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magic
@magicdhz
Joined September 2020
1.2K Following    2.3K Followers
I think private orderflow in the status quo is going to fragment price discovery and nuke competition for traders, just like how it did in TradFi We’re building a system that is designed to maintain privacy on txs without fragmenting price discovery BAMtardio
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I recently came across discussions about the negative impact of arbitragers/searchers using private orderflows on @solana. The main argument: it's not fair. Do you see the purple curve in the screenshot? That's the percentage of transactions related to arbitrage in a block. 3 months ago: 30% on average. Currently: 15% on average. Now, if we look at the revenue attributed to private orderflows: 3 months ago: 15-20% on average. Currently: 35-40% on average. The majority of this percentage is associated with spam/crank transactions that are of little value to the chain and take up a huge amount of space/CU in the blocks. Is this new arbitrage approach really bad for Solana or does it protect the chain from spam while making the market even more stable than ever for traders? 🤔
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