What Happens During An Execution Preconfirmation?

Learn about what happens behind the scenes during an execution preconfirmation.

Let’s say you’re a searcher or solver looking to execute a complex mev strategy on Ethereum involving multiple DeFi protocols.

Problem

Currently, when you send a transaction bundle:

• You define your maximum slippage tolerance for each trade (eg. 1%)
• You broadcast your bundle to one or more block builders.
• You wait about 12 seconds (1 block) or more for it to be included.

During this time, you have no guarantee that:

• Your entire bundle will be included in the next block.
• The transactions won’t revert due to changing conditions.
• Other mev actors won’t push your transaction toward your slippage limit

As a result of these factors:

• You might miss your target prices.
• You might pay gas for failed transactions.
• Your bundle may not get included, which is especially problematic for single-shot opportunities in DeFi. Some arbitrage opportunities only exist for a very brief window, and missing this window means losing the entire opportunity.

Using an Execution Preconfirmation

Instead of blindly sending your transaction, you can use an execution preconf. Here’s how:

1. Setting up your mev-commit bidder node

   • Follow the Quickstart guide to set up your mev-commit bidder node and fund your account.
2. Prepare your transaction

   • Identify your mev opportunity. Craft your bundle and send the signed transaction to block builders as per usual.
3. Submit a preconf bid

   • Create and submit a bid for the transaction from your mev-commit bidder node (following the bid structure here), supplying the hash of the transaction you just sent.
   • When you submit a bid, it goes to multiple providers by default.
   • If a provider accepts your bid, it will generate a cryptographic commitment to execute your transaction. These are typically sent in milliseconds.
   • Your bidder node automatically verifies each commitment it receives.
   • Aim to receive commitments from all registered providers. If you don’t, consider increasing your bid amount to make it more attractive to all providers.
4. Execution

   • Your transaction is now guaranteed to be executed as per the preconf terms for that provider (or else that provider will be slashed).
   • The transaction will execute in the specified block.

Benefits

• Real-time confirmation of future execution, translating to reduced risk for transacting
• Ability to secure a specific execution slot at a better price
• Even in the event of being frontrun, your transaction parameters will remain within your defined slippage, or else not execute
• Instant transaction UX for searchers
• Predictable gas costs

By using a preconf, you’ve eliminated the uncertainty of the 12-second wait, secured your execution parameters, and protected yourself against potential mev exploitation, all in real-time.

Unlike simple inclusion preconfirmations (which might still result in reverted transactions), execution preconfs ensure your bundle executes as intended. This leaderless, multi-provider approach offers superior guarantees that improve your chances to capture time-sensitive mev opportunities.

Assistant

Responses are generated using AI and may contain mistakes.