Shared sequencers have the advantage of enabling atomic composability which allows different rollups to combine multiple transactions into one transaction. When transactions are executed atomically, they either all succeed or do not succeed at all. This irreversible nature of executed transactions prevents the risk of partial executions or any inconsistencies that may arise from using different sequencers. Moreover, shared sequencing reduces the risk of attacks and latency associated with cross-rollup bridging.
Despite its benefits, atomic composability alone does not guarantee direct economic benefits to rollups. In FCFS (first-come, first-serve) ordering policy, transactions are processed in the order they were submitted. This reduces fees and is a great advantage for users, but rollups have less potential to earn profits from transaction fees since the amount of network activity does not impact their profitability.
Radius offers a solution to the lack of economic incentives for rollups. By leveraging the benefits of atomic composability and shared sequencing, we create a marketplace (called Benign MEV Provider) for cross-rollup transactions such as arbitrage, liquidations, and backruns, which is accessible to profit-seeking traders and searchers. Rollups will earn a share of these profits, providing them with a new revenue stream that is specifically native to the sequencing layer.
Our approach ensures profitability for rollups as we effectively utilize blockspace to protect all user transactions from harmful MEV and censorship. Rational profit-seekers can engage in cross-rollup activities, and rollups earn profits from these activities. As more rollups join the ecosystem, the value of the rollups increases, which encourages more rollups to join. In essence, all participants benefit from increased network activity, creating a network effect that contributes to the overall growth of the ecosystem.
Last modified 17h ago