This is a work in progress. If you have questions or suggestions about the fair market principles, please open an issue in this repository.
In order to receive bundles from MEV-Share matchmakers, builders agree to the following principles. These principles are intended to ensure that builders act in a market-neutral way and don't use their privileged position to manipulate the auction to the detriment of participants. This includes using their privileged position and access to orderflow to provide informational advantages to internal or external searcher operations.
- Not sell or share bundles with other parties. This includes other builders as well as external or internal searchers. Bundles are shared with the builder and the builder alone.
- Not break the atomicity of bundles. This means that either all transactions in a bundle are included in the intended order with no other transactions inserted between them, or no transactions from that bundle are included. Where two bundles' MEV extraction is non-conflicting, it is acceptable to discard transactions from a bundle to allow for merging with another bundle if the user has opted in to this feature.
- Respect the privacy of bundles, including failed-trade privacy. This means not sharing any sensitive data about bundles outside of the builder (eg. with other builders, internal or external searchers, or the public), except with the party who submitted the input to MEV-Share. Examples of sensitive data include identifying data about orderflow, failed bundles that did not land on chain, or timing data that is only visible to builders.
- Correctly implement validity conditions. This means transferring the correct payment to the correct addresses for bundles that have refunds.
- Provide optimal execution to users. Builders should not take actions that negatively impact the execution of the bundle (eg. effective price or refund amount). Specifically if a bundle for user X is included with prefix P, there should be no other bundle for tx X that more profitable with prefix P.
- Be transparent about how orderflow is processed. Builders should publicly document the guarantees of their bundle merging algorithm. This includes the requirements laid out in these principles as well as any other major features of the auction (eg. discarding transactions that users have opted to allow the builder to exclude from their bundle, selling access to the bottom of the block, etc.) or guidance the builder wishes to provide on how conflicts are resolved. Builders also agree to share non-sensitive data for public analysis, monitoring, and tracking purposes.
Builders who register in builder-registrations are committed to uphold these principles.