The recent surge in Decentralized Finance (DeFi) activities led to the emergence of strategic manipulation techniques on blockchain networks to capture profits, known as Maximal Extractable Value (MEV). Due to financial incentives around it, MEV has been thoroughly studied on blockchains through formal and empirical analysis. Although formal analysis works already tackle the issue of blockchain composability and value that can be extracted through interactions on multiple networks, the empirical studies so far mainly focused on the value that can be extracted on a single network in an atomic fashion. This research initiative aims to establish a methodology for detecting cross-domain value extraction activity and, through historical data analysis, observe adopted pricing strategies and generate a valuation model for cross-domain transaction bundles that optimizes cross- domain MEV extraction. The outcome of this work will lead to a greater understanding of MEV extraction processes in cross-domain settings, further providing optimizations for this extraction.
This initiative will contribute the following: