
Aori, Game Theory, and DeFi
You may associate Aori with MEV, DeFi market making, maybe even with my ranting about off-chain orderbooks. But I wanted to set the record straight and detail what Aori is all about and my belief about what DeFi will look like over the next few years. This is a writeup about:What Aori is as a premiseHow to decentralize the Aori protocol without a blockchainOur progress to dateWhat we can build together with this new paradigm of settlement infrastructure.Aori is a Settlement ContractAoriV2.sol...

Blockchains are BAD (for execution)!
The only way to be based is to be sequenced… wait I think I got that backwards…Propagation without ConsensusI touched in last mirror on a concept known as “Competitive Based Sequencing.” Let’s expand on that here and talk more about how we can leverage blockchains as dedicated data availability and transaction sequencers. This is all in a series on Aori, Based Sequencing, and how we can build apps in the future that without using auctions minimize MEV leakage and dead weight loss. When a base...

Arbitrum I love you, but you’re bringing me down.
Recently Arbitrum’s DAO passed a vote to determine a feature of the new and upcoming sequencing replacement, named: Timeboost™️. It’s my job by the end of this article to plead for the Arbitrum DAO and team to reconsider their implementation of Timeboost™️, but I likely know this is likely a fool’s errand. There are a few major issues I see, both with the greedy and shortsighted rationale for pushing it through quietly and quickly, as well as the likely catastrophic effects it will have on us...
www.aori.io

Aori, Game Theory, and DeFi
You may associate Aori with MEV, DeFi market making, maybe even with my ranting about off-chain orderbooks. But I wanted to set the record straight and detail what Aori is all about and my belief about what DeFi will look like over the next few years. This is a writeup about:What Aori is as a premiseHow to decentralize the Aori protocol without a blockchainOur progress to dateWhat we can build together with this new paradigm of settlement infrastructure.Aori is a Settlement ContractAoriV2.sol...

Blockchains are BAD (for execution)!
The only way to be based is to be sequenced… wait I think I got that backwards…Propagation without ConsensusI touched in last mirror on a concept known as “Competitive Based Sequencing.” Let’s expand on that here and talk more about how we can leverage blockchains as dedicated data availability and transaction sequencers. This is all in a series on Aori, Based Sequencing, and how we can build apps in the future that without using auctions minimize MEV leakage and dead weight loss. When a base...

Arbitrum I love you, but you’re bringing me down.
Recently Arbitrum’s DAO passed a vote to determine a feature of the new and upcoming sequencing replacement, named: Timeboost™️. It’s my job by the end of this article to plead for the Arbitrum DAO and team to reconsider their implementation of Timeboost™️, but I likely know this is likely a fool’s errand. There are a few major issues I see, both with the greedy and shortsighted rationale for pushing it through quietly and quickly, as well as the likely catastrophic effects it will have on us...
www.aori.io

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Is there anything more cucked than letting someone ELSE sequence YOUR transactions?
There was a thread recently I enjoyed reading because it validated my opinions (that should be how you read everything, of course):



So:
Rollups should decentralize
Rollups are [redacted in the brain] and or/lying, don’t know how (I wont force anyone to read Toghrul, that might be considered a war crime in some states)
Building a centralized Rollup and trying to “Decentralize” is impossible, whether or not you ACTUALLY intended to.
These things are ALL true.
So that’s it right? Well…. The reason this thread validated my opinions is because the solution to this all is not to whine and cry like a little bitch to the Arbitrum or Optimism foundations about building a fork of Tendermint to slap onto your L2, it’s the following very simple idea:
Move the sequencing somewhere else.
These L2’s are valuable because they print money off the gas you pay to use them being more expensive than their cost of DA on Ethereum or some other actually decentralized network. So their storage is already decentralized, what if we decentralized their transaction ordering…
AGAINST THEIR WILL!
That means you remove the leverage of the blockchain, whether they like it or not (which is something that really makes me excited). If that can be done, then you effectively have decentralized the L2 against the desires of the L2. So that begs the question, how do you separate the sequencing from the blockchain? In my opinion that can be done in a few ways, or put more simply in two ways but with many possible design choices.
The primary method of doing this is through either through application based rules, or private mempools. These are slightly different things, but let’s go through both.
Some of my frens call this “ASS” or application specific sequencing… while I like this terminology I think it’s a bit crass (pun intended). I think my definition of Rules Based Sequencing is a bit more broad though. Rules Based Sequencing is where an app determines a set of rules for the sequencing of each transaction with respect to the destination chain.
For example, if an app wanted to let the user directly sequence their own transaction, they could return it to the user for execution via a UI wallet prompt. Another rules based system could be one similar to CoWSwap, where the transactions are sequenced by the application itself, they bundle them all up and settle directly to L1. A third and important example as well is what I referred to in a previous article, Competitive Based Sequencing. This is one wherein an app can broadcast the transaction to any subscriber, then compensate that subscriber for being the first to successfully finalize that transaction on the respective chain.
I think shared sequencers, thinks like “super builders,” and others in this space. If you’re taking a bunch of applications transactions, then applying some kind of ordering rules, I consider you a block builder. Frankly, there is no fucking difference between a block builder and a shared sequencer, besides the fact that one wants to decentralize itself over time (the other realizes making money is nice).
The goal here is simple. Force against their wills, and in a violent and brutal manner, L2’s to decentralize. It simply is not possible to assume that as good actors they will eventually decentralize themselves, and frankly… I don’t blame them! If you’re making that much running a centralized sequencer, keep that bad boy going.
I want to make one point EXPLICITLY clear. I am not a decentralization or permissionless-ness maxi. In fact, I despise this ethos, and find it anti-human. Counterparties, other people, and human nature cannot be abstracted away through cryptographic “rules.” This is naïve and frankly insulting. That is why I believe in the right to self sequence. My goal with the suggestions made in this article is actually to keep the humans in this system accountable.
If the foundations mentioned here and all over the Rollup ecosystem honestly came out and said “We dont give a shit about decentralizing these sequencers, we’re here to make money.” I wouldnt write this article. I’d shut up and write about MEV or some other shit like pipe tobacco. But that isn’t what they’re saying. They’re advertising that they want to decentralize their sequencers, so it’s my job as a complaining crypto citizen to put their feet to the flame.
Is there anything more cucked than letting someone ELSE sequence YOUR transactions?
There was a thread recently I enjoyed reading because it validated my opinions (that should be how you read everything, of course):



