[DRAFT][GF: Phase 1 Proposal] Front-running protection via shielded mempool for OP Stack using threshold encryption

Completion Summary of Our Grant Deliverables

Dear Optimism Collective Community,

We’re excited to share the successful completion of our grant deliverables, aimed at enhancing front-running protection for the OP Stack through an encrypted mempool. Here’s a quick rundown of what we’ve achieved:

  1. Defined Front-Running Mitigation Requirements: Precise criteria were established for OP Stack rollups to counter front-running, ensuring secure and transparent transaction processing.
  1. Conducted Economic and IT Feasibility Analysis: Comprehensive studies assessed the practicality and economic implications of integrating Shutter with the OP Stack, balancing front-running protection costs against potential loss avoidance for users.
  1. Developed Architectural Blueprint: A detailed diagram was created to visually guide the integration of Shutter within the Optimism ecosystem, ensuring clarity for all stakeholders.
  1. Educational Outreach and Demonstrations: We published an informative blog post and conducted a mock demonstration to educate and showcase the project’s progress.
  1. Prepared a Decision-Making Framework: A strategic document outlining potential trade-offs and options for future MEV mitigation was developed, aiding in decision-making for later project stages.

We recommend the OP Collective to support further integration of this module into the OP Stack. Our next steps include implementing Shutter in an OP Stack rollup, with a devnet/testnet launch anticipated soon.

We’re proud of this milestone and grateful for your support. This advancement not only enhances security in the DeFi ecosystem but also demonstrates the flexibility and modular nature of the OP Stack.

Thank you,
Shutter Team

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