Auction-Based MEV on a Gasless, High-Performance EVM Mini-dApp Blockchain

Transcript

Now, please welcome our next presenter, Mr. Neu. Mr. Neu, the floor is yours. >> Thank you. >> Touching. Yeah. So, um, GM everybody. So, um, this is Neo um, from Kay. Um today I want to go for a talk in a little bit more I would say deep because I got 20 minutes to talk about that. Sorry about that. It might be another 20 minutes on the fast on the final day. But uh today we're going to go through a um mechanisms of uh auction based me uh being built on uh with a gas abstractions being built on a EVM chain that is focused on the miniaps.

Now if you may know or may not know about kaya. So Kaya basically is a um I would say messengers layer one. We are the exclusive layer one for both line messengers and cacao talk combined. So we are very much uh relying on our super app infrastructures which is the messengers and we have been serving the distribution channel of over 250 millions monthly active users. all depends and rely on I would say enabled by high throughput layer 1 EVM layer 1 that we have been running for longer than 5 years because Kai is coming was coming from a chain merge between Clayton and finer which is a

blockchain project between uh I mean from line messengers and cacao talk. So as I mentioned it was all you know coming an exclusive layer one for cacao talk and lion messengers and all combined together we are serving the 250 millions monthly active users right here. Now our mission is extremely clear. We have 250 millions monthly active user meaning that we should focus on on boarding the web two users to the web 3 on kaya but we need to figure out the ways I would say there are many web 3 project thinking of different initiative to on boarding the web two our solution was starting with the line

messengers we are the super app chain with the lines minab so what we have is we bring on the line miniabs ecosystem system on Kaya as a underlying layer one and further down we have the that portal very similar to the app store you know from Apple that you will be able to interact subscribe and use and play the mini games or mini dabs right there all via on the same D portal on the um you know line messengers you don't have to go out it's just very very inclusive I would say um environmental experience with it so Actually when we pushing for the initiative of miniabs it was all um

coming from the January. So we were running um what we call the kite wave. Uh so far we have onboarding more than 100 miniaps already but that was coming from a pool of thousand applications they're trying to building miniaps on the line messengers and we have been ranked number one in active users among all the EVM chains um you know separately and so far we have been I think when I check the latest number is 65 millions um new wallet um we have created already since the launch of it and most importantly we have already on board 140 millions um cumulative users and the spending potential for um for the top brand dabs is actually more than

500 bucks. So quite spanding bec because of the super app infrastructures and super app u background of it. Now I I gave a bit understanding and background of the kaya project but whatever initiative that we talk about the grow ecosystem is all enabled by the kaya blockchain. uh as I said this is fully EVM compatible you know since 2019 has been almost six years from now we have already been uh 2.6 six billion transactions over five years and produced a block you know more than 200 millions already fast reliable cheap gas I would say very low gas fee um very stable gas prices only around onethird

sorry onetenth of what we have from Ethereum as of today and we have consistently or constantly looking for um user experience improvement on a layer one perspective I know dabs you could also have so many UX um improvement of it but we are thinking about from a layer one perspective. So we start with the gas abstraction. We actually have the gas delegations deployed when we launch the chain which is around 2019. is quite a early gas ab uh I would say delegation model and further down uh early this year we actually launched a gas abstraction which I actually share during the FCC two three months ago as well that's why today I also want to talk about that but um user experience on the gas

abstraction may be one of the way but that there are also so many stakeholders uh within the chain and trying to interact with the chain there are one group of users they uh the searcher. So how are you going to build a chain that is scalable you know uh with a very good UX but you won't be having different groups that um actually damaging the user experience um of your ecosystem or blockchain that is what I want to talk about the MUV on kaya which is um I would say slot based auction me on kaya so the reason why we have seen looking into that because thanks to the miniabs initiative that we mentioned we start

seeing a lot of TGE the token generation event for each of the minabs and we start seeing a lot of um you know onchain trading volume for volumes are actually coming up and coming with the miniab ecosystem. So this naturally leads to the MUV which is the maximal extractable values of it. I mean what does it mean is like for example a user trying to swap A to B from a DAX and a searcher actually if they know that is a high volume or big volume trading or V they can actually frontr run or back run the transactions to have it for their own value for their own profit and with that you'll be having a lot of transactions right there which I'm going

to cover in a second but it could be all represent the value that are extractable from transactions in a Brock and for example uh last war um on Dex for example you have the minting event of the NFT from uh you know one of the miniabs right there so there's three types of MUV as I just mentioned there you know front running back running sandwich mostly it's back running that you see they saw a user transaction they put further transaction work that on their own purposes and trying to maximum the values that they will be getting which is from the searches draw I Everybody got their own agenda of it. You know, we want to build a perfect chain with the UX the best UX builders want to get the values and get

adoption. Search is looking for profit for each of the transaction and figure it out on the broke mining. So why we look into MUV? Because due to the first come first serve searches send tons of transaction in the network. It could be back run fun as I said and the MUV pro as we did the research is quite centralized. um at the moment for the Kai chain and also for you know most of the EVM layer one as well and we need to figure out or any EVM chain we need to figure out how to prevent malicious at or validators. You either have two options the first option is to ban the MUV activities at all. You need to have

