Ethereum developers have proposed a circuit breaker mechanism that would halt token outflows exceeding a predetermined limit as a security measure.<\/p>\n
The EIP-7265 would allow developers to specify the value of withdrawals that triggers the circuit breaker, and whether that takes the form of delayed settlement after a cooldown or completely reverting attempted outflows. The feature could prevent hackers from immediately draining the assets of exploited DeFi protocols and protect users against losses.<\/p>\n
The proposal<\/a> has garnered support on Github. However, Enbang Wu, a smart contract auditor, suggested<\/a> adding a timelock function to protect users against administrators abusing ERC-7625. A timelock would give users a grace period to withdraw their assets in the event an administrator suddenly changes the circuit breaker’s limit.<\/p>\n \u201cThe proposed standard is agnostic to what the admin is\u2026 it could, for a given app, be decentralized, [or] only operate on a timeline,\u201d replied<\/a> Daniel Goldman, a software developer. “I don’t think the standard itself needs to be opinionated on this.”<\/p>\n The proposed ElP comes as core developers are working to ship Ethereum’s next upgrade, Dencun<\/a>which is tipped to bolster the scalability of Layer 2 rollups by orders of magnitude.<\/p>\n On July 1, FLCL, an Ethereum developer at Nethermind, tweeted<\/a> that the seventh closed devnet for EIP-4844, the core proposal included in Dencun, was live and stable. EIP-4844 improves data efficiency on Layer 2 by replacing bandwidth-intensive \u201ccalldata\u201d with lightweight blobs.<\/p>\n Great to see [Devnet 7] stable for over 9,000 blocks,” said<\/a> Anthony Sassano, host of The Daily Gwei podcast. \u201cThis is [EIP-]4844 running live on a devnet.<\/p>\n Combined transactions on Layer 2 are currently outpacing mainnet by 250%<\/a>According to L2beat.<\/p>\n On July 1, Toni Wahrstatter, an Ethereum researcher, tweeted data showing more than 95%<\/a> of blocks are processed through MEV-Boost, software allowing validators to earn extra rewards from Maximal Extractable Value (MEV).<\/p>\n MEV describes arbitrage techniques validators use to extract slippage from on-chain transactions, including transaction reordering and sandwich attacks. Eigenphi, an MEV data aggregator, estimates MEV bots made off with $1M<\/a> in profits over the past week.<\/p>\n The data also shows the dominance of Flashbots, the MEV research team that developed MEV-Boost, dropped to 22% after peaking at around 70% last November. Ultra Sound is now the top relayer with 30%.<\/p>\n Flashbots drew criticism last year after confirming<\/a> it complies with US Treasury Department sanctions blacklisting wallets associated with the Ethereum-based coin mixing protocol, Tornado Cash<\/a>, Flashbots responded by open-sourcing aspects of its code, allowing developers to design MEV-Boosters relayers that disregard the sanctions.<\/p>\n According to Mev Watch, only 27%<\/a> of blocks now comply with US sanctions, down from a high of 79% last November.<\/p>\n<\/div>\nMEV Sector Expands<\/h4>\n
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