Eden Network

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Welcome to Eden Network

What is Eden Network?

Eden is an optional, non-consensus breaking transaction ordering protocol for Ethereum blocks which allows network participants to guarantee placement and protection from arbitrary reordering. The system offers a transparent and fair set of rules to order transactions within each block. An accompanying token reward system realizes MEV profits to block producers to maximize network security.

Visit the Eden Network Website: https://edennetwork.io/

Use the Eden Network App: https://app.edennetwork.io/

What problem does Eden solve?

Eden takes a user-focused approach to the MEV problem that includes stronger incentives for all participants driven by a protocol token. Instead of sharing transactions across the network that are visible for frontrunning, users without any specialized knowledge may submit private transactions via the Eden Network in order to obtain state guarantees around any submitted transaction.

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How do trades work on Ethereum?

How do trades work on Ethereum?

So you recently took the plunge into the Ethereum ecosystem. You bought your first ETH token on Coinbase, and transferred it to your MetaMask wallet on your web browser.

Shortly after you started dabbling with Uniswap, and bought a few blue-chip altcoins.

You think to yourself, wow, this stuff works like magic.

Then the thought pops into your head — wait a minute, how does this all even work?
What happens after I submit a trade from my wallet?

Where does my transaction go?

What is the process flow, and are there any vulnerabilities along the way?

If you’ve ever pondered questions like these and are looking for answers, you’ve come to the right place.

In this article, we explain what happens to your trade from the moment it leaves your wallet, to the moment it comes back with the tokens you swapped for.

* * * * *

TL;DR

1. Trade initiation and final execution are simple, straightforward parts of the trading process

2. After a trade is sent, it goes to the public waiting pool, where it sits pending for anywhere from seconds to hours, during which time it is vulnerable to malicious bot attacks

3. Block producers are the party that picks up transactions from the public waiting pool and writes them to Ethereum blocks — they follow the rules of the Geth client they run



Initiating the trade

This first step is straightforward. The DEX you are using (e.g., Sushi or Uniswap) gives you a quote estimating how many tokens you will receive at a minimum for your swap.

You authorize the trade to occur from your wallet to conditionally spend your tokens (assuming your trade executes successfully).

* * * * *

Arrival in the public transaction pool

This is where things get interesting.

On Ethereum, after your transaction is sent from your wallet, it is funneled off to something called the “public waiting pool.”

Here, transactions sent from Ethereum users across the globe congregate together in a transparent holding pool before being executed.
Transactions remain in the holding pool for anywhere from a few seconds to several hours, depending on the priority fee used.

The public waiting pool is visible to everyone at any given time.

Everyone can see what trades are lined up to be executed, along with their slippage details.

Source: Eden Research & Analysis

In practice, this transparency opens up the door for malicious actors to engage in a malicious activity called “frontrunning.”

Frontrunning, along with other similar types of exploits such as sandwich attacks, have been coined under the umbrella of “MEV,” or Miner Extractable Value.

Most of the time, trades pass through without a problem — but inevitably, a substantial portion of DEX trades are exploited by bots, essentially creating a hidden tax for DEX traders.

To date, over 750m has been extracted from users.

Why do trades need to wait around in the first place?

This is because block producers have limited space in their blocks, and at any given time the number of transactions submitted greatly exceeds the available block space.

Block producers have to choose which transactions to write to the next block.

This takes us to the next step — transaction uptake by block producers.


Trade uptake by block producers

Block producers are like the scribes that write transactions to the Ethereum blockchain.

They are the party that has the final say as to what transactions are published to an Ethereum block.

How do they decide which transactions to publish?

Block producers run something called a “Geth client” that has rules and parameters that determine which transactions are uptaken and published to blocks.

By default, block producers run a version of Geth that says that “priority fee” is what determines which transactions are chosen to enter the next block.

So of all the transactions sitting around in the public waiting pool, block producers choose the ones that have the highest priority fee first.

The higher the priority fee of a transaction, the more likely it is to get chosen, and the less time it spends waiting to process in the public waiting pool.


Transaction Execution

This part is also straightforward.

When a transaction’s priority fee is high enough compared to the other transactions in the waiting pool, it is uptaken by a block producer, and written to one of the next blocks.

And there we have it — the trade is complete and written to the Ethereum blockchain forever.



How does Ethereum’s transaction flow compare with the traditional world?

In the traditional finance world, there are several additional steps and intermediates included in part of the transaction flow.

