Introduction
Learn about Secure Block Building (SBB) and Lighthouse: Tools for L2 Revenue
Last updated
Learn about Secure Block Building (SBB) and Lighthouse: Tools for L2 Revenue
Last updated
Radius introduces a new approach to strengthen the rollup economy by unlocking MEV as a new revenue source. While rollups are critical for Ethereum's growth, their reliance on user fees introduces economic uncertainty, limiting their scalability. These fees fluctuate with network demand, leading to unpredictable revenue and constrained growth.
Secure Block Building (SBB) and Lighthouse are solutions that ensure the economic viability of L2s while managing the complexities of MEV. By turning MEV from a potential drawback (e.g. frontrunning that harms users) into a safe revenue source, these tools incentivize rollup adoption and development, ultimately benefitting the Ethereum ecosystem.
SBB collaborates with searchers to capture MEV for L2s, while Lighthouse establishes a decentralized network that connects rollups and searchers to capture broader MEV opportunities across networks. Together, they unlock otherwise inaccessible MEV, delivering scalable revenue and fostering a unified, economically aligned Ethereum ecosystem.
Secure Block Building (SBB)
A rollup-integrated solution with MEV capture capabilities for L2s enabled through searcher collaborations, unlocking new revenue for rollups.
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Lighthouse
A decentralized network that maximizes MEV revenue opportunities by connecting multiple L2s and searchers, enabling the execution of cross-rollup strategies.
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MEV, or Maximal Extractable Value, is the profit that block producers can make by reordering or including transactions within a block. MEV activities fall into two main categories: those that benefit market stability and those that harm users.
Beneficial MEV:
Arbitrage: Balances prices across markets (e.g., CEX-DEX, cross-rollup, L1-L2, atomic) to improve market efficiency
Liquidations: Maintains protocol stability by closing positions with insufficient collateral
Harmful MEV:
Frontrunning: Exploits user transactions by trading ahead of them, causing higher slippage costs
Sandwich Attacks: Manipulates asset prices before and after a user's trade to extract profit at the user's expense
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