MEV Reduction and Fair Sequencing Debut on Unichain

Unichain became the first layer two (L2) blockchain to deploy trusted execution environment (TEE)-based block building, aiming to enhance transaction transparency and fairness while mitigating malicious MEV practices.

First-of-Its-Kind TEE Tech Reshapes L2 Transaction Ordering

The upgrade, developed by Uniswap Labs and Flashbots, leverages Rollup-Boost to sequence transactions within a secure TEE, enforcing priority-based ordering via fee markets. This reduces reliance on centralized sequencers and establishes verifiable rules for block construction, with execution attestations slated for public API access.

According to the blog post, fair transaction prioritization now ensures users pay fees reflective of network demand rather than opaque intermediaries. Public attestation tools, set to launch soon, will let validators audit sequencing compliance, bolstering trust in decentralized infrastructure.

MEV risks are curtailed through an encrypted mempool and predictable block-building. Developers can implement MEV taxes, capturing value for protocols, while pre-simulation tools reject failing transactions, sparing users gas fees. Early data suggests this cuts wasted blockspace and improves pricing accuracy.

TEE-based systems enable future features like Flashblocks, which will subdivide blocks into 200ms intervals to reduce latency for traders and liquidity providers. Sub-blocks remain verifiable, balancing speed with transparency—a first for blockchain networks.

Revert protection, now optional for developers, shields users from gas costs on failed transactions. Combined with TEE-enforced rules, these upgrades create a framework for encrypted mempools, scheduled transactions, and co-processing innovations outlined in Unichain’s roadmap.

As DeFi’s largest app by volume, Uniswap’s involvement showcases the push for scalable, equitable infrastructure. The partnership with Flashbots reflects lessons from Ethereum’s MEV challenges, aiming to redefine L2 reliability amid growing demand for decentralized finance solutions.