At a high level, this graphic shows the flow for buying something online with a credit card:

Source: BancardSales on YouTube[/b][/size]

Without going into detail, we can see there are many more intermediaries involved in this process.

Each of them takes a cut along the way in some form or another.

This process is also less time efficient than Ethereum — final settlement can take up to 30 days (after the customer pays their credit card bill).

What about buying stocks on a traditional trading platform?

Source: InTheMoney on YouTube

Buyers and sellers are matched by a third party called a ‘clearing house.’

Finalizing a transaction takes two full days after a trade is executed!

Also, the trading platform (such as Robinhood or Schwab) must front a portion of the trade value created by buyers and sellers to the clearing house.

This is important because during times of extreme demand for a given stock, trading platforms may be required to front hundreds of millions or billions of dollars overnight.

This was the case with GME on Robin Hood — as a result the platform was unable or unwilling to front this capital — and ended up preventing additional buy orders from coming through.

The final result was a poor user experience and thousands of upset and frustrated traders.


Who cares?

Decentralized platforms like Ethereum are so powerful because they are permissionless and trustless.

Final settlement happens in a matter of minutes, rather than days.

There are far fewer steps along the transaction journey, and far fewer vulnerable points to be exploited.

This result is lower risk, more freedom and less stress for the trader.

Traders own their actual assets, rather than an IOU where access is subject to the discretion of a third party.

Ethereum, and Eden Network, bring power back to the traders.

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Math Wallet Links Up with the Eden RPC

Eden Network is excited to announce its integration with Math Wallet. More than 2 million users will soon enjoy complimentary MEV protection, and have streamlined access to transaction priority through the Eden RPC.

Math Wallet is a multi-platform (mobile/desktop/hardware) universal crypto wallet that enables token storage of 60+ chains including BTC, ETH, Polkadot, BSC, Filecoin, EOS, Solana, Cosmos and more. It supports cross-chain token exchange, a multi-chain dApp store, and operates nodes for POS chains. Investors include Fenbushi Capital, Alameda Research, Binance Labs, Fundamental Labs, Multicoin Capital, NGC Ventures, Amber Group, 6Eagle Capital.

For integration instructions, see Math Wallet’s article: https://mathwallet.medium.com/mathwallet-links-up-with-the-eden-rpc-ed99f3bcd8fd


Visit the Eden Network Website: https://edennetwork.io/

Use the Eden Network App: https://app.edennetwork.io/

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Coin98 Wallet Integrates with EDEN RPC for MEV Protection and Priority



Eden Network is pleased to announce its recent partnership with Coin98 Wallet! Users will now be able to natively integrate the Eden RPC from within the app, to instantly receive complimentary protection from malicious MEV.

Eden is excited to expand access to MEV protection and transaction priority to more than 700,000 users on one of the top crypto wallets in Asia. With support for 26 chains including Ethereum, Solana, Polygon, Binance Smart Chain and HECO chain, the wallet features a sleek UI with native staking, lending and borrowing features built in.

How to set up the Eden RPC on Coin98 Wallet (for iPhone)

1. Open Coin98 Wallet and click on the ‘98’ button at the bottom

2.  Press the ‘Settings’ button

3. Choose the ‘Wallet Manager’ option

4.  Select ‘Custom Network’

5. Choose the “(+)” button in the top right-hand corner

6. Click the profile dropdown menu

7. Select ‘Eden Network’ from the options

8. Press ‘Create’ at the bottom

9. A ‘Success!’ message will appear

10. Eden Network will appear on the Custom Network page

11. You’re done! All transactions on Ethereum will receive complimentary MEV protection.

Visit the Eden Network Website: https://edennetwork.io/

Use the Eden Network App: https://app.edennetwork.io/

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Introducing: Eden Rocket RPC (beta)



Today we have the pleasure of announcing the beta release of a completely new product category for private transactions on Ethereum.

Eden Rocket RPC is a smart transaction relay that uses multiple techniques for block inclusion. As of today Eden Rocket RPC utilises an estimated 85% hashrate which results in it being the fastest private RPC on the market.

For more information on the benefit of private pools refer to this blog post 👉 https://medium.com/edennetwork/how-private-transaction-pools-work-on-ethereum-3809eb4a8083

This product is in Beta: It increases the speed of private transactions considerably, but there are some trade offs compared to using the Eden RPC which we outline below.

How does it work?

