Mainz, Germany, June 19th, 2024,
Chainwire
Shutter, an open-source protocol initially
developed by brainbot and focused on
preventing malicious maximal extractable value (MEV) attacks, today
announced the launch of a new anti-front running solution using
mempool encryption to combat the exploitation of nearly US$900 million
taken from crypto trades annually. Partnering with Gnosis, the architects of the fully EVM-compatible
Layer-1 Gnosis Chain, Shutter will be integrated into the Gnosis
Chain to protect end-user transactions from front running and
sandwich attacks, shielding traders from malicious MEV activities
that can result in significant monetary loss and unfair
influence.
Setting a New Standard for MEV
Protection with Deep Chain Integration
MEV attacks are transactions by
attackers that manipulate the outcome of the target transaction
within a blockchain that maximizes financial gain for malicious
actors at the expense of traders and end-users. Common malicious
MEV activities include sandwich attacks, where an attacker places
their transactions both before and after a victim's transaction.
This manipulates the token price to the attacker’s advantage,
typically driving up the price of the token for the victim.
Despite the growing incidences of such
attacks, existing solutions to this problem often fall short of
holistically addressing the complexities of MEV attacks. Many
traders still remain unaware that they are victims of exploitation
until significant losses are incurred. Even once they are made
aware, victims have to take extra steps to protect themselves,
often relying on centralized systems that can still censor and
extract value.
To address this gap, Shutter provides
malicious MEV protection and a layer of censorship resistance via
the threshold encrypted mempool built into the Gnosis Chain.
Distinguishing itself from existing methods of tackling MEV
attacks, Shutter integrates its encryption protocol directly into
blockchain networks, preventing manipulators from exploiting
transactions. This deep integration means block producers must
commit to the inclusion and order of transactions while they are
still encrypted, making it almost impossible to front run or
censor. This also ensures that traders are protected from monetary
losses without needing additional measures.
Tackling Unchecked Spread of
Malicious MEV Attacks with Decentralized Encryption for Fair
Trading
Shutter’s unique approach is
exceptionally critical in today’s maturing Web3 landscape where
hundreds of millions of
dollars are stolen each year on Ethereum alone through MEV
tactics. These attacks exploit the public nature of blockchains and
remain largely unchecked, consequently reducing market efficiency,
diminishing trust in the system, and making it fundamentally
unfair.
Shutter's encrypted mempool also
mitigates real-time censorship, ensuring transactions remain
private until included in a block. This prevents malicious actors
from selectively excluding transactions, reinforcing the core
principles of public blockchains—openness, neutrality, and
accessibility. By increasing information symmetry through Shutter’s
encryption approach, the playing field is leveled. At the same
time, the integrity of public blockchains is preserved, providing
greater confidence for retail and large institutional investors
typically deterred by rampant front running in decentralized
finance (DeFi) to enter the space, attracting a broader range of
participants in the long run.
A Strategic
Integration
Gnosis Chain’s integration of Shutter
directly tackles the rampant issue of malicious MEV through
preventive measures as opposed to many other blockchains that
continue to struggle to resolve such growing issues, marking a
significant milestone for not just the Shutter community, but the
industry at large. Charting towards the shared vision of a more
equitable blockchain ecosystem, Gnosis Chain’s relentless focus on
decentralization and accessibility harmonizes with Shutter’s
efforts to address contemporary industry challenges impeding the
adoption of Web3. Ultimately, Shutter will play a vital role in
encouraging safer crypto trades, increasing censorship resistance,
and preventing value leakage.
A Vision for the
Future
This integration is one of many in the
pipeline for Shutter that helps build momentum toward combating
malicious MEV attacks across the Ethereum ecosystem. Collectively,
Shutter and its partners will shield the users from manipulation,
ensuring equitable access and maintaining a neutral base
layer.
Luis Bezzenberger, Product Manager at
brainbot said: “We’re incredibly excited to unveil a
protocol that can solve one of the most rampant issues in today’s
decentralized finance landscape. Gnosis Chain is home to one of the
most vibrant communities in Web3 and by joining forces, we can
strengthen the Web3 ecosystem and provide Gnosis Chain’s users with
a seamless, fair and more profitable trading
experience.”
Philippe Schommers, Head of Infrastructure at
Gnosis said: “We’re thrilled to join Shutter’s mission of
building a Web3 ecosystem that is transparent, equal, and secure
for all. Integrating Shutter, we believe we are empowered to
provide the best user experience for our developers and builders
and we are dedicated to continuing demonstrating our sustained
ecosystem growth through robust integrations and partnerships with
promising protocols, dApps, and projects.”
Martin Köppelmann, Co-Founder of
Gnosis said: “Security and fairness remain at the core of
everything we do. The integration with Shutter not only bolsters
our network resilience and neutrality but will also set an industry
gold standard for fortifying safeguards against third-party value
extraction from network users, leveling the playing field for the
future of Web3 and decentralized finance.”
Shutter will be launched on July 11,
2024 on the final day of the Ethereum Community Conference (EthCC),
the largest annual European Ethereum event focused on technology
and community.
About Shutter
Shutter is a free
open-source software designed to protect the crypto community from
those manipulating the blockchain for their own gain. Using
threshold encryption, Shutter ensures base layer neutrality,
information symmetry, and accessibility in trading, voting, and
gaming.
About brainbot
brainbot GmbH specializes
in the development, distribution, licensing, and operation of
software, alongside providing a wide range of related services. As
the core developer behind Shutter, brainbot plays a pivotal role in
advancing blockchain technology.
About Gnosis
Gnosis is developed by a
world-class team of leading forces in blockchain and payments. The
Gnosis Chain is architected with community ownership, resilience,
and credible neutrality at its core. The highly decentralized
network is secured by 200K+ validators and 2K+ nodes, across 70
countries and 5 continents.
Contact
Wachsman
shutter@wachsman.com