App-Specific Sequencing (ASS) & LVR Technical Debate with Yuki Yuminaga & Alex Nezbolin

Another technical debate served up for you guys around the redistribution of MEV to apps, the tradeoffs of sequencing for apps, composability, LVR and more.

We had the pleasure of chatting with Yuki Yuminaga & Alex Nezbolin, two gigabrains, about the tradeoffs in the app specific sequencing (ASS) paradigm. This concept was introduced by Yuki from Sorella Labs, which aims to optimize how transactions are processed onchain.

In this discussion, we explored how ASS allows customized transaction sequencing tailored to individual app goals. This opens up new possibilities for LPs to capture more value, addressing one of the key issues they face— MEV via arbitrage losses due to slower price updates onchain compared to centralized exchanges like Binance.

But, is the tradeoff worth it?

Composability plays a huge role in supporting uninformed flow, according to Alex. If we move to an ASS model, the loss of this flow could be highly detrimental to LPs. This flow is retail trades that aren’t driven by arbitrage and often represent a key revenue source for LPs. Alex argues that maintaining this composability while lowering LVR is critical for the future of DeFi liquidity.

However, Yuki managed to explain how builder commitments and shared sequencing also open up a new design space for sequencing.

This was a highly technical podcast and a really really good primer for all things ASS, LVR, MEV and more.

Stick around as we break down the technical aspects and what they mean for the future of onchain liquidity, where builders deploy their applications, and a ton more.

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