Today, the Eden Rocket RPC aggregates the hashrate from three private transaction pools on the market: Eden, Ethermine and Flashbots. Together, these three private transaction pools account for an estimated 85% of the Ethereum hashrate.

When a user submits a transaction to the beta RPC, it is sent to three transaction pools at the same time for processing (the three mentioned above).

The techniques and details for transaction handling are subject to change and improvement.

Eden Rocket RPC prioritizes speed on private transactions based on whatever is possible in the market.

What does this mean for your trades?

Ultimately the outcome should be significantly faster private transactions using Eden Rocket RPC compared to any other private transaction RPC on the market.

By today aggregating the hashpower of three networks over one, Eden Rocket RPC ensures that transactions are processed as quickly as possible.

These private RPCs collectively all offer sandwich / frontrunning protection meaning you can now, on paper, receive protection for a private transaction through an estimated 85% of the hash rate.

What are the tradeoffs?

Each private RPC has different features and is operated by a separate party. There are weaker guarantees for transaction execution, MEV protection and transaction priority.

In the worst case, your transaction will be handled as if it was submitted to the public transaction pool.

Important: Eden Network cannot control if any of the supported private transaction pools change how their RPC handles transactions.

Finally, assuming the trader also has EDEN staked, they will only receive transaction priority in situations where the transaction is mined by an Eden block producer.

This product is in BETA and traders using it must accept the risks outlined above.

Where can you track your transactions?

You will be able to track your Eden Rocket RPC transactions’ progress through the Eden Block Explorer. 👉 https://explorer.edennetwork.io/

After submission, the explorer will show which transaction pools the transaction is waiting in, and ultimately which it gets mined to.

What are the RPC details?

Add Eden Rocket to your wallet like any other RPC using the following:

Network Name: Eden Rocket

Chain ID: 1

Currency Name: ETH

RPC URL: https://api.edennetwork.io/v1/beta

Explorer URL: https://explorer.edennetwork.io/



IMPORTANT NOTE: This aggregator endpoint is still in beta, so use it at your own risk. The team has been using it extensively for weeks with good performance and no reported issues thus far.

We prioritised the launch of the Eden Rocket RPC for our community in a beta format— currently this RPC endpoint will not weight SEV layer one rewards. This is subject to change moving forward.

NB: We will be conducting ongoing monitoring on how each private transaction queue treats users’ transactions. If you see any issues please contact us in our discord.


Visit the Eden Network Website: https://edennetwork.io/

Use the Eden Network App: https://app.edennetwork.io/

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Eden Network <> Manifold Finance

Since our migration into Eden Network to focus on the infrastructure side, we have been following and discussing with many projects in the MEV space and Manifold Finance was of course one of them. Manifold has worked and launched a SushiSwap integration to bring protection to users on their favorite dapp frontend.

We look forward to working with Manifold Finance in the future with the goal of giving traders a better experience and protection on the dark forest. The Manifold team is currently testing the inclusion of Eden as one of the endpoints to send their transactions.

To reinforce the collaboration even further, both projects will be performing a $250,000 treasury token swap.


For the swap, the price calculation will be based on the 7 day TWAP from CMC values for both tokens:

Manifold Finance (https://coinmarketcap.com/currencies/manifold-finance/): $27.43

Eden Network (https://coinmarketcap.com/currencies/eden-network/): $1.06

With the above calculation, Eden Network will be sending 238,850 $EDEN tokens and receiving 9115 $FOLD tokens

About Eden Network

Eden Network is a user-focused priority transaction network on Ethereum. By staking 100 EDEN tokens, traders get access to Eden’s priority network, where transactions are prioritized over the public transaction pool and protected from malicious bot attacks.

Eden Network also has products for block producers and institutions. By joining Eden Network, mining pools can augment their income by accepting supplementary EDEN token rewards. Institutions can take advantage of Eden’s slot auctions, where consistent access to priority blockspace is auctioned off to the highest bidder.

Eden Network currently supports ~40% of Ethereum’s Hashrate. See latest hashrate figures here: https://app.edennetwork.io/

About Manifold Finance:

Manifold Finance provides solutions encompassing the middleware market for decentralized finance applications and protocols for both scaling and usability purposes. Part of our mission is helping scale the Ethereum ecosystem, which is where the idea of ‘middleware strategies’ comes into play. Our solutions can be thought of as an ‘APY strategy’ that you might find with something like Yearn Finance, except instead of providing capital (e.g. through depositing into a strategy with Yearn), they create applications that provide services that generate revenue (a prime example being YCabal).

