.\n- Uncaptured Value: ~$1B+ in cross-domain MEV remains unextractable annually due to protocol silos.\n- Slippage Explosion: Users face >50% higher effective costs as liquidity pools remain isolated across chains like Ethereum, Arbitrum, and Solana.

$1B+
Lost Value
>50%
Cost Penalty
02

Security Theater Across Chains

Every new bundling protocol reinvents its own security model, creating a patchwork of attack surfaces.\n- Bridge Risk Proliferation: Users are forced to trust new, unaudited intent fulfillment layers, replicating the bridge hack risks seen with Wormhole and Nomad.\n- Oracle Centralization: Reliance on centralized sequencers or oracles for cross-chain state (e.g., LayerZero) creates single points of failure.

10+
New Attack Vectors
1
Critical Failure Point
03

The Developer's Dilemma

Integrating multiple, incompatible bundlers (like UniswapX, 1inch Fusion, Across) becomes a maintenance nightmare.\n- Exponential Integration Cost: Supporting N protocols requires N² custom integrations, killing developer velocity.\n- Walled Gardens: Apps become locked into specific bundler ecosystems, stifling competition and user choice.

N²
Integration Complexity
0
Portability
04

Economic Unsustainability

Without a shared settlement layer for bundled transactions, fee markets become irrational and subsidization fails.\n- Race to the Bottom: Bundlers engage in predatory pricing, leading to >90% subsidized transactions that collapse when VC funding dries up.\n- No Shared Revenue: Solvers, searchers, and validators cannot coordinate, preventing sustainable economic loops like those in Flashbots.

>90%
Artificially Subsidized
$0
Sustainable Revenue
05

User Experience Regression

The promise of a single, gasless interface shatters into a maze of wallet pop-ups and failed transactions.\n- Multi-Step Hell: A simple cross-chain swap requires 5+ manual steps across different UIs (e.g., Metamask, Phantom, Rabby).\n- Unpredictable Outcomes: Without a standard for execution guarantees, users face rampant transaction reverts and lost funds.

5+
Manual Steps
~30%
Revert Rate
06

The Zero-Sum Game

Protocols like CowSwap and UniswapX optimize for their own liquidity, not the network. The entire ecosystem loses.\n- Local vs. Global Optima: Each protocol's bundler captures value locally, destroying >20% of net user surplus that a coordinated network could achieve.\n- Adoption Ceiling: Mass users never arrive because the experience is fundamentally broken, relegating crypto to a niche of degens.

>20%
Surplus Destroyed
0
Mass Adoption
future-outlook
THE STANDARDIZATION IMPERATIVE

The Path Forward: From Pipe Dream to Protocol

User-optimized bundling is impossible without universal standards for intent expression and fulfillment.

Universal Intent Expression is the prerequisite. Without a standard like ERC-4337 for accounts, every bundler must parse unique, non-composable intent formats, making aggregation inefficient. This fragmentation mirrors the pre-ERC-20 token era.

Standardized Fulfillment Paths create a competitive market. A common interface for solvers, akin to Uniswap's router, allows specialized actors like PropellerHeads or Across solvers to compete on execution quality, not integration overhead.

The MEV-Boost model proves this. Its standardized block builder/payload API separated concerns and created a liquid market. User bundling needs an equivalent intent relay network to decouple expression from execution.

Evidence: The lack of a standard forces protocols like UniswapX and CowSwap to build isolated solver networks. This duplication of effort and liquidity is the primary bottleneck to scalable, user-centric bundling.

takeaways
WHY BUNDLING STANDARDS ARE NON-NEGOTIABLE

TL;DR for Busy Builders

User-optimized bundling promises a seamless cross-chain future, but today's fragmented infrastructure makes it a pipe dream. Here's what's broken and what needs to be built.

01

The Atomicity Illusion

Users want a single transaction, but today's bridges and DEX aggregators operate in silos. A swap from Arbitrum to Base requires 3+ separate, non-atomic steps, creating a >5% MEV leakage and a ~30% user drop-off rate per step. Without a shared settlement layer, true atomic composability is impossible.

>5%
MEV Leakage
~30%
Drop-off/Step
02

The Solver Fragmentation Problem

Every intent-based system (UniswapX, CowSwap, Across) runs its own solver network with proprietary logic. This creates zero liquidity sharing and $100M+ in stranded capital. A standard for intent expression and fulfillment would let solvers compete on a level playing field, driving down costs by ~40%.

$100M+
Stranded Capital
~40%
Potential Cost Save
03

The Verifier Nightmare

Each bridge (LayerZero, Axelar, Wormhole) has a unique security model and proof format. Aggregators must integrate and trust them all, creating a combinatorial explosion of attack surfaces. A universal attestation standard would cut integration time from 6 months to 6 weeks and slash audit overhead by 70%.

6 mo → 6 wk
Integration Time
-70%
Audit Overhead
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Why User-Optimized Bundling Is a Pipe Dream Without Standards | ChainScore Blog