PEPC-REP

1. challenges

• Proposer's flexibility for commitment is limited and preferences such as what style of Bid to take cannot be expressed.
• The Bid may disadvantage the Swap TX that is on top because the searcher's bundle, which should be on top, is not on top.

Solution

• Design a more flexible and diverse communication market by building a PEPC on SUAVE where proposers can exercise preferences in block construction.
• McAMM: Auction the rights to the first transaction per block through an auction of smart contracts. By sending a Bundle to Uni V4 via SUAVE, the searcher can make sure that the tx of the DEX-CEX arb is always the first one in the block, and the searcher's tx in the corresponding block can restore the DEX price to some extent, and the subsequent Swapper's Swap can be executed at a reasonable price.

1. use case

• Direct fill on SUAVE: Implement UniswapX direct fill in a more trustless way by receiving direct fill signatures in SUAVE and implementing Dutch auction in MEVM.
  • Improved transparency: no transparency since the Dutch auction is done off-chain; confidentiality of Intents' signature data on Suave allows for trastless cancellation.
  • Inclusion of secure Direct Fill in the block: Direct Fill does not pass a bid; Dex-Cex arb passes a bid. This means that the builder can choose not to accept Direct Fill, so building an environment that allows Direct Fill to be bid on SUAVE will allow inclusion in the block.

1. future / big picture

• As more and more intents base apps, including Uniswap V4 and X, are likely to appear in the future, and revenue will no longer be passed on to traditional MEV-boost supply chain actors, the PEPC-REP will become the execution environment for these intents base applications, allowing for more order flow and potentially gain an advantage over other builders.
• Even if it cannot beat other sophisticated builders in terms of latency, it will provide PEPC-REP as a more trastressed execution environment at a time when fraud is likely to occur.

Translated with www.DeepL.com/Translator (free version)

Searcher: Searcher sends bundles to PEPC Contract. The amount of the transaction is also sent at the same time. Proposer: A proposer can represent the receipt of a specific ERC20 token, etc. as a Preference. Reordering of Bundles: The order of the bundles is changed according to the order of transaction volume. Block Build: Build blocks in transaction volume order.