According to @AveryChing, @rex1fernando, @gvamsip, @xosmig, and @XiangZhuolun presented the first integration of encrypted mempools with a high-performance BFT protocol using next-gen batch encryption to block front-running and sandwich MEV on exchanges, enabling fair-order trading engines. Source: X post by @AveryChing on Nov 8, 2025. He adds that retail orders on apps like Robinhood often route to market makers such as Citadel via payment for order flow, and CEX users cannot verify whether exchanges front-run or reorder transactions, underscoring the fairness gap this tech aims to fix. Source: X post by @AveryChing on Nov 8, 2025. He states MEV-protective tech like this will become standard, indicating a roadmap for exchanges to adopt encrypted mempool and BFT-based ordering to protect traders from MEV extraction. Source: X post by @AveryChing on Nov 8, 2025.

According to the source, recent research on batched threshold encryption outlines decrypting an entire transaction batch with a single compact proof to cut verification and bandwidth overhead for encrypted mempools on Ethereum L2s. Source: IETF BLS Signature draft on aggregate proofs; Shutter Network technical docs on threshold decryption for mempools Encrypted mempools are designed to mitigate frontrunning and sandwich MEV by hiding transaction contents until after ordering, historically improving on-chain execution quality and slippage for traders. Source: Shutter Network docs on anti-frontrunning; Flashbots SUAVE overview on private orderflow and MEV mitigation Fair-ordering sequencers on L2s, such as Espresso Systems’ Timeboost design, target MEV reduction at the ordering layer and can complement private or encrypted orderflow. Source: Espresso Systems blog on the Espresso Sequencer and Timeboost For trading, wider adoption of encrypted or fair-ordering mempools at the sequencer level is expected to tighten effective spreads on DEX swaps and reduce adverse selection for large orders on ETH-based rollups. Source: Flashbots research on MEV costs to traders; COW Protocol analyses of sandwich attack losses

According to the source, threshold encryption keeps transaction payloads encrypted until ordering, reducing exploitable mempool visibility that enables frontrunning and sandwich attacks on Ethereum (source: Shutter Network documentation; Daian et al., Flash Boys 2.0, 2019). Shutter is a pioneer of threshold-encrypted order flow for Ethereum/Gnosis, aiming to mitigate MEV without changing user UX (source: Shutter Network documentation). Lower public mempool visibility can reduce extractable value per block and thus validator tip-based rewards, which currently include MEV via MEV-Boost across a large share of Ethereum blocks (source: Ethereum Foundation staking economics; Flashbots MEV-Boost adoption data, 2023). For execution quality, routing swaps through threshold-encrypted or protected orderflow reduces sandwich risk and slippage versus public mempool submission (source: Shutter Network documentation; Flashbots Protect RPC documentation). Traders should monitor realized validator rewards and staking APR for ETH and liquid staking tokens as MEV-related tips are a component of staking yields (source: Ethereum Foundation staking documentation; Flashbots research on MEV and PBS). Finally, DEXs and wallets integrating encrypted mempools or orderflow auctions may capture more orderflow and fees as users seek MEV protection, impacting liquidity distribution and gas dynamics (source: Flashbots SUAVE research; CoW Protocol documentation on MEV-minimized orderflow).