Oval Update Lifecycle

Walkthrough of a sample Oval auction & update lifecycle.

It is illustrative to walkthrough a sample transaction lifecycle that showcases all actors operating together and data moving through the system.

Consider a Chainlink update that catalyzes a liquidation within Aave. From Chainlink update to onchain liquidation the flow would be:

  1. Searchers wanting to use the new Chainlink value to execute a liquidation submit bids to the Oval node RPC endpoint (see Oval Node). Before Oval, they would submit directly to the builders, and from the searcher perspective, this is the only thing that has changed. These bundles contain the standard data: [chainlinkUpdateTx, ...searcherBundle] with the eth_sendBundle RPC method, including a builder payment (transfer to block.coinbase or an included priority fee).

  2. After receiving all bundles from MEV-Share, the builder runs their standard block building process: packing the highest-paying (typically non-reverting) bundles and transactions to include in their bundle. Because competing bundles are typically mutually exclusive, the lower bids will be dropped, with only the highest bid being included in the final block.

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