MEV Protection for Lido Validator Operations

1

Dear Lido Team,

I’m reaching out about MEV Shield - an open-source, high-performance MEV detection system that could enhance protection for Lido’s validator operations.

Validators face MEV-related challenges in block production and transaction ordering. MEV Shield offers:

  • Real-time MEV opportunity monitoring
  • 1000+ TPS processing capacity
  • <15ms detection latency
  • Comprehensive risk assessment

Benefits for Lido:

  • Enhanced validator protection
  • Improved block production efficiency
  • Competitive advantage in staking services
  • Additional value for stakers

Project: GitHub - kemboisre-ctrl/mev-shield: 🛡️ MEV Shield - Real-time MEV detection & protection system. Monitor Ethereum mempool, detect arbitrage opportunities, and protect against front-running in C++.

I’d welcome the opportunity to discuss how MEV Shield could benefit Lido’s operations.

Best regards,
Donald Kemboi

[email protected]

4

Hi Donald, could you explain a bit more in detail how this product would tie into the protocol? Since the majority of blocks are produced using relays, I’m not sure where this would fit in. Additionally, what is it protecting against specifically?

thanks!

5

Hi Sven,

Thank you for your questions - happy to provide more detail.

How this product ties into the protocol:
Our arbitrage detection system is designed to enhance MEV (Maximal Extractable Value) capture for Lido validators by identifying and executing profitable cross-DEX arbitrage opportunities. While relays handle block production, there’s still significant MEV opportunity in the transaction pool that can be captured through sophisticated arbitrage detection.

Where it fits in the relay-based block production flow:

  1. Pre-block construction: Our system monitors multiple DEXs (Uniswap V2/V3, Curve, Sushiswap) in real-time

  2. Opportunity identification: Detects price discrepancies across venues before they’re included in blocks

  3. Bundle preparation: Creates optimized transaction bundles that can be proposed to relayers

  4. MEV sharing: A portion of captured value can be directed back to Lido stakers

What it’s protecting against/solving:

  • MEV leakage: Ensuring Lido validators capture arbitrage opportunities rather than external searchers

  • Inefficient execution: Current setups often miss cross-DEX opportunities due to latency or incomplete market coverage

  • Value left on table: Significant arbitrage opportunities exist between major DEXs that aren’t being fully captured

The system uses real-time blockchain data from your validators’ perspective and can be integrated either:

  • As a standalone service for Lido node operators

  • Or as part of the relay infrastructure for enhanced MEV capture

Would you be open to a brief call to discuss potential integration points and demonstrate the system’s capabilities?

Best regards,
Donald