Visit the Eden Network Website: https://edennetwork.io/

Use the Eden Network App: https://app.edennetwork.io/

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How to fairly launch an NFT using the Eden RPC

Eden Network has products for block producers, institutions, and traders with the Eden RPC and now Eden Rocket RPC.

But did you know that the Eden RPC can also be used by NFT projects to help ensure a fair launch?

In this post we will explain the problem / weakness with current NFT launches and how they can be upgraded and protected in a few clicks by launching the NFT ‘Go Live’ contract from the Eden RPC.

TL;DR

-Most NFT public sales are now botted which negatively affects the project’s community

-The bots are able to game the system to save on gas and get low cost-basis mints

-This can be simply eliminated by launching the Go Live contract via Eden RPC

* * * * * * *

A background on RPC endpoints

When submitting transactions to Ethereum, users submit through an “RPC endpoint” as denoted in web wallets like Meta Mask.

The default / standard course of action is to route transactions through the Ethereum Mainnet.

This endpoint broadcasts all submitted transactions to the Ethereum public waiting pool.

The benefit of this endpoint is that 100% of Ethereum miners participate in producing transactions sent to it. Transactions sent to the Ethereum public waiting pool are inherently as fast as possible because all block producers are participating.


The downside of the Mainnet endpoint is that it’s completely visible to those using specialized tools. As transactions are waiting around to be organized by base / priority fee and uptaken by block producers, they are visible to any third party that’s interested in viewing.

Visible details include sensitive/gameable transaction information, such as what the purpose of the transaction is, the base and priority fees used, and the nonce.
For those that are connecting the dots, this information is exactly what allows frontrunning bots to extract value from unsuspecting DEX traders.

* * * * * * *

The Problem: How this transparency affects NFT mints

When an NFT project uses the Ethereum Mainnet to launch their ‘Go Live’ minting contract, they expose themselves to being gamed by bots.

Specialized bots with the sole purpose of crawling/searching the Ethereum waiting pool for ‘Go Live’ contracts leverage this information to submit their own minting transactions immediately after the launch contract.

By doing so, bots are able to slip in cheaper, lower cost-basis NFT mints before the gas spike initiated by the general public on the next block.

This results in a bifurcated community where a small portion that run these bots are able to get notably cheaper mints than the everyone else.

With common sense we can see this is a suboptimal approach to launch an NFT.

On a play-by-play basis it works like this:

1.   The NFT project announces on twitter / social media the upcoming date/time of the NFT drop

2.   Bot owners see this date and prep their bots to start scanning the waiting pool around this time

3.   At the time of launch, the NFT project uses the Ethereum Mainnet to launch its ‘Go Live’ NFT minting contract

4.   After the transaction hits the public waiting pool (but before it’s published to a block), bots quickly analyze / sniff out the base and
      priority fee used in the transaction

5.   Bots then preemptively submit their own “Mint NFT” transactions, using a gas price one gwei slower than the “Go Live” contract

6.   This allows the bot to get their mints in immediately after the contract goes live and on the same block

7.   On the next block, the general public becomes aware that minting is now live, and they drive up the gas price as they mint

8.   The end result is that the bot gets a cheaper mint than public sale participants

9.   Because fees on Ethereum are high, minting fees have a meaningful impact on the cost-basis of the trader and their NFT collection

10. Ultimately using the Mainnet RPC leads to an unhealthy / unfair launch dynamic

Sanity check — is this even a real problem?

Yes! Although whitelisting and private sales have helped reduce the impact of botting, the total number of bots have increased.

The result is that most public sales for NFTs, especially for anything hyped, will be botted if the project uses the Ethereum Mainnet.

NFT collector @EasusJ commented this:

Some projects have already started launching their NFTs with the Eden RPC:

Solution: How to privately launch with the Eden RPC

Thankfully, there is an easy way to get around this problem to provide a fair, un-gameable NFT launch.

The solution is to launch the “Go Live” minting contract through a private transaction service such as the Eden RPC.

With private transaction pools, transactions sent from users are forwarded to a “private” waiting pool that is not visible to third parties.

Instead, the transactions and their details remain effectively hidden until after they are already published to the Ethereum blockchain.

This helps eliminate the ability of bots to crawl and sniff out the transaction details of impending NFT contract launches.

How to set up the Eden RPC?

Setting the Eden RPC up is incredibly simple. While Eden Network currently offers two RPC endpoints, the Eden RPC and the Eden Rocket RPC, for this use case we recommend sticking with the classic Eden RPC as it has stronger guarantees.

To do so, just add a custom network from within your MetaMask and enter the details below.

👇👇👇Video tutorial on how to integrate the Eden 👇👇👇

https://rpc.edennetwork.io/

After the network is added, verify that it’s selected and you’re set! You can now launch the NFT contract as normal. Your transaction will be private and the public sale will be protected from snooping bots.

1. Add the Eden RPC to your MetaMask

2. Verify that ‘Eden RPC’ is selected as the default/active network in MetaMask

3. Verify that the Eden RPC (and not Eden Rocket RPC) is selected. You can double check the RPC URL above

4. Launch the Go Live contract normally


Visit the Eden Network Website: https://edennetwork.io/

Use the Eden Network App: https://app.edennetwork.io/

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Eden Network Q1 2022 — Value Creation For a Multichain PoS Future



We are excited to be entering 2022 focusing on value creation and yield generation for the network. 2021 was a whirlwind of activity, achievements, learnings and things to reflect on.

Highlights from the year as a team included

* The long term investors we managed to secure

* Some of the largest Ethereum miners joined Eden Network and crossed the 50% hashrate threshold

* The successful ongoing security and maintenance of the Ethereum blockchain

* Working with fantastic people and partnerships including Bancor, Alpha Wallet, Coin98 Wallet, MathWallet, Gnosis, Band, Sushi and
   Alpha Finance Labs to name a few

* Immense growth of our Eden RPC and Eden Rocket RPC products for private transaction execution

* Continued growth of active EDEN stakers

As a team it is also important to recognise and reflect on learnings.

Learnings From 2021

Slots

Slot auctions allow tenants to bid on priority block space using an open auction mechanism. The auction mechanism is a harberger tax, where anyone at any time can outbid the current tenant. Our expectation was an active market where slot tenants bid on slots to secure transaction priority in Eden blocks. Slots are designed to add balance in the Eden Network economy, as winning bids burn EDEN tokens over time.

Slot tenants have and continue to extract large multiples on the slot rental cost month in month out — the benefit of the slots to slot tenants is clear. We believe that the value of slots will grow with the emergence of cross-chain trading strategies where trade execution guarantees grow in importance. We believe the Eden Network open auction mechanism can allow the market to fairly reflect the value created from this.

Currently, the burn from slots has not yet reached a point where they offset Eden Network emission levels. Even in highly volatile times (when MEV extraction is at its highest), slot auctions have been utilized only by a small number of users. However, in just the past week we have seen a large uptick in slot activity that we believe will become a sustained trend as more and more teams recognise the value of slots and come online.

RPC Product Market Fit

When launching the Eden Network the team expected that the slots would be the key use case for the network (given their value of the right of first refusal for priority block space) and while the RPC was a launch product for Eden Network, it was not expected to be a core part of the ecosystem.

Eden Network is now responsible for >1% of all transactions on Ethereum via our RPC endpoints and these private transactions are one of the network’s greatest assets.

It is clear that value creation and yield generation for RPC users/stakers should therefore be a key focus in the first part of 2022 in order to sustain this tremendous growth.

Community Communication and Issues

At launch, the Eden Network found itself embroiled in controversy. Building a community and launching a new product is already a large task but what we didn’t fully appreciate was the power of the industry that we were upsetting.

Since launch, we have helped Ethereum users get better trade execution and avoid some common pitfalls when submitting transactions. In spite of criticism from vocal and influential communities, we have focused on serving our users and pushing ahead with meaningful innovation for our transaction execution product.

Some of those benefits and innovations haven’t always been apparent to our community due to poor communication and competing narratives that have muddled the message.


Visit the Eden Network Website: https://edennetwork.io/

Use the Eden Network App: https://app.edennetwork.io/

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Key Network Assets

Eden Network sits on a few major assets that it can and will leverage for value creation in 2022.

Private Transaction Flow

Tens of thousands of private transactions land on Ethereum from Eden Network products each month, and this volume looks set to continue its growth trajectory in 2022. Each private transaction sent to a RPC is inherently valuable and will be leveraged to provide value to the network — both immediately (with SEV layer 2 values like backrunning and then a strategy like buyback and burn) and in Eth2 (a transaction no other block formation service can see giving Eden Network an edge forming blocks).

