Coinbase Cloud integrates MEV-Boost, allowing ETH stakers to earn MEV profits
Coinbase Cloud has now integrated MEV (Miner Extractable Value) research institution Flashbots' product MEV-Boost. Users who stake Ethereum through Coinbase services can automatically receive additional rewards.
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What is MEV-Boost?
MEV-Boost is a free and open-source middleware that utilizes PBS (Proposer/Builder Separation) mechanism to prevent external block builders from stealing MEV.
The concept involves merging the roles of block builder (Builder) and block proposer (Proposer) into a role called validator, which is then assigned to different roles within the network. This creates a competitive environment for block builders to acquire profitable blocks and communicate with proposers (validators) through relays.
The aim is to enhance the security and decentralization of Ethereum by allowing validators of all sizes to earn MEV rewards included in the PBS mechanism, rather than concentrating them in the hands of a few large validators. MEV-Boost does not directly involve validators in MEV but improves the way validators participate in MEV.
MEV-Boost provides validators with a daily amount of ETH through transparency:
Coinbase stated that they will continue to operate a certain number of validator nodes without MEV-Boost to maintain block diversity, uphold Ethereum's decentralization, and Coinbase's neutral stance.