some kind of scanners to looking into that and you ban it right away because not feasible in a private blockchain. But being honest, it's impossible to do that because it's unavoidable. We make MU to be a bit more fair, transparent, profitable for the ecosystem. And this is what we trying to do. We want to make a fair and transparent ecosystem for it. Our core idea is to introduce a public auction market which I'm going to give a bit more details in a second for me chances of the searchers and use the tip generated from the auction for the ecosystem to maintain it. There are a few requirement for example you know uh we have the 1second block time on the layer one so we cannot actually have a lot of time for the auctions uh we need

to think about reduce the user latency of it so we need to think about the state u like a stateless verifications uh of the searches as well and we don't want to have any consensus changes because it's going to take forever it's going to be very you know uh complicated to do that we don't want to kind of affect the core consensus of it and final requirement is to minimize the no bur burden. So the auction process should not significantly increase the operational load of the consensus node which is the validated nodes on kite. Now we have some ideations right here which I'm not going to go through everything but we have the new rule coming from our network right now which what we call the auctioneers which is they are running as a row which should

be stateless and basically what they do is process the auction on demand from the searchers and send the auction resell to the network via the consensus node which is the validated nodes that I mentioned. So they could also verify whether the consensus node is actually doing the right job as expected whether the fid uh like the valid datas ignores the bit where the validators replace the bit without any communications and also for the file data itself process the auction resell we uh receive from the auctioneer and order and execute the bit transaction as normal when they do the broad productions as well. So this is overall structures of it. How does it work? As I just summarized, you you you

do have the long auction searches keep having it, but that will only uh keeping on the endpoint. Uh Kaya actually running on a uh infrastructures in the way that we have the endpoint. Have all the RPC. You have the proxy node also as a proxy between the consensus node and the um EN the endpoint. And consensus notes is actually the file data note that we have. As I mentioned the uh auction transactions will be sending in from searcher to the auctioneer and then auctioneer will be organizing it and maybe um you know taking the deposit of it and they will be designing the winners bid sending to the consensus note the auction result will be stored offchain and we also have a auctioneer monitoring as well and we also need to

think about as kaya is a one second blockchain what does it mean is there will be a huge demand of the um I would say uh the transaction latency if you need to include the whole thing as I put right there from the right hand side your right hand side and we are talking about 1 second block time so you need to at least leave some buffer like 250 milliseconds right there for the buffer for that and so that um that will be making sure that 1 second block time won't be compromised and we need to also preanding but I don't think I'm going to go too deep onto that but the long story short if uh if the searchers manipulate the bit um we always have the back running opportunities is still alive and the

searcher can alternatively send transaction through EN to avoid a bit and these are different abusing mechanisms that we are thinking trying to prevent it so but anyway as I said um even so consensus no um sorry a bit typo right here consensus no abuse is won't be possible um on the Kai ecosystem or network is because we also have a smart contract to maintain and manage um the consensus node a validators note right the on kai ecosystem we do also uh roll out the 4337 um because we're EVM chain of course um it's just come with it uh with the with the features we also have our own auction entry point uh as a

function and also auction deposit so basically um um the auctioneer will take the deposit from the searcher and then they will just compare with not just in first in first serve but compared with the highest transactions fee and highest deposit that they have to determine the winners of this um with that this is the overall of the auctions mechanism. First you have the registration. Second you have the pending transactions um subscription. Then you have the bid submissions um which is from the searcher. Then we have the winner selection from the auctioneer and everything going back to the consensus data and include the transaction alongside other user transactions to

produce abroad. Now I want to talk about the second major UX of Kaya that we have been working on which is the guest abstractions on protocol. Normally you have the pay master as a dabs at the third party but we do launch our guest abstractions on the protocol. Now I want to go very deep on the topic. Does it mean low gas will always guarantee good UX? Is it everybody's looking for? Oh low gas that's good UX. uh low transaction cost on the user and so we must be happy but honestly for most of the EVM if you don't have the guest abstractions on the protocol you will need to rely on the pay master to do that and then most of the guest must be

paid settled with your native currency of it so this create a fragmented experience and add complexity and frictions creating one of the most pressing US problems in web 3 today if you don't have the native currency you cannot send any transactions And in the past we uh within the Ethereum ecosystem there are many many work u already completed you know there are 4337 as I just mentioned 2771 also we likeed 2612 for the permit functions so on and so forth we could see um you know this is actually a huge step forward improving the UX you know from the users actually sending a transaction and paying for the transaction it simplifies how user interact with the you know DAPs or decentralized

applications for kaya. Oh yes, we have a meeting and for kaya for kaya um we look at the um gas attraction in a way that the GA support the stable coin miniap tokens and bora so that you could use either of the tokens within the kaya ecosystem to pay for the gas. So you do not have to pay for the gas in kaya. This is abstracting the complexity of gas V and transactions with native gas token which is K for this case and we have implemented our unit GA architectures on our mainet on the protocol level. it already comes with your transactions and you don't even know about that as a user when you actually pay u in other USDT or

