Model: Pool Centralization From MEV

Yes, pools have these advantages:

  • all block producers have a network latency advantage over other builders, and pools are the biggest block producers
  • pools have big economies of scale when paying for hardware and low latency feeds to other layers/chains/CEXs (same as HFT hedgies)
  • pools have the funds for research and development

Most MEV will be cross layer/chains/CEXs where latency makes a big difference.

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