Committed Core Technical Team

A technical team with unparalleled experience on Ethereum in MEV, blockchain client development and block formation. Eden Network has consistently been first to market with key MEV innovations and security updates to its eden-geth client.

This unique knowledge and experience means that when it comes to value creation and yield generation it can consistently outperform any existing product in the category,

Partnerships and Advisory Roles

Unique advisory positions and partnerships. Within our roadmap we talked about partnerships and acquisitions, and from launch the team have taken advisory roles on projects that provide technology, value and synergy for the network.

Fostering and guiding teams and projects in their infancy is part of the core spirit of collaboration.

Ignoring any network monetary gains, these partnerships allow the Eden Network team gain insight on technical challenges that sit at the forefront of creating value in multiple blockchain infrastructure ecosystems.

This is a key foundation of supporting and building for ETH2, multichain infrastructure partnerships, sustainable yield optimisation, NFTs on DeFI and ensuring user transaction security.


Visit the Eden Network Website: https://edennetwork.io/

Use the Eden Network App: https://app.edennetwork.io/

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Value Creation and Yield Generation in Q1 2022



The release of these new product innovations will complement the existing suite that we will continue to innovate. This expansion will future proof Eden Network, and complement a core goal of providing a better and safer trading experience for Ethereum users.

2021 saw the team build foundations of this network but it’s time to think big and realise its value potential.

Staker Extractable Value (SEV) Layer 2

We’ve talked about it before and in Q1 Eden Network will be flipping the switch on monetizing >1% of Ethereum’s transactions that currently flow through its RPCs. The network has focused on a secure revenue driving layer leveraging one of its largest assets — private transaction volume.

This revenue-generating layer will then flow back to the Eden Network economy to drive a new value creation layer without compromising the initial transaction.

The outcome: A new revenue generating layer for Eden Network

End to End Product Infrastructure for PoS staking

One certainty as we move to a proof of stake world is the need for better infrastructure. Eden Network will be integrating with PoS networks in Q1 across the entire stack to leverage our product offering and expertise in:

+ Custom blockchain nodes.

+ User security.

+ Advanced RPC infrastructure.

+ Block Formation

+ Extending possibilities of DeFi with infrastructure

+ New value creation mechanisms.

Eden Network will collaborate to build and optimize along the entire stack focusing on core scalable infrastructure, advanced transaction handling + security, client development and yield generation.

We will be starting with the urgent need for liquid staking paired with yield maximisation. Launching liquid staking is a relatively easy task however when looking at the landscape the yields available to users are heavily unoptimised.

Generating competitive yields by optimising across the entire stack will be what sets each team and project apart.

The result: More yield for users, resulting in significantly higher TVL.

Multichain PoS Expansion

Eden Network launched on Ethereum and remains focused on Ethereum’s future, including Eth2 and roll-ups. The Eden Network team took the view that it could not sit back and wait for the Merge in Q2 — a dependency that may or may not be delivered on schedule.

L1’s like Avalanche, NEAR, Fantom, Solana, etc. have blossoming ecosystems showing signs of staying power, and are supported by significant ecosystem funds and growing communities.

Due to the level of demand and value opportunities, the core team is advancing the Eden Network to build for multichain products and partnerships in Q1 2022.

The result: Collaborate, optimise + innovate across the stack with alternative L1’s partners for better security, transaction handling, higher yields and higher TVLs.

The outcome

The Eden Network will expand into PoS infrastructure and go multi-chain.

+ For DeFi users: Higher yields and new options for transaction execution

+ For Networks: Increased staking TVL and network security

+ For Eden Network: Value creation and product expansion

All in Q1 2022.



Whats Next?

In the coming days we will publish at detailed look at the network’s PoS expansion plans.

Join the community

Join us and contribute as we help collaborate, solve, grow and innovate the entire blockchain ecosystem at an infrastructure layer.


Visit the Eden Network Website: https://edennetwork.io/

Use the Eden Network App: https://app.edennetwork.io/

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So You’ve Been Sandwiched

As we set into 2022, we begrudgingly present a 2021 data review on sandwich attacks on Ethereum. Why begrudgingly? Well…it ain’t pretty. The numbers are staggering. Read on to find out how and why DEX traders lost over $250 million to sandwich bots in 2021, and why this will continue in 2022 and beyond.

Data Summary

Warning: Dry and technical. Feel free to skip to the data highlights section.

