I recently published a breakdown of how the adoption of ERC-4337 will impact the current MEV supply chain on Ethereum. If you are interested in diving deeper into the world of ERC-4337 and MEV, you can read the full post on HackMD.
The high-level summary of the post can be found below:
- In the beginning, Ethereum had a single public venue for transactions: the mempool. As use of the network has evolved, more complex tx venues have developed with some network actors keeping their own private mempools.
- 4337 is set to accelerate this trend of alt mempools. Once widely adopted, ERC-4337 will create alternate “user operation” mempools. This will have the effect of fragmenting public sources of MEV opportunities.
- 4337 will add 2 new actors to the MEV supply chain, “bundlers” and “paymasters”, both of which have functionality that may be subsumed by searchers, builders, and OFAs (order flow auctions).
- OFAs will also most likely provide support for user operations.
- 4337 alt mempools may be laying the groundwork for a global intent gossiping layer, which if equipped with sufficient cryptography, could allow for general purposes solvers to match a users intent to a relevant counterparty intent before even hitting the chain.