So:
Rollups should decentralize
Rollups are [redacted in the brain] and or/lying, don’t know how (I wont force anyone to read Toghrul, that might be considered a war crime in some states)
Building a centralized Rollup and trying to “Decentralize” is impossible, whether or not you ACTUALLY intended to.
These things are ALL true.
So that’s it right? Well…. The reason this thread validated my opinions is because the solution to this all is not to whine and cry like a little bitch to the Arbitrum or Optimism foundations about building a fork of Tendermint to slap onto your L2, it’s the following very simple idea:
Move the sequencing somewhere else.
These L2’s are valuable because they print money off the gas you pay to use them being more expensive than their cost of DA on Ethereum or some other actually decentralized network. So their storage is already decentralized, what if we decentralized their transaction ordering…
AGAINST THEIR WILL!
That means you remove the leverage of the blockchain, whether they like it or not (which is something that really makes me excited). If that can be done, then you effectively have decentralized the L2 against the desires of the L2. So that begs the question, how do you separate the sequencing from the blockchain? In my opinion that can be done in a few ways, or put more simply in two ways but with many possible design choices.
The primary method of doing this is through either through application based rules, or private mempools. These are slightly different things, but let’s go through both.
Some of my frens call this “ASS” or application specific sequencing… while I like this terminology I think it’s a bit crass (pun intended). I think my definition of Rules Based Sequencing is a bit more broad though. Rules Based Sequencing is where an app determines a set of rules for the sequencing of each transaction with respect to the destination chain.
For example, if an app wanted to let the user directly sequence their own transaction, they could return it to the user for execution via a UI wallet prompt. Another rules based system could be one similar to CoWSwap, where the transactions are sequenced by the application itself, they bundle them all up and settle directly to L1. A third and important example as well is what I referred to in a previous article, Competitive Based Sequencing. This is one wherein an app can broadcast the transaction to any subscriber, then compensate that subscriber for being the first to successfully finalize that transaction on the respective chain.
I think shared sequencers, thinks like “super builders,” and others in this space. If you’re taking a bunch of applications transactions, then applying some kind of ordering rules, I consider you a block builder. Frankly, there is no fucking difference between a block builder and a shared sequencer, besides the fact that one wants to decentralize itself over time (the other realizes making money is nice).
The goal here is simple. Force against their wills, and in a violent and brutal manner, L2’s to decentralize. It simply is not possible to assume that as good actors they will eventually decentralize themselves, and frankly… I don’t blame them! If you’re making that much running a centralized sequencer, keep that bad boy going.
I want to make one point EXPLICITLY clear. I am not a decentralization or permissionless-ness maxi. In fact, I despise this ethos, and find it anti-human. Counterparties, other people, and human nature cannot be abstracted away through cryptographic “rules.” This is naïve and frankly insulting. That is why I believe in the right to self sequence. My goal with the suggestions made in this article is actually to keep the humans in this system accountable.
If the foundations mentioned here and all over the Rollup ecosystem honestly came out and said “We dont give a shit about decentralizing these sequencers, we’re here to make money.” I wouldnt write this article. I’d shut up and write about MEV or some other shit like pipe tobacco. But that isn’t what they’re saying. They’re advertising that they want to decentralize their sequencers, so it’s my job as a complaining crypto citizen to put their feet to the flame.
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