- A Bitcoin analytics firm called Rebar has raised $2.9 million in initial money for its MEV products that are based on Bitcoin.
- In order to aid miners in more effectively organizing transactions, the startup is creating a substitute for the public mempool.
- Despite Bitcoin’s lack of native support for smart contracts, other protocols like Ordinals and Runes have opened up MEV potential.
Rebar, a business that develops analytics software for Bitcoin, revealed on Thursday that it has raised $2.9 million in seed money to develop what it calls the first-ever Bitcoin-based MEV product. 6th Man Ventures led the investment, and Arca, Moonrock Capital, ParaFi Capital, and UTXO Management also participated.
The method of ranking transactions in order to receive larger fees is known as MEV, or maximal extractible value.
According to a press release, Rebar has seen that MEV (Maximum Extractable Value) methods are starting to appear on Bitcoin and are comparable to those observed in DeFi on Ethereum.
The company is aware of the opportunities and problems that MEV presents, and it is working to provide solutions that strike a balance between user protection, network efficiency, and fair value distribution within the Bitcoin ecosystem.
The business is specifically creating a better transaction organization system for miners as an alternative to the public mempool. Since the Bitcoin blockchain does not handle smart contacts natively, new protocols like Ordinals and Runes have opened up potential for MEV on Bitcoin that did not exist before.
According to an explainer published by the Bitcoin startup River Financial, miners have more opportunity to produce MEV by taking advantage of the inefficiencies brought about by increased transaction complexity.
Frontrunning, sandwiching, and arbitraging transactions—in which a miner substitutes their own buy order for a user’s in order to lock in a better price—are instances of MEV.
We think Rebar is leading the way in an important evolution inside the Bitcoin ecosystem. Carl Vogel of 6th Man Ventures stated that as Bitcoin develops and draws more varied activity on-chain, their focus on MEV and the infrastructure that supports it will become increasingly important.
According to Rebar CEO Alex Luce, Bitcoin is about to enter a new era of programmability and increasing trading activity. Our goal is to create tools and infrastructure that will assist the Bitcoin community, including miners, consumers, and developers, in navigating the platform’s evolving MEV landscape and assuring a more transparent and egalitarian ecosystem.
Rebar intends to provide data products and dashboards in addition to the private mempools that are now in place on chains like Ethereum to protect data from front-running MEV bots by not broadcasting it to the entire network.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
