With the successful launch of the mevETH LSD Protocol, the new Manifold MEV Auction system is under way to be implemented. The technical specifications will be released soon.
The important parts for FOLD are the following:
- Relay changes in which builders/searchers can query auction information utilizing a margin system denominated in FOLD
- Multiple winners per slot
- The new auction system only requires utilizing the relay: this means other LSD’s (e.g. FRAX or Mantle) can participate and earn a higher yield without having to migrate ETH or change their feeRecipent address
- Manifold MEV Auction fees for non-top of the block winners are distributed among participating LSDs and FOLD “lenders”.
- “Lenders” are FOLD deposits in the new Lending Protocol: FOLD is the margin collateral for builders/searchers to use to access auction information.
- Builders and Searchers do not need to purchase FOLD directly: Auction fees at settlement are used to pay their margin position. This means that people can lend FOLD via the system and in effect finance the builder/searcher positions.
- These builders/searchers are permissioned onto the margin engine for this purpose. Non whitelisted builders/searchers must be added.
- Additionally, the Operation Warranty Module (this is the “coverage” system) will allow additional fees to be earned from strictly mevETH fees for providing slashing protection. This will be a multi-asset staking in which ETH/FOLD LP and mevETH/FOLD will be required.
The implementation is forthcoming for the Coverage system will be released before the Margin system. The Coverage system will be based on the existing vault implementation from the mevETH contract codebase, ensuring a quick turnaround as this code base is audited and affords us the capabilities and functionality we require.