🌊INTRODUCTION
Shio - The MEV Protocol on Sui
Last updated
Shio - The MEV Protocol on Sui
Last updated
In the rapidly evolving world of DeFi, every trade that users execute can be influenced by hidden forces like Maximal Extractable Value (MEV), which can quietly divert value from transactions. Shio is designed to protect users and protocols from losing value to MEV strategies, such as Loss-versus-Rebalancing and Sandwich attacks, while ensuring that market efficiencies benefit users directly.
Prior to Shio's launch, MEV searchers have been active on Sui, capturing significant value away from the ecosystem. Recent data shows that MEV arbitrage profits average around $18,000 per day—amounting to over $6 million per year—that is extracted from the Sui community. As Sui continues its rapid growth, this value will continue to increase.
As the first MEV protection solution in the Sui ecosystem, Shio is dedicated to capturing this value and redirecting it back to the community.
In pursuit of this mission, Shio has partnered with leading DeFi projects on the Sui blockchain to enhance the DeFi experience for all users.
Maximal Extractable Value (MEV) refers to the profit that can be captured by strategically ordering, censoring, or inserting transactions within a blockchain. Common MEV strategies include arbitrage, sandwiching, and liquidation.
Our focus is to:
Protect against MEV within the Sui ecosystem.
Illuminate the MEV "dark forest" on Sui, democratizing access for a broader set of searchers.
Expose dishonest behaviors in the ecosystem and improve transparency.
Boosts DeFi Market Efficiency: Shio protects traders and liquidity providers by redistributing value back to the Sui ecosystem.
Fair and Transparent MEV Access: Shio democratizes MEV, providing opportunities for a broader pool of searchers, rather than concentrating profits among searchers with infrastructure advantages (where winners are not always the ones that produce the best rebate to the ecosystem).
Cheating Prevention: Shio adds visibility to prevent dishonest activities, such as validators or RPC providers sandwiching user transactions.
The Shio team proposed and implemented SIP-19, which introduces "soft bundle primitives". These primitives allow transactions to be grouped and ordered without directly interfering with the Sui consensus mechanism. SIP-19 has now been deployed across the Sui ecosystem.
