State Update Auction

What is a State Update Auction?

Any transaction on the Ethereum network updates some piece of state.

These updates could be the addresses own balance, the price of an asset on a DEX, the price of an asset on a oracle etc.

There is value in these state updates, arbitrage opportunities, liquidations that can be captured by sophisticated actors in the transaction lifecycle.

For most users their transactions are currently released to the Mempool (made public) exposing them to negative externalities such as front-running & sandwiching. In addition to this any non malicious value within the transaction via arbitrage is lost.

The "State Update Auction" enables transactions to bypass the Mempool protecting them from front-running and run a "State Update Auction" in alloted block time. This enables us to recover this non-malicious value for users without delaying their transactions.

State Update Auction Benefits

  • Protect your users from Front-running

  • Recover value on your transaction flow

The Blink Transaction flow is as follows:

  • User sends transaction via an originator, for example, a web3 wallet.

  • The originator forwards the eth_sendRawTransaction / eth_sendPrivateTransaction onto Blink.

  • Blink immediately forwards the transaction to the builders, bypassing the mempool and minimizing latency.

  • The auction is run in parallel.

  • Bids are received from searchers on the transaction.

  • These "bids" (bundles) are forwarded onto the builders.

  • Transaction lands on chain either via a bundle bid or as a private transaction.

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