Call for proposal: Addressing Malicious MEV Attacks on BNB Chain

BEP-547: Encrypted Mempool for Binance Smart Chain

Introduce a threshold encrypted mempool to the Binance Smart Chain (BSC) to eliminate malicious MEV like front-running and strengthen real-time censorship resistance.

How it Works:

  • Users submit encrypted transactions.
  • Validators commit to a transaction order before decryption.
  • A threshold decryption is then performed by either:
    • Binance Chain validators, or
    • A dedicated Keyper set governed by Shutter DAO 0x36.
  • Decryption happens only after ordering, preventing anyone from exploiting transaction content.

Technology:

  • Built on Shutter’s proven cryptographic architecture (live on Gnosis Chain).
  • Uses threshold encryption, not alternatives like TEEs or FHE, due to its strong decentralization and efficiency.
  • Compatible with Erigon v3, enabling opt-in validator support with no disruption to regular transactions.

Motivation:

  • Backed by the BNB Good Will Alliance, the goal is to restore fairness in transaction ordering and protect users from malicious MEV (like front-running and sandwich attacks).
  • Prepares BSC for future compliance by reducing MEV-related regulatory risk.

Benefits:

  • Fairness: Prevents malicious reordering and private exploitation.
  • Censorship Resistance: Keeps transaction contents hidden until committed.
  • Validator Choice: Fully opt-in, supports legacy and encrypted txs in parallel.
  • Future-Proofing: Aligns with Ethereum’s PBS direction and cross-chain innovations.

Performance:

  • Minimal computational overhead.
  • Slight increase in latency for encrypted txs, but scales with validator participation.
  • Network throughput remains unaffected.

Roadmap:

  1. Testnet Phases:
  • Validator opt-in, stress testing.
  1. Mainnet Pilot:
  • Optional feature rollout.
  1. Full Rollout:
  • Based on community feedback and stability.

Partnership: Jointly developed by brainbot, Erigon, and NodeReal, with each bringing core infrastructure, client development, and deployment expertise.