Jito (@jito_sol): BAM, ACE & the Future of Internet Capital Markets 𝘟 𝘚𝘱𝘢𝘤𝘦 𝘚𝘶𝘮𝘮𝘢𝘳𝘺 📑

BAM, ACE & the Future of Internet Capital Markets 𝘟 𝘚𝘱𝘢𝘤𝘦 𝘚𝘶𝘮𝘮𝘢𝘳𝘺 📑 𝗛𝗼𝘀𝘁: @maxekaplan 𝗚𝘂𝗲𝘀𝘁: @buffalu__ 𝗪𝗵𝗮𝘁 𝗶𝘀 𝗕𝗔𝗠 💥 • open-source system improving transaction supply chain on Solana • making block building faster, transparent, and decentralized • manifesting "Internet Capital Markets" on Solana • @solstrategies was the first team to run BAM 🎉 • currently sitting ~5.5% network stake weight 𝗪𝗵𝗮𝘁 𝗕𝗔𝗠 𝗦𝗼𝗹𝘃𝗲𝘀 🛠️ • current state -> yield chasing game which harms execution quality • the Dark Forest -> by providing privacy AND transparency via TEEs • trust -> TEEs allow users to get cryptographic proof of the code • fragmentation -> transaction supply chain is fragmented with misaligned incentives between users, apps, and validators 𝗔𝗽𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗖𝗼𝗻𝘁𝗿𝗼𝗹𝗹𝗲𝗱 𝗘𝘅𝗲𝗰𝘂𝘁𝗶𝗼𝗻 (𝗔𝗖𝗘) 🏎️ • ACE enables apps to control how their txs are ordered/sequenced • maker-taker priority windows (10ms advantage for LPs/market makers) • essential for Solana in order to compete with app-chains • ensures critical transactions, such as liquidations, to execute first to keep protocols solvent 𝗪𝗵𝗮𝘁 𝗔𝗖𝗘 𝗨𝗻𝗹𝗼𝗰𝗸𝘀 🔓️ • tighter spreads, deeper liquidity, and better prices for users • more predictable outcomes for market makers • healthier Solana execution environment • maker/cancel priority for order books • prioritizing oracle price updates • L2-like sequencing without L2s • "but it won’t fix everything" 𝗕𝗔𝗠 𝘃𝘀. 𝗠𝗖𝗟 ⏳ • native protocol upgrades like MCL are likely 18-24 months away • BAM is a client-side upgrade that is available TODAY • acts as bridge to fix market structure w/out waiting for protocol changes • can run alongside MCL when it eventually ships 𝗪𝗵𝘆 𝗩𝗮𝗹𝗶𝗱𝗮𝘁𝗼𝗿𝘀 𝗦𝗵𝗼𝘂𝗹𝗱 𝗥𝘂𝗻 𝗜𝘁 🏗️ • generates more revenue • aligns validators with what apps actually need • creates the most transparent & verifiable market via TEEs • BAM currently has 82 validators running it 𝗗𝗘𝗫 > 𝗖𝗘𝗫 📈 • the goal is for DEX volume to surpass CEX volume • crypto-native assets launch onchain first, giving DEXs the price discovery edge • macro tailwinds are bringing traditional financial assets onchain • "The best place to buy SOL is on Solana, and that’s the only chain where that’s true.” 𝗕𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝗳𝗼𝗿 𝗦𝗼𝗹𝗮𝗻𝗮'𝘀 𝗻𝗲𝘅𝘁 𝗽𝗵𝗮𝘀𝗲 𝗼𝗳 𝗴𝗿𝗼𝘄𝘁𝗵. 𝗟𝗶𝘀𝘁𝗲𝗻 𝗯𝗮𝗰𝗸 𝘁𝗼 𝘁𝗵𝗲 𝗫 𝗦𝗽𝗮𝗰𝗲 𝘄𝗶𝘁𝗵 𝗦𝗢𝗟 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀! 𝗟𝗶𝗻𝗸 𝗯𝗲𝗹𝗼𝘄 👇️