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auction - should (header,bid) messages be publicly accessible during the message passing period? #112
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Description:
In the current design of MEV-Boost, relays release (header,bid) pairs to all instances of mev-boost that pings it (please correct me if this is wrong). This means the pairs are public information that can be used as input for auction participants.
For example, a builder could watch the 'mempool' of (header,bid) pairs, see what the maximum bid and compare it to the maximum they're willing to bid. If they can bid higher than max_current_bid then they just add 1 wei to it.
If you assume this behaviour from multiple builders, we have a game where:
- the optimal bidding strategy is to bid by increments and always bid the smallest increment allowed more than the current 'winning' builder.
- the optimal bidding strategy is to wait until the last possible moment to bid as to not reveal the information to other bidders.
Questions:
- Should we make the 'mempool' private only to the proposer of a slot? Technically this would require proposers to send an authenticated message to the relays, proving that they are the proposers of the current slot. How technically difficult is this?
- Is this PGA behaviour problematic? Does it overwhelm the communication network or pollute its bandwidth with incremental bids from builders or burst of bids close to the deadline?
- What does this non-sealed bid auction look like?
- Is this a worry at all since in a repeated game, this should trend towards bidding max of the opportunity?
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