DeFi Research Monthly
Research on how DeFi works and breaks: MEV, AMM design, lending risk, oracle security and mechanism design — papers and serious forum posts with real analysis.
Latest issue
Oct 6 · 3 of 7 shownThis issue holds three items that passed the strict filter, two on MEV and one on lending and liquidations. The most worth reading is the Base Flashblocks study, which estimates a causal drop in searcher priority fees from an auction change. The other two are a traitor-tracing construction for encrypted mempools and a formally proven protocol composition for leveraged event markets.
Proposes a candidate traceable threshold encryption construction for committee-based encrypted mempools, adapting tracing techniques from BPR25 to Paillier encryption. It aims to identify committee members who leak or sell partial decryption capability without falsely accusing honest ones. The authors call it a first step, not deployment-ready, with setup and the tracing authority still open.
Uses Base's July 2025 switch from one 2 s auction to ten 200 ms Flashblocks auctions as a difference-in-differences setup on 3,032 searchers and 8,053 matched controls. Effective priority fees fell 0.187 gwei (59% of the pre-period mean), and the share of fee value paid in the first tenth of block gas fell from 0.98 to 0.28. The revert-rate response is not causally identified. A model projects diminishing returns from shortening the window below 200 ms.
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