The Current Status and Development of MEV on Sui

MEV (Maximum Extractable Value) has become an important topic in the blockchain industry, involving transaction ordering and arbitrage opportunities. To ensure transparency, protect transactions, maintain network health, and reward participants, Sui has been implementing improvement proposals and mechanisms to guide the development of MEV.

Design Principles and Considerations

Each transaction on Sui may bring potential profit opportunities. The MEV ecosystem of Sui is formed through the following mechanisms:

• The mechanism for submitting MEV transactions
• Mechanism for releasing MEV opportunities
• Mechanism for distributing MEV income
• Mechanism for protecting user transactions

The overall priorities are as follows:

• User transaction protection takes precedence over withdrawal value amount
• Network transparency takes precedence over offline transactions with validator nodes or relays.
• Promote competition through priority gas auctions to curb spam behavior.
• Encourage the allocation of rewards to ecosystem-aligned participants

Transaction Submission

The client competes for the execution order of transactions through prioritized gas auctions (PGA). PGA is an effective resource allocation method that prevents spam behavior and redistributes gas fees.

The key driver of PGA is quantitative execution:

• Transactions sorted by consensus are processed in the block.
• Traders compete for priority through gas auctions.
• A higher consensus submission rate narrows the PGA window
• For non-congested objects, a submission speed advantage of 70 milliseconds may determine whether a transaction is completed.
• Congestion objects may delay transaction execution, further amplifying the importance of PGA.

There are two mechanisms to direct transactions to specific Sui submissions:

1. Submit a batch of transactions through soft bundling (SIP-19)
2. Amplify priority transactions through consensus (SIP-45)

Choose the Right Trading Gas Price

The client should consider the following factors to determine the gas price:

1. Priority gas auction
2. Consensus Submission Amplification
3. Avoid congestion delays and cancellations

The gas price for executing and canceling transactions tracked by full nodes, especially for transactions involving congested objects. Using this information, clients can determine the required gas price to avoid transaction delays with a high probability.

Release Trading Information

Every transaction on Sui introduces potential profit opportunities. The transaction lifecycle goes through multiple stages from client submission to third-party observation of its effects.

To achieve low-latency user transaction access, a system for directly streaming consensus blocks is being designed. Full nodes will be able to directly subscribe to consensus blocks, speculatively notifying of transactions with a high probability of being committed, significantly reducing transaction propagation delay.

Protecting User Transactions

Users' transactions need to be protected from front-running, sandwich attacks, and involuntary submission delays.

Sui transaction submission requires external member drive, typically executed by full nodes. This provides a natural front protection, assuming trust in the full nodes responsible for transaction submission.

The ongoing Mysticeti Fast Path project will change the way transactions are submitted, improving system efficiency, but it also presents front-running opportunities for validating nodes. This risk currently exists only theoretically, as there is no evidence to suggest that front-running attacks have occurred on Sui.

The Evolution of MEV on Sui

The MEV ecosystem of Sui is still in formation, with new mechanisms set to be launched later this year. Currently, priority gas auctions and consensus amplification define the existing system, while upcoming innovations such as time-locked encryption and Mysticeti fast paths will reshape transaction execution and security. As these mechanisms go live, the MEV on Sui will continue to evolve, creating a more dynamic and transparent ecosystem.