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Quantification of MEV sharing design (OFAs)

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Mar 24, 2023
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Danning Sui

MEV infra space is moving towards the designs with user redistribution in mind, yet we don't know how much amount exactly can be reshared as kickback for the order flow originator, from today's MEV revenue split. We will go thru some stats to understand 1) how the values are distributed across roles today, 2) from where in the OFA flow user kickback can be extracted, and 3) how much amount it will be. We will use 2 methodologies to quantify the potential upperbound, to help inform the opportunity sizing that exist for order flow owners.