Mode is proud to partner with Shutter to announce the impending launch of the Shutterized Mode testnet. Slated for release in the next three weeks, this initiative marks a crucial advance towards a fully MEV-aware Mode ecosystem. Our collaboration signifies not just technological integration but a shared vision for a network that is safer, more resistant to censorship, and protected against front-running—all while maintaining a stance of neutrality at the base layer.
The Encrypted Mempool: A Cornerstone for MEV Strategy
At the heart of our strategic development is the implementation of an encrypted mempool, poised to serve as a foundational element in Mode's comprehensive MEV-aware strategy. This innovative approach aims to foster sustainable MEV extraction and distribution methods related to back-running, thereby unlocking new revenue streams for our ecosystem.
Background: A Tradition of Innovation
Mode's adoption of Sequencer Fee Sharing (SFS) has already set a precedent for distributing sequencer fees among developers and applications built atop our platform. With the integration of revenue from MEV extraction, we anticipate introducing an additional layer of developer incentivization, further enriching our protocol's utility and appeal.
The Testnet: A Dual-Focus Evaluation
Our collaboration with Shutter will be showcased through a dedicated testnet, designed to assess two critical areas:
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The Implementation of a Shutterized Encrypted Mempool: Focused on front-running protection and real-time censorship resistance, this feature promises to enhance trading safety for DeFi users.
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A Two-Stage Back-Running MEV Extraction Strategy: This approach not only aligns with our vision for a more profitable trading environment but also ensures that developers and applications built on Mode are aptly rewarded, nurturing a vibrant ecosystem.
Collaborative Milestones and Roadmap
Building upon Shutter's roadmap for a Shutterized OP Stack testnet, this partnership endeavors to extend its reach. With the backing of the Optimism Collective for developing a generalized encryption interface, we're poised to revolutionize security and efficiency across DeFi.
Our roadmap is ambitious, with the Shutterized Mode testnet launching in February 2024, followed by a Proof of Concept (PoC) for MEV extraction and the introduction of an MEV-aware Mode mainnet between Q2 and Q3 2024. By Q3 2024, we anticipate integrating MEV auctions, setting a new standard for transactional security and efficiency.
Your Role in Shaping the Future
The participation of our community in the upcoming testnet phase is not just encouraged—it's essential. Your feedback and insights will play a pivotal role in refining this collaboration. For more in-depth information, technological insights, and updates on our progress, we invite you to explore the detailed post on Shutter's blog.
As we embark on this pioneering journey with Shutter, our commitment to delivering a secure, efficient, and equitable blockchain experience has never been stronger. The possibilities of this collaboration are boundless, and we look forward to exploring them with you, our community.
Stay Engaged
Join us as we navigate this exciting new chapter in DeFi. Your support, participation, and feedback are invaluable as we work together to redefine the future of blockchain transactions.
Here's to building a more secure and efficient DeFi ecosystem—together.