A Closer Look at Cross-Domain Maximal Extractable Value for Blockchain Decentralisation

Abstract

In the current literature, many solutions for solving blockchain scaling have been tried historically, whereas most of them usually may compromise the decentralisation. Ethereum has chosen to scale by switching to Proof of Stake consensus and adding data sharding to allow Layer 2 execution to be cheaper. However, in the light of cross-domain Maximal Extractable Value (MEV), even this strategy may have centralising forces built-in. In this work, we focus on cross-domain MEV and try to identify cross domain arbitrage. In particular, we extract Uniswap data from four different domains and provide an initial analysis of how to identify cross domain arbitrages.