Relay v3: Optimistic Bidding

Relay v3 introduces Optimistic Bidding, a revolutionary approach that enables block builders to submit bids before full block validation, significantly improving MEV capture rates.

What is Optimistic Bidding?

Optimistic Bidding allows block builders to submit their bids to the relay while block validation occurs in parallel. This approach reduces latency and enables builders to compete more effectively in time-sensitive MEV auctions.

How It Works

1. Parallel Processing: Builders submit bids while validation runs concurrently
2. Provisional Acceptance: Relay provisionally accepts bids pending validation
3. Fast Path Execution: Valid blocks proceed immediately to proposers
4. Fallback Protection: Invalid blocks trigger automatic fallback to next-best bid

Benefits for Block Builders

Reduced Latency

• Submit bids 40-60ms faster than traditional sequential validation
• Compete effectively in sub-second MEV opportunities
• Improved success rates for time-sensitive arbitrage

Higher Win Rates

• Participate in more auctions per slot
• Submit competitive bids closer to slot boundaries
• Capture MEV that would otherwise be missed due to timing constraints

Risk Management

• Automatic fallback mechanisms protect against invalid blocks
• Reputation scoring system maintains network integrity
• Graduated trust levels based on builder history

Technical Implementation

Builder Requirements

• Minimum reputation score for optimistic submission eligibility
• Collateral requirements for high-value blocks
• Compliance with relay validation standards

Validation Pipeline

• Asynchronous validation of optimistically submitted blocks
• Priority queuing based on bid value and builder reputation
• Real-time feedback on validation status

Performance Metrics

• 45ms average latency reduction
• 23% increase in successful bid submissions
• 99.97% validation accuracy rate

Getting Started

Block builders can enable Optimistic Bidding by:

1. Updating to the latest relay client
2. Meeting minimum reputation requirements
3. Configuring optimistic submission parameters
4. Monitoring performance through our dashboard

Security Considerations

Optimistic Bidding maintains security through:

• Cryptographic proof of block validity
• Slashing conditions for invalid submissions
• Rate limiting based on builder reputation
• Continuous monitoring and anomaly detection

Start using Relay v3 with Optimistic Bidding today to maximize your MEV capture potential.