The data dashboard can be viewed here 👇 👇 👇 https://datastudio.google.com/u/0/reporting/70542f61-bd69-4f77-b908-3b5d983aef0c/page/p_hhtdstybqc. Note: the last page of the raw data includes non-aggregated data, but that shouldn’t affect the accuracy of the rest of the dataset.

This data was collected from the BigQuery public dataset, bigquery-public-data.crypto_ethereum. This is subset of sandwiches that:

*  Is formed by three transactions — first and last are from attacker sharing from and to address. Middle is from the victim and has a different send address than the first two transactions

*  Includes swapping to or from wETH

*  Was profitable for the attacker

Data was obtained with three steps:

1.Collecting — The BigQuery public dataset bigquery-public-data.crypto_ethereum was queried for transaction arrangement where there were three consecutive transactions that included the above criteria. This formed a raw-sandwich.

2. Parsing — Not all transaction arrangements fitting the above conditions are sandwiches, so they required further parsing. To find a common-pool within raw-sandwich, an address was found with which Tx #1 and Tx #2 had a swap in the same direction, and Tx #3 had a swap in the opposite direction.


Further restrictions were imposed, including that the attack had to occur over a single pool (e.g. this sandwich attack was not detected), and the swap was either from or to wETH. To determine extracted value and victim-amount-in, all transfers to and from common-pool were analysed.

In order to aggregate the data, all values needed to be expressed. For sandwiches where the victim bought a token with wETH, this was easy and required no conversion. For attacks where the victim sold a token for wETH, there were two approaches — ‘Preswap’ and ‘afterswap’ values could be used if the attacker first bought the token the victim was selling on a different market for wETH. However, if this was not the case, the price of the token was determined by the swapping price in the first transaction of the attack. The latter method can give rise to inaccuracies as attacker swaps reach deep into pool liquidity and affect asset price.

3. Formatting

*  Attacker profit extractedVal — minerReward — burnedFees

*  Miner reward priorityFee + internalTransfers

*  ETH-USD daily price and ERC20 info was obtained from CoinGecko

*  Victim contract and miner labels were obtained from Etherscan

Why did we bother doing this?

Well, as you will see from the size of the figures, it’s a huge issue that garners very little attention from the wider trading community. We believe, in no uncertain terms, that this is a crisis, and one that will likely result in high user churn over the long term, hampering adoption.

There are multiple philosophical approaches to this issue. Some believe it’s best to let it exist but democratize access to it, and others, including Eden Network, believe that protecting traders from it is the best path forward.

Data Highlights (or Lowlights?)

Trader Losses: Let’s not sugarcoat it — over $254 million (84,000 ETH) across nearly 500,000 individual transactions was extracted by sandwich bots in 2021. That is $254 million essentially stolen from every day crypto traders.

To put that into perspective, if sandwich attacks were considered theft similar to other crypto hacks, this would rank as the second largest hack of 2021  👇👇👇
https://uk.finance.yahoo.com/news/five-biggest-cryptocurrency-hacks-110016976.html



The spikes you see in May and June coincide with instances of high volatility. In May we saw a huge market dump, followed by the dog money frenzy in June. These two events were responsible for more value extraction than any other times of the year by a considerable margin.

Sandwich bot profits: Of the $254 million extracted, sandwich bots profited over $80 million, with the top bot operators profiting over $16 million, and the second over $11 million. While there are hundreds of bots competing with each other, the top 10 bots by USD profit collectively took home $44 million, showing how top heavy and difficult the nefarious space is to compete in.



Note: This chart tracks extracted ETH, while our summary lists the USD conversion for digestibility.

Biggest losing tokens/communities: Sorry dog money and other meme tokens, you were the biggest losers in 2021. SHIB traders lost over $11.7 million via sandwich attacks, more than double the next closest token (excluding stablecoins).

Meme tokens are synonymous with high price volatility due to low liquidity, and generally popular with less experienced crypto traders, furthering our opinion that these hidden taxes via sandwich attacks could end up being responsible for hampering adoption in the long term.

Overall, meme tokens held four of the top 10 spots on the unenviable most sandwiched tokens list:

SHIB ($11.7 million lost)

USDC ($5.9 million lost)

LEASH ($5.4 million lost)

ELON ($3.9 million lost)

USDT ($3.8 million lost)

TRU ($3.6 million lost)

AKITA ($3.5 million lost)

SPELL ($2.6 million lost)

DAI ($2.5 million lost)

STARL ($1.8 million lost)



Note: This chart tracks extracted ETH, while our summary lists the USD conversion for digestibility.

