Coinbase Cloud has enabled the Flashbots’ MEV-Boost.
The crypto exchange’s new cloud infrastructure platform tweeted Tuesday that users staking Ethereum could choose to receive the Maximum Extractable Value (MEV) rewards enabled by Proposer-Builder Separation (PBS).
Coinbase Prime and Retail customers that stake ETH will earn the extra rewards automatically.
As Flashbots’ chief architect explained on the Unchained Podcast in August, MEV-Boost is a software that enables any Ethereum validator, from the largest staking pool to a solo validator running it at home, to access MEV.
The MEV is the reward paid out to validators for reordering transactions within a block. An MEV-relay, like MEV-Boost, allows validators to build more profitable blocks to maximize their fee income.
Proposer-Builder Separation or PBS works to separate building blocks from transaction validation, which prevents the theft of MEV that could potentially control the transaction ordering.On-chain data shows that Flashbots’ MEV-Boost accounts for more than 81% of active relays. This has posed a concern for some members of the crypto community given Flashbots’ decision to comply with OFAC-sanctions and ban transactions linked to Tornado Cash.
“Although MEV-Boost is not a perfect MEV solution, we believe it makes the right tradeoffs to benefit Ethereum’s validators, network, and users while other solutions are being developed,” Coinbase Cloud said.
Coinbase Cloud also plans to continue operating validators that do not have MEV-Boost, in the name of “block-building diversity” to support Ethereum’s decentralization and censorship resistance.