[CLOSED] Express Relay Prototype

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Also good questions, here are my thoughts:

  1. Indeed, searchers submit their transactions to the Express Relay server. The server hosts an auction that is designed to choose the subset of transactions that maximize the revenue that flows back to the protocol, and it then forwards those transactions on to an RPC node.

  2. The “won” bids are forwarded by the Express Relay to RPC nodes for landing on chain. The Express Relay cannot alter the transactions but rather just forwards them on-chain.

  3. There is a party referred to as the “relayer” (or “operator”) that handles running the off-chain components of Express Relay (the auction, the off-chain server). The DAO could choose a community member to operate the relayer function.

  4. There are ways to protect against Express Relay downtime. One way is to make the priority for Express Relay in performing liquidations on a protocol conditional—the protocol developer could make it prioritized with a time constraint (e.g. only for the first minute after a position becomes liquidatable) or with a collateralization/TLV ratio constraint (e.g. only when collateralization ratio is above 108%). Otherwise, the protocol could make liquidation permissionless, to protect against Express Relay downtime and prioritize protocol health. The protocol won’t get any of the revenue it could have gotten through Express Relay in that case, but that’s totally up to the protocol to decide what constraints and fallbacks to set.

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