Solving L2 economic challenges and Ethereum’s biggest complexity: MEV

What we’re doing

At Radius, we spend a lot of time thinking about Ethereum’s biggest challenges to make it a better place for users and chains alike. In the past, we’ve built solutions to keep transaction ordering fair because we’ve seen how harmful practices like frontrunning or sandwich attacks can add extra costs and push users away from Ethereum. Our efforts have made L2s safer and more reliable for users.

Now, we’re moving forward, helping L2s capture MEV in a fair and sustainable way to keep the ecosystem growing strong.

The challenges L2s face

Right now, one of the biggest challenges standing in the way of L2s is sustaining their growth with transaction fees as their main revenue source. These fees swing widely with network activity and market conditions, leaving L2s on unsteady financial ground.

This creates a serious issue: L2s can’t rely on fees for consistent revenue, and users lose trust due to unfair and costly experiences. To strengthen Ethereum, we need solutions that deliver stable income for L2s and a safer, more reliable experience for users.

Secure Block Building (SBB)

Secure Block Building (SBB) is our solution to help L2s capture MEV effectively and fairly. By connecting L2s with searchers, SBB enables L2s to profit from MEV through backrunning, a method where profitable transactions are executed after user transactions. This creates a stable revenue stream that supports L2s without interfering with user activities.

How SBB works

Searchers find arbitrage opportunities, such as price discrepancies or liquidations, within each new L2 block. They send these transactions to the L2 sequencer, which includes and executes them after user transactions (this is known as backrunning). Meanwhile, user transactions are encrypted until included, preventing manipulation through harmful practices like frontrunning or sandwich attacks.

Learn about the different types of MEV in our documentation.

Building a stronger Ethereum

With SBB, we’re laying the groundwork for our broader vision for cross-rollup arbitrage, enabling L2s to profit across chains. For this to work smoothly, L2s must execute searcher transactions correctly, and SBB provides the security foundation to do this. This sets the stage for our next step, Lighthouse, to scale these opportunities across Ethereum.

Lighthouse is a decentralized network that coordinates cross-rollup arbitrage opportunities across Ethereum. It acts as a communication hub, connecting searchers to arbitrage opportunities across L2s, L1, and even centralized exchanges, to bring in more revenue for L2s and maximizing profits.

With tools like SBB and Lighthouse, we’re turning MEV into a positive force, creating sustainable economics for L2s and a more trusted Ethereum. We’re excited to keep tackling Ethereum’s biggest challenges and improving L2 economic models, so Ethereum remains the blockchain for innovation.

Join Us

• Contact us to learn how SBB can support your L2

• Explore our Documentation

• Check out Symbiotic’s Network Highlight: Radius Secure Block Building (SBB)