LayerZero research team unveils Otter, an MEV-resilient AMM
LayerZero's research team introduced Otter (Optimal Truthful Trading with Excess Redistribution), an AMM design intended to eliminate MEV extraction such as front-running and sandwiching. Where production AMMs execute trades sequentially, Otter replaces sequential execution with batch clearing, removing the ordering window that lets builders front-run transactions.
The proposed design also targets concentrated, self-reinforcing block-builder dominance and claims a Sybil-proofness guarantee, showing a builder cannot profit by injecting fabricated bids — even on both sides of the market. The full announcement and accompanying paper were published by the research team.
Sources
- Read the full announcement, alongside the full paper: https://t.co/fw96pzxqrN Replying to their earlier post: MEV extraction today is concentrated: a small number of block builders produce the overwhelming majority of blocks, and that concentration is self-reinforcing - dominant builders get better order flow…x.com ↗
- MEV extraction today is concentrated: a small number of block builders produce the overwhelming majority of blocks, and that concentration is self-reinforcing - dominant builders get better order flow, which makes them more dominant. Otter is a different approach: redesign the Replying to their earlier post: Otter also removes the incentive to inject fabricated transactions. A builder might try to submit extra bids through pseudonymous accounts—even on both sides of the market—to manipulate the batch outc…x.com ↗
- Otter also removes the incentive to inject fabricated transactions. A builder might try to submit extra bids through pseudonymous accounts—even on both sides of the market—to manipulate the batch outcome. Otter’s Sybil-proofness guarantee shows that this cannot increase the Replying to their earlier post: Every AMM in production today executes trades sequentially, which is what gives a builder the ability to front-run transactions and sandwich traders. OTTER, or Optimal Truthful Trading with Excess Re…x.com ↗
- Every AMM in production today executes trades sequentially, which is what gives a builder the ability to front-run transactions and sandwich traders. OTTER, or Optimal Truthful Trading with Excess Redistribution, replaces sequential execution with batch clearing through a Replying to their earlier post: New from the LayerZero research team: Otter, the MEV-resilient AMM. Front running is a thing of the past. https://t.co/fw96pzxqrNx.com ↗
- New from the LayerZero research team: Otter, the MEV-resilient AMM. Front running is a thing of the past. https://t.co/fw96pzxqrNx.com ↗
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