Integration with MEV-Share
Oval leverages Flashbots' MEV-share's order flow auction to run OEV auctions.
The MEV-share system can be understood from the following diagram that outlines the interplay between the main actors (taken & modified from the mev-share spec). There are 4 steps:
The MEV-Share node exposes this transaction to searchers via an event stream. Depending on the hints defined by the caller in (1) this might contain a subset of the transaction information.
A searcher that wants to backrun (1) sends their backrun bundle via
mev_sendBundle. Here, they define the exact transaction they want to backrun.MEV-share node then passes the original transaction (1) and the associated backrun (2) as a new bundle to block builders. This new bundle includes the refund separation, as defined by the caller in (1).
The Oval system sits in front of this system, simplifying the searcher integration. In the Oval system, the searcher submits a vanilla bundle to an Oval node with eth_sendBundle. This bundle would be identical to the bundle they would have submitted to a builder before Oval existed.
The Oval node will place the unlock transaction in front of that bundle. It will then forward this bundle to the MEV-Share system via mev_sendBundle and include refund preferences so the protocol will receive some of the proceeds. The searcher paying the highest bid will win, paying the protocol the maximum amount. This allows Oval to skip steps 1-3 and jump right to step 4 in the diagram above.
The Oval contracts determine which value is released to the downstream protocol, thereby protecting the MEV from being prematurely extracted by others and ensuring it remains within the MEV-Share redistribution flow.
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