Among the many use cases of Ethereum, Decentralized Finance (DeFi) currently appears to be the most popular and successful. However, DeFi on Ethereum is also synonymous with serial hacks and disproportionate transaction fees. The Eden Network Project has just closed a multi-million fundraising round with the support of Multicoin Capital to address one of the causes of this second problem.
The MEV vulnerability responsible for the rise in fees on Ethereum
For the past few months, a new concept has been causing controversy within the Ethereum ecosystem: the miner extractable value(MEV). MEV refers to a value that is sufficient to encourage miners on the Ethereum network to give higher priority to certain transactions. Basically, the MEV is a vulnerability of the Ethereum network. Its exploitation is enabled by the transparency of transactions and the fact that miners can organize the transactions in a block as they see fit.
In the general case, transactions are organized in chronological order. But, it is possible to increase the gas charges associated with transactions to “front-run” other transactions. This practice is called transaction front-running and is becoming increasingly popular within the DeFi ecosystem.
A miner, behaving according to incentives, will mechanically process the transactions that yield the most profit. In our case, the transactions with the highest fees. It is this practice that is partly responsible for the resurgence of high fees on Uniswap. Indeed, several Ether mining pools have standardized this practice.
As a result of these developments on the Ethereum network, Eden Network has made SRM the core of its project.
Eden Network, the new champion of miners
Eden Network, formerly known as Archer DAO, is a scheduling protocol in which users can execute transactions without fear of being pre-empted(frontrun). Nevertheless, the project also helps block producers remain profitable.
<img width=”1920″ height=”1080″ src=”//www.w3.org/2000/svg’%20viewBox=’0%200%201920%201080’%3E%3C/svg%3E” alt=’List of participants in the Eden Network fundraise including Multicoin Capital, Jump Capital, Alameda Research, Wintermute, GSR, Defiance Capital, and Andre Cronj of yearn finance” /><img width=”1920″ height=”1080″ src=”https://yellowrocketagency.com/wp-content/uploads/2021/09/1_XguDfmkn-MIsr4LJK6Ue8A-1920×1080..png” alt=’List of participants in the Eden Network fundraise including Multicoin Capital, Jump Capital, Alameda Research, Wintermute, GSR, Defiance Capital and Andre Cronj from yearn finance” />List ofparticipants in the fundraising of Eden Network
Eden wants to improve the profitability of miners while ensuring the security of the network. But also to protect users against the increase of the expenses by reducing the negative effects of the MEV on Ethereum. To do this, the project intends to tokenize the MEV in the form of network tokens the EDEN.
, Defiance Capital and Jump Capital.
“The MEV landscape is only growing by the day due to the explosion of DeFi. Eden Network offers an open and democratic approach to aligning incentives while protecting consensus. “
Saurabh Sharma partner at Jump Capital
Eden was officially launched at the same time
. The company claims to account for more than half of the network’s hashing power. This claim means that the Ethereum network produces more Eden blocks than traditional blocks.
In order to take advantage of the Eden network, users must stack EDENs. Once the EDENs are locked, the transactions of these users will be automatically recorded in priority. This innovation is necessary for both individuals and institutions. Indeed, the use of DeFi protocols has become too expensive for most small wallets.