maybe other stable coins or maybe other you know ecosystem tokens and this gas abstraction that we have on the protocol layer is actually uh enabled by the gasless transactions which is trustless gasless transaction model on protocol layer. So as I said um now with that long story short oh trading with Kai Ga you could use whatever transactions uh whatever tokens that you like to use as long as this is included in the ecosystem for example our USDT the native USDT that we have while trading without kaya it will be like this UX perspective this is just an example when you go in if you don't have enough kaya they will just pop up to you and asking hey I found you have some USDT balance

do you want to use your USDT balance to pay for your transaction simple as that for the users but for guestless transaction people always having the point that um I would say complicating or maybe uh mixing that together guesses transaction means I don't need to pay for the gas no you pay for the gas in a different way so this is the mechanism I will just go very quickly so the 247 kip 247 our own uh improvement proposal introduce a getless transactions in a way that you know they can swap with the white list fungeible token into kaya even though they don't process any kaya for the kai transactions. So basically the key point is from the block proposal

the consensus new they temporary basically they will lend the required gas fee in kaya to the users for a token swap but anyway whatever I talk about right now as a user you won't know about that what you know is here if you don't have enough uh kay then you just use your USDT if you have that but deep down it works in this way you have the land transactions from the proposer to the user The user then use the borrow kaya to execute a swap transactions uh from their GA token to the kaya. Then user will pay the borrow kaya from the kaya token that they have you know receive via the swap then you know back to the uh consensus or the block proposal with

the remaining kay that they have the user then proceed with execute the original intended transaction. as normal land transaction in a way that as I said this is this is a block proposer inject a land transaction um you know onto that block when they trying to build a block so they would put a land transaction to start with because this is how it works we also think about what if oh you have so many step you have land transaction you have approved transaction swap transaction and then the actual user transaction just to do the gas attractions I know it's complicated but Again as a user you won't see that that's the whole abstractions layer of it but what if one of the transaction on your right does not succeed what happened that's why we

need to think about keep everything to be atomic as possible that's why we have another kip called the transaction bundle is it is either the whole bundle go as you know you expect or nothing will be successful not no transaction will be successful this way but anyway so this is actually forming a very strong um foundations for Kaya especially our miniap ecosystem that the future gas token could be any stable coinbased gas so we have more use cases for our ecosystem token even though it's a TG from the minabs and we have flexible GA right now we have zero friction adaptation when new tokens launch on Kaya which is everybody builders right

here when you go onto the TGE stage your token will be one of the guest payment token as well automatically. This is another thing that we talk about the fee delegation but that's five years ago basically user you know relying on a third party like a service like a D that itself to pay for your guests. Now I want to use the remaining two minutes and quickly go through what we have. Kaya is right now focusing on the stable coin orchestration layer. Three months ago we have onboard USDT. So we have native USDT on Kaya. What we have right now we are going five weekly on enable more local stable coin and we have already have JPYC locally we have um also uh speaking with the local

jurisdiction we also have the IDR actually all the way coming from Indonesia as well so we connect and orchestrate the insurance circulation and utilization of stable coin into a unifying system so we trying to build a stable coin platform and with that stable coin ecosystem kai will be the underlying layer of it. On top of it, you have different stable coin asset that we will be on board as many as possible. Define layer will be on top of it you know interacting around this stable coin asset. We also most importantly we want to build a service that people will be using. That's why messengers is the greatest distribution channel right now I would say in the world like very easily you have 250 millions monthly active users right

here. Even though you have a product, you have the distribution channel right away to have it and on top of it application could be built while you have this kind of use cases about remittance payment or even super earn or earn that you might have you could build on top of the messengers itself for the users. Now this is what we're trying to build stable coin infrastructures define usage and real world usage as well uh thanks to the um the messengers itself and we also provide the builder support like the hackathon. Recently I have few news to uh announce. Recently we have successfully launched uh the beta of the super earn on the line messengers. So basically is you would learn earn like a pro at least for 78% APY. Uh everything is secure smart simple everything happen

as simple as this UI. If you're interest scan the QR code, join the weight list and start earning like a pro online messengers. This is fresh news really fresh from yesterday. So we have integrate and partnered with chain link officially and they will be support um they will be uh the CCIP will be supporting kay and we will be one of the uh supporting chain then we will be enabling more lanes right now to make it happen for your assets from different chain if you trying to be a builders building on it or your users on K perspective and this is for the builders actually we have two more days two more days to go until the deadline because we want We want to give the opportunity to

everybody the builders right here. So that's we have the kite wave stable coins some hackathon. Um if you are interested you can scan the QR code and go to the door hacks directly and submit it. So basically this is uh only focus on D5 mini deps that you are trying to build and we are targeting to the live launch and we are targeting for builders who are committed um to ship real product and most importantly it's three more actually two more days to go uh until September 21st. So if you think of Kaya last but not least Kaya is the Asia super app chain and mobile first and stable coin gateway to the web 3 in Asia for everybody. Uh if you're interested about uh some news about kayak feel free to scan more QR code right here for the

exercise. Other than that thank you very much everybody for your attention and I think I want to say thanks to the at corn organizer for having kite as well. That's everything for me to everybody. Thank you. [Music]