Hi
I’m lucas, a member of Renewable Energy Token, in my opinion, the best way to address the issue of MEV attacks on BNB Chain is through a structured approach that integrates 3 fundamental solutions
1- Encrypted Mempool – Preventing front-running and sandwich attacks by ensuring that pending transactions remain private until they are confirmed
2- Fair Ordering Protocol – Enforcing strict transaction sequencing based on the actual submission time rather than gas fees
3- AI-Powered MEV Detection – Identifying and penalizing wallets and validators engaging in MEV strategies through machine learning-based transaction analysis
By implementing these solutions together, BNB Chain can significantly enhance transaction fairness, improve network security, and minimize manipulative activities that distort the market Below, I will outline how each solution works and why it is effective
1- Encrypted Mempool to Prevent Front-Running and Sandwich Attacks
One of the main reasons MEV attacks are so prevalent is the public nature of the mempool, which allows bots and validators to analyze unconfirmed transactions and exploit them for profit The most effective way to mitigate this is to encrypt transaction details while they are in the mempool, only decrypting them once they are included in a block
How This Works:
When a transaction is submitted to the network, instead of being publicly visible in the mempool, it is encrypted using zk-SNARKs or TEEs (Trusted Execution Environments)
The validator can only see an encrypted version of the transaction, meaning they cannot determine its purpose or content
Once the transaction is included in a block, it is decrypted and executed in the exact order it was received
Why This Is Effective:
Eliminates front-running and sandwich attacks since attackers cannot view pending transactions in real-time
Ensures fair trading conditions for users executing large swaps or limit orders
Maintains network efficiency without altering fundamental blockchain operations
2- Fair Ordering Protocol to Prevent Transaction Reordering
Currently, validators can manipulate the order of transactions within a block by prioritizing those with higher gas fees This creates an unfair environment where MEV actors can submit their own transactions ahead of others, profiting from price movements
To prevent this, transactions should be ordered strictly by their timestamp of entry into the mempool, rather than by gas fees This can be implemented using a Commit-Reveal Scheme that works as follows:
How This Works:
Users submit a hashed version of their transaction to the network (commit phase)
The validator sequences transactions based on their arrival time without knowing their content
Once the transaction order is finalized, users reveal the full details of their transactions (reveal phase)
Why This Is Effective:
Eliminates reordering-based MEV (eg, back-running and time bandit attacks)
Prevents validators from selectively prioritizing transactions based on their profit potential
Encourages fairer gas pricing, as users no longer need to overpay to avoid MEV exploits
3- AI-Powered MEV Detection and Dynamic Penalties
Even with encrypted transactions and fair sequencing, sophisticated MEV bots can still exploit patterns in trading activity without direct mempool access To combat this, BNB Chain should deploy an AI-based monitoring system that automatically detects and penalizes addresses engaging in repeated MEV behavior
How This Works:
Machine learning models analyze transaction history to detect patterns associated with MEV activity
When a transaction is flagged as potentially exploitative, the system applies one of the following measures
Dynamic Gas Pricing – Increasing the required gas fee for repeated MEV transactions
Execution Delay – Introducing a slight randomized delay for flagged transactions
Reputation-Based Restrictions – Penalizing wallets or validators that continuously engage in MEV strategies
Why This Is Effective:
Proactively identifies MEV bots rather than just mitigating their effects
Increases the cost of MEV operations, making them less profitable
Discourages validators from engaging in malicious behavior by imposing financial disincentives
By integrating an AI-based detection system, BNB Chain can continuously adapt to new MEV strategies and prevent emerging forms of transaction manipulation
