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).

According to the source, research indicates MEV remains persistent, with around $300K lost to sandwich attacks in the last month (source: X post dated Oct 2, 2025). According to the source, threshold encryption protects orderflow by encrypting the mempool until block inclusion and splitting decryption keys across a committee so even block proposers cannot view contents (source: X post dated Oct 2, 2025). According to the source, Shutter pioneered this approach, evolving from per-epoch to per-transaction encryption, and it is now live on Gnosis Chain via its RPC endpoint (source: X post dated Oct 2, 2025). According to the source, a critical flaw was revealed whereby reconstructing an epoch key made all transactions public, including those not yet included in a block (source: X post dated Oct 2, 2025). Based on the source, traders active on Gnosis Chain should monitor DEX slippage, sandwich attack incidents, and RPC route selection, as execution quality may depend on adoption of per-transaction encryption and avoidance of configurations affected by the epoch-key exposure (source: X post dated Oct 2, 2025).