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Flashbots

1 min read
Pronunciation
[flash-bots]
Analogy
Like a VIP reservation system at a restaurant that lets you submit your order in advance directly to the chef, bypassing the waitstaff.
Definition
A research and development organization and protocol for transparent, permissionless MEV extraction, offering a private relay (MEV‑Geth) that allows users to submit bundles directly to miners. Flashbots aim to democratize MEV and reduce negative externalities of on‑chain front‑running.
Key Points Intro
Flashbots provide infrastructure for submitting and auctioning transaction bundles to miners/validators.
Key Points

MEV‑Geth relay: Private RPC endpoint to submit bundles.

Bundle auction: Miners choose bundles that maximize their revenue.

Transparency: Public reports on MEV extracted and distribution.

Fairness tools: Strategies to mitigate harmful frontrunning.

Example
A DeFi aggregator uses Flashbots to submit a bundle that repays a flash loan, performs an arbitrage, and returns leftover funds, ensuring atomic MEV capture without mempool exposure.
Technical Deep Dive
Users sign a sequence of transactions (bundle) and submit to the Flashbots relay via JSON‑RPC `eth_sendBundle`. Relay simulates bundle execution against latest block state, then auctions it to participating miners. Miners incorporate bundles in private blocks, share block templates via MEV‑Share, and publish results after inclusion.
Security Warning
Relying on a single relay introduces centralization risk; consider diversifying MEV submission endpoints.
Caveat
Flashbots benefits sophisticated traders; smaller users may still face front‑running in public mempools.
Related Terms
Private Mempool
Validator

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