What is Open-MEV, and How it will Benefit You?
A high-level overview of what Toby Network is bringing to Solana, and the benefits it will bring for you.
The OpenMEV, as the name states, is designed as an open and permissionless MEV capturing infrastructure that will bring a new standard into Solana's MEV ecosystem, and building the next generation of foundational yield.
Toby offers a mempool allowing all on-chain activities to take place without discrimination to start, with the system's authorities solely governed by Toby's community and ecosystem-stakeholders.
Understanding OpenMEV
Think of Toby Network as a public marketplace for MEV opportunities. Imagine it as a bustling auction house where:
Buyers (Searchers) look for profitable deals
Vendors (Block Chef) runs a KYC on the buyer and checks the proposed deal, then carry out auction for non-malicious MEV opportunities, and finally close the deal via a package (Block)
Bankers (Validators) stores the vendor's transfers (Block) into their vault (Solana Blockchain).
This open ecosystem encourages competition, brings forth transparency, fosters permissionless-partnerships, and significantly increases network efficiency. It’s like introducing a strong competition into a monopoly, benefiting everyone involved.
Toby Network's Infrastructure
To support this model, Toby Network has developed a robust infrastructure comprising several key components:
Toby-Solana Client: A lightweight client sidecar for our validators to receive and process Open-MEV block proposals. It is fully compatible with alternative validator clients, allowing existing operators to adopt Toby without changing their core setup while improving long-term sustainability. The Toby-Solana Client prioritizes OpenMEV blocks proposed by Block Chef.
Block Chef: A two-layer MEV execution and block-building system.
Head Chef: The gatekeeper control layer. It inspects, classifies, and tags every transaction and bundle entering Block Chef. Headchef enforces policy by filtering out under-tipped transactions, rejecting bundles that fail minimum incentive thresholds, and excluding patterns flagged as malicious or non-compliant. Governed by Toby stakeholders, it determines which MEV activity is permitted, ensuring only consensus-approved transactions are forwarded into the public mempool.
Sous Chef: The mempool execution layer. It maintains a permissioned, public mempool that receives approved transactions and bundles, conducts auctions for block inclusion, and assembles the optimal OpenMEV partial block. The resulting partial block proposal is then submitted to the slot leader for inclusion.
Validator Optimizer: A program that autonomously delegates the staked assets on Toby to the high performing and reputable validators, ensuring the best yield for our stakers across all rewards channels.
OpenMEV Council: Toby operates under a decentralized governance model. Token-based voting governs protocol rules, permissions, and economic parameters, enabling stakeholders with aligned incentives to collectively steer system behaviour. This governance layer allows markets to form around policy, access, and MEV flow, without centralized control.
Resolution Suite: A suite of smart contracts underpins the platform's core functionalities, governing MEV auctions, reward distribution, and more.
OtterFlow: A real-time market data stream exposed to MEV searchers for identifying and constructing profitable opportunities. All MEV bundles submitted to Block Chef must be derived exclusively from OtterFlow data, ensuring a shared, transparent data substrate across the OpenMEV ecosystem.
Safety Priorities: Robust audits, security measures, and compliance frameworks will be in place to protect system integrity and ensure adherence to relevant regulations.
How It Works
Participants in Toby Network's ecosystem include:
Stakers: Users who staked their assets into Toby's validator stakepool.
MEV Searchers: These entities identify profitable trading opportunities within blockchains, builds bundles to capture value.
Relays: These entities facilitate the communication between searchers and Block Chef.
Block Chef: They construct optimal transaction bundles into partial blocks to maximize MEV capture, earning rewards for their participation.
Validators: Runs Toby-Solana client, our OpenMEV block receivers that packs our OpenMEV blocks into the chain.
Toby Network's infrastructure enables these participants to interact seamlessly, creating a competitive and efficient MEV ecosystem.
Benefits of OpenMEV
Increased Competition: A permissionless model encourages innovation and competition, leading to higher MEV rewards for our stakers, and better sustainability for validators, reducing their reliance on SFDP grants.
Fairer Distribution: By democratizing MEV, Toby's OpenMEV ensures a more welcoming environment for ecosystem participants, encouraging more on-chain activities and an equitable distribution of rewards among participants.
Enhanced Transparency: The open nature of the platform promotes transparency and accountability, also allowing for a greater degree of integration with up-stream protocols e.g. DeFi apps, aggregators, money markets, and many others, boosting Toby's revenue.
Stronger Network Security: A diverse range of validators and operators can contribute to the overall security of the blockchain network.
The Future of MEV is Open.
Building on MEV is hard, and it's never easy to pioneer a new way forward, despite that, Toby strives to provide the best possible product to the most number of participants, openly, and build a more transparent Solana ecosystem that is more communal and supportive, like a big otter family.
We truly believe in the ethos of what a blockchain should exist for, to be open, decentralized, and permissionless, and what we're building should empower the participants in the most impactful way. We would love to unlock the full potential of MEV and contribute to the growth of the broader blockchain industry.
Thanks for reading! We hope you enjoyed the article and found it helpful.
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