Back to Explore
other

The first retail-first MEV rebate protocol Not a marketplace. Not a score. A profit-sharing primitive that gives back to

F@fariditrane
6/12/2026· 0 votes · 0 comments
84

Description

Core Insight (The Unfair Truth) Today: MEV bots extract $300M+ annually from retail traders (slippage, frontrunning, sandwiching) Retail gets nothing — despite being the source of MEV Validators keep 100% of what should be a rebate opportunity MEV-Back flips this: 60% of MEV extracted from a trade goes back to the trader who created it. How It Works (Surprisingly Simple) The Flow User swaps via MEV-Back Router (fork of Uniswap V3 router) Transaction is sent to our private mempool (not public) We run white-hat MEV bots that: Detect arbitrage opportunities Capture sandwich protection Extract backrunning value 60% of captured MEV → rebated to user in same transaction 20% → MEV-Back protocol 20% → validators who include our bundle Example User swaps 10 ETH → 20,000 USDC. Normally: frontrun + sandwich = user loses $200 to MEV. With MEV-Back: Protocol captures $180 of that $200 User receives $108 rebate (60%) User net loss: $92 instead of $200 Protocol revenue: $36 User wins. Protocol wins. Validators still win. Why This Is Worth $100M+ (Immediately) Market Need (Critical) Problem MEV-Back Solution Retail loses $300M/year to MEV Rebate 60% back No one explains MEV to users "You just got $108 back" — transparent CEXes have fee rebates (Binance, Coinbase) DEXes don't — until now MEV is invisible Make it visible + profitable for users TAM Uniswap daily volume: $1.5B Average MEV extractable: 0.3% ($4.5M/day) MEV-Back capture potential: $1M/day at scale User rebates: $600k/day Protocol revenue: $200k/day** → **$73M/year 🎯 The "Worth" Math (Concrete) Year 1 Projection (Conservative) Metric Value Daily volume (by month 12) $100M MEV capture rate 0.2% ($200k/day) Protocol revenue (20%) $40k/day → **$14.6M/year** User rebates (60%) $120k/day → **$43.8M/year** Unit Economics Per User Average user swaps $5,000/month MEV extracted: $15 User rebate: $9 User saves $108/year just for using MEV-Back router 🚀 Feasibility (82/100 — Actually Buildable) Why This Works Now (Not 2 Years Ago) Barrier (2022) Solved (2025) Private mempools = centralized Flashbots, Eden, BloxRoute exist MEV extraction difficult Open-source MEV bots (Flashbots Suite) Validator collusion Multiple independent relayers Regulatory unclear Rebates = cashback, not yield MVP in 6 Weeks ($30k) Week 1-2: Fork Uniswap V3 router + integrate Flashbots Week 3-4: Build basic MEV bot (sandwich protection + backrunning) Week 5: Private mempool via BloxRoute Week 6: Frontend (swap interface + rebate display) + audit Team: 1 Solidity dev, 1 Python/MEV dev, 1 frontend 📊 IdeaScore™ (Revised) Metric Score Justification Innovation 88 No one gives MEV back to retail — not even Flashbots Market Viability 92 Every DEX user loses to MEV. Obvious value prop. Scalability 85 More volume = more rebates = more users = more volume Feasibility 82 Existing infra (Flashbots, private mempools) makes it doable Problem–Solution Fit 95 Directly solves invisible retail tax Weighted Total 88/100 ↑ from 81 — now "highly worth building" 🔥 The Unfair Advantage Network Effect Without Bootstrapping Better than 0 fee DEXes (they give 0% rebate; you give 60%) Better than points programs (real cash, not tokens) Self-reinforcing: More volume → better MEV capture → higher rebates → more volume Defensible Moat Competitor Why They Can't Copy Uniswap Too slow to move, governance gridlock 1inch Aggregator model can't control routing Flashbots Focused on validators, not retail New entrants Need mempool access + MEV bot + router — high barrier Data Moat Learn exactly which trades generate MEV Optimize routing for maximum rebate Competitors can't replicate without your transaction flow Regulatory Advantage (Huge) Concern MEV-Back Position Securities law? Rebates = cashback (not yield) → not a security MEV legality? White-hat, transparent, user-opt-in Custody? Non-custodial (users sign, we route) Jurisdiction Operate from UAE/Singapore (friendly to MEV research) Cleaner than lending, staking,

AI Summary

MEV-Back proposes flipping the current MEV extraction model by rebating 60% of extracted MEV directly back to retail traders, aiming to solve the issue of retail users losing out on significant value. The protocol routes trades through a private mempool, extracts MEV using white-hat bots, and then redistributes the value. This creates a compelling incentive for users and a new revenue stream for validators and the protocol.

Strengths

  • •Addresses a significant and currently unaddressed pain point for retail DEX users by reclaiming value lost to MEV.
  • •The mechanism of rebating MEV directly to users creates a strong, clear value proposition and a potential network effect.
  • •Leverages existing infrastructure like Flashbots and private mempools, which simplifies initial development and increases feasibility.
  • •The business model is clear: take a percentage of extracted MEV and distribute the rest to users, attracting both traders and validators.
  • •By making MEV extraction transparent and beneficial to traders, it could legitimize MEV in the eyes of the broader crypto community.

Risks

  • •Reliance on the continued existence and effectiveness of white-hat MEV strategies, which are constantly evolving and subject to new forms of attack or mitigation.
  • •The complexity of precisely measuring and attributing MEV to individual trades for accurate rebate distribution is non-trivial and prone to disputes.
  • •Potential for regulatory scrutiny, even with the "cashback" argument, as the MEV space is still nascent and ill-defined legally in most jurisdictions.
  • •Competition from existing DEXes or aggregators who could develop similar features or integrate with other MEV protection services.
  • •Adoption challenge: convincing a critical mass of users to shift from established DEX routers to a new one, despite the rebate.

Next Steps

  • •Develop a sophisticated MEV attribution model that accurately calculates and distributes rebates to avoid user disputes and ensure fairness.
  • •Conduct a thorough legal review in target jurisdictions to solidify the "cashback, not yield" argument and proactively address potential regulatory concerns.
  • •Launch a public testnet with a clear audit trail to demonstrate transparency and build trust with early adopters and validators.
  • •Forge strategic partnerships with validators and major DEX aggregators to increase transaction flow and network effect.
  • •Implement a robust monitoring and security framework to protect against malicious MEV attacks and ensure the integrity of the private mempool and bot operations.