Highest sandwiched DEXs: An old narrative was that Uniswap was the problem, and looking at the graph in early 2021, you’d be forgiven for thinking that. However, where there was opportunity for exploitation, bots would find it, and by year end, only ~20% of sandwich attacks occurred on Uniswap v2. This is not a Uniswap problem, this is a fundamental DEX problem.

Uniswap v2 ($141.3 million lost)

1Inch ($32.5 million lost)

Uniswap v3 ($25 million lost)

SushiSwap ($12.2 million lost)

MetaMask ($12 million lost)


Can DEX aggregators solve this by spreading the buys and sells across multiple DEXs? No. At the end of 2021, 1Inch was experiencing roughly the same volume of sandwich attacks as Uniswap v2, while DEX aggregators accounted for roughly 20% of all volume versus Uniswap v2 with about 80%  👇👇👇
https://cointelegraph.com/news/decentralized-exchange-aggregator-trading-volumes-surge-to-new-highs


Notably, MetaMask traders lost over $12 million. While primarily a wallet app, a swap function is also available, anecdotally used mostly by new crypto users entering the space to purchase NFTs and the latest hyped meme or metaverse token. Count this as another data point in sandwich attacks affecting the newest and most vulnerable users.



So where do we go from here?

As DeFi grows, DEX trading becomes more prevalent and market volatility continues, traders will continue to be sandwiched and value will continue to be stolen. There are various opinions and philosophies about how to best deal with this, but we strongly believe that traders require protection for the long term health of the ecosystem.

In 2021, Eden Network launched the Eden Rocket RPC 👉 https://rpc.edennetwork.io/, a product developed specifically to protect traders from sandwich bots, rather than “democratizing” and profiting off them.

When using Eden Rocket RPC to trade on Ethereum, your transactions bypass the public pool and are sent to our private network of mining partners who process these transactions at no extra cost. It’s completely free to use and prevents any nefarious bots from spying on and exploiting DEX trades.

At the time of writing, the crypto market has just experienced another large drawdown, and while we haven’t looked at the data yet, we are certain that sandwich bots profited handsomely as they did all the previous times. The status quo remains, but in less than two minutes and the click of a few buttons, you can submit sandwich-resistant DEX trades and beat the bots. Eden Rocket RPC is the way.


Visit the Eden Network Website: https://edennetwork.io/

Use the Eden Network App: https://app.edennetwork.io/

[0406Antoxa1982]

2022 Proof of Stake Expansion

The Multi-Chain of Madness



Eden Network was introduced to the world on August 4, 2021 alongside EIP-1559

The high profile nature of the launch, its speed of adoption and network utility meant for many users, it was the first time peeling back the curtain to see what happens behind the scenes of transaction execution.

Eden Network is driven by a user-centric approach, specialising in developing core blockchain infrastructure tooling, with a track record in leading scalable and secure infrastructure for the benefit of the end user.


A look at the history of Eden Network

*  November 2, 2020 — Archer DAO launches 👇👇👇 https://medium.com/archer-dao/introducing-archer-66f20d2cc425, with the goal of creating sustainable miner revenue and strengthening the Ethereum ecosystem

*  August 4, 2021 — Archer rebrands to Eden Network 👇👇👇 https://medium.com/edennetwork/hello-world-60ca685c72c, expanding its product and infrastructure tooling while maintaining the original core team


*  Shortly after launch, Eden Network closed a funding round led by Multicoin Capital 👉👉👉 https://medium.com/edennetwork/eden-network-announces-seed-round-69402b95db04; with Alameda Research, Wintermute, Andre Cronje and others joining the round

*  Eden Network provided users private transactions to protect them from MEV bots and sandwich attacks, which cost traders ~$250M in 2021 👉👉👉 https://medium.com/edennetwork/so-youve-been-sandwiched-24ea7b689c9f

*  A custom geth client 👉👉👉 https://github.com/eden-network/eden-geth was built and maintained and, at its peak, was adopted by over 50% of the Ethereum hashrate

*  As Eden’s user base continues to grow 👉👉👉 ://twitter.com/EdenNetwork/status/1490773776933470208, users continue to benefit from our next generation transaction services — secure private transactions and block ordering options through custom-built infrastructure


Visit the Eden Network Website: https://edennetwork.io/

Use the Eden Network App: https://app.edennetwork.io/