High-performance MEV Infrastructure for
Validators and Searchers on Solana
INTRODUCTION
Introduction
● About Jito Labs
● MEV
● Products
● Revenue Estimation
● Next Steps
INTRODUCTION
Jito Labs
● Formed August 2021
● Backgrounds in distributed systems, firmware, robotics, and big data
@buffalu__ @segfaultdoctor @0xedgar
@JP_Hackworth @evanbat_ @0xspl_iff
INTRODUCTION
Jito Labs
● Mission
○ Maximize the performance and efficiency of Solana
○ Provide MEV transparency
○ Minimize negative externalities of MEV on Solana (dropped
transactions, excessive forking)
○ Efficiently extract and distribute MEV to Solana stakers
MEV
What is MEV?
● Value that can be extracted by block producers by inserting, reordering,
or censoring transactions.
○ Arbitrage, liquidations, frontrunning, NFT sniping, and more.
● Important to maximize MEV:
1. Better security and more decentralization
2. Dapps required to minimize MEV to users -> stronger protocols
3. Minimize negative externalities to users
4. Minimize MEV blockspace and load on network
5. Largest value capture for L1
MEV
NFT Drop on Solana
Data from Leo @ Certus One #mb-validators July 25, 2022
MEV
MEV on Solana
MEV Failure Rate MEV YTD MEV Blockspace
97% $37M 5-20%
Incoming Improvements
Local Fee Transaction
QUIC
Markets Scheduling
Products
Overview
Jito-Solana Client Block Engine Relayer
Jito Bundles Mempool ShredStream
Products
Architecture
Searchers
(HFT)
Relayer Block
(TPU) Engine
Validator
Transactions TXs & Bundles Shreds
Products
Jito-Solana
Modified Solana MEV Payment &
Bundles
Labs Client Distribution
Block Engine
Relayer Client ShredStream
Client
Products
Block Engine
First Block Builder Off-chain
Simulation Engine
on Solana blockspace market
Pending Bundle and
ShredStream
Transaction transaction
Forwarder
Stream endpoints
Products
Relayer
TPU Proxy QUIC & UDP Filter & Sigverify
Forward, delay, Heartbeat & Censorship
propagate Fallbacks Resistant MEV
Products
Relayer
Products
MEV Payment and Distribution
Rotating Tip Validator
8 Static Tip PDAs
Receiver Integrated
Airdrop-based Delegate or own No private key
MEV Distribution merkle root upload custody of funds
REVENUE
Revenue Estimation for Validators
● Several assumptions
● Factors:
○ Total MEV
○ Tip percentage
○ Stake weight
● Example Numbers:
○ Lower bound yearly MEV: $60M
○ 50% tips (ETH common MEV >95%)
○ 0.1% of total stake
○ Revenue: $30,000 before MEV commission
FIN
Next Steps
● Testing
○ Past:
■ Running client for several months on testnet
■ Several thousand bundles submitted
○ Next few weeks:
■ Internal alpha testing on mainnet
● Documentation
● Audit completion (Neodyme)
● Open source validator, relayer, on-chain programs
● Join our discord, follow @jito_labs & @buffalu__ on twitter for updates
Disclaimer
Disclaimer
This presentation and all information contained herein (collectively, this “Presentation”) is
solely for information purposes to provide recipients information about Jito Labs, Inc. (“Jito
Labs”). This Presentation is provided “as is”, does not purport to be all-inclusive and none
of Jito Labs, its affiliates, or any of their respective directors, officers, managers, members,
employees, agents, or other representative, makes any representation, warranty,
declaration, guarantee, certification or promise, in each case whether express, implied or
otherwise, as to the accuracy, completeness, or reliability, of this Presentation. This
Presentation does not constitute any offer to sell, a solicitation of an offer to buy, or a
recommendation to purchase or offer to purchase any security of Jito Labs. You are not
permitted to construe this Presentation, including the contents herein, as legal, tax,
accounting or investment analysis, recommendations or advice. You should consult your
own counsel and tax and financial advisors as to all matters concerning Jito Labs.
