A research paper from LayerZero's research team, Oblivious Labs, and Carnegie Mellon University introduces OTTER, a novel automated market maker designed to resist maximal extractable value (MEV). OTTER uses a VCG-like batch auction mechanism that incentivizes truthful bidding and limits block builders' ability to profit from transaction ordering, sandwich attacks, or fake bids.
In a joint research paper, LayerZero’s research team, working with Oblivious Labs and researchers from Carnegie Mellon University, proposed a new automated market maker (AMM) mechanism called OTTER. The idea is simple: make it harder for maximal extractable value (MEV) to win.
OTTER uses a batch clearing mechanism in the style of VCG auctions. That setup makes honest reporting the dominant strategy for traders when they state their valuations and budgets. And it cuts into block builders’ ability to make money from transaction ordering, sandwich attacks, or slipping in fake bids.
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