More Than 50% of Ethereum Hashing Power is Participating in Protecting Users from Malicious MEV
This is done through Ethereum priority transaction protocol Eden Network which raised $17.4 million from big names including Multicoin Capital, Alameda, Jump Capital, YFI’s Andre Cronje, and others.
Ethereum priority transaction protocol Eden Network has raised $17.4 million in a seed funding round led by Multicoin Capital with participants including Alameda Research, Jump Capital, DeFiance Capital, Yearn.Finance creator Andre Cronje, Genesis Capital executive Joshua Lim, GSR, and Wintermute.
The project basically protects traders from being front-run, aligns incentives for block producers, and redistributes miner extractable value (MEV).
Tushar Jain, the managing partner at Multicoin Capital, shared his thesis behind investing in the protocol on Twitter saying, the investment has been made to help reduce the negative externalities that MEV has on Ethereum.
He pointed out that there has been more than $700 million of MEV on Ethereum so far in 2021, a significant portion of which is “malicious,” making the whole system worse for users.
“Malicious MEV has powerful negative externalities. It makes the whole system less secure, less stable, and less efficient. If regular users are constantly front run and otherwise taken advantage of on Ethereum DeFi, that will create a major obstacle for ecosystem growth.”
According to DeFi analyst Crypto McKenna, democratized MEV will continue to become a dominant narrative, especially after the London hard fork and the implementation of EIP-1559 as block producers receive substantially smaller revenues due to the fee burn mechanic.
This is where Eden Network comes in that helps protect users from malicious MEV by setting fair and transparent rules to decide the order of transactions within a block.
Eden officially launched along with the Ethereum upgrade early in August.
To use Eden Network, users must buy and stake the EDEN token. The news of the funding resulted in the token hitting a new all-time high at $9.27 on Wednesday and is currently down 20.7% at $7.42. Just a month back, EDEN was trading at $1.52.
The network already has significant traction, with more than 50% of Ethereum hash power participating and over 2,000 active stakers on the network.