Merkle Private Pool is a way for your wallet to monetize its transactions. It is an alternative destination for signed transactions that extracts value from your transactions and protects them from front-running attacks (known as sandwiches).
Here are a few advantages to sending transaction to the Private Pool:
MEV Extraction: The private pool extracts MEV and returns 90% of it back to the sender. This is a great way to generate revenue for wallets, and get cashback for users. See the flow-chart below on how the private pool extracts backrun MEV using a sophisticated auction mechanism that preserves privacy.
Faster inclusion: Instead of waiting for transaction to be discovered in the public pool, our private pool forwards your transactions directly to major builders. This is like skipping the line and putting your transactions front and centre for them to be included in the next block in most cases.
Transaction API: Our transaction API provides detailed status reports on transactions sent to the private pool. See Transaction API Docs.
Sandwich protection: Transactions sent the public pool are subject to front-running and sandwiches, responsible for millions of dollars lost per week. In the private pool, all transactions are protected against sandwiches and front-running in general.
Dashboard: Merkle provides a Developer Dashboard of all your transactions, allowing you to track in detail the status of any transaction and your overall revenue via MEV extraction.
Compliance: Merkle automatically blocks any non-compliant transaction. In addition, you can opt-in to extracting MEV only from compliant bidders, making you compliant with US regulations effortlessly.
Flow of transactions
Ethereum: All features are supported on Ethereum.
Sepolia: All features are supported on Sepolia. Sepolia is the main testnet of Ethereum, it can be used to send test transactions to the pool without using real ETH.
Polygon (Coming July 25th): Polygon is slowly adopting MEV infrastructure and as such, we are only able to extract MEV on 25% of transactions. MEV protection is not 100% guaranteed, we use a delay approach to MEV protection on Polygon, by releasing the transaction as close to the next block as possible, leaving very little time for searchers to attack the transaction.
Binance Smart Chain (Coming August 5th): Similarly to Polygon, BSC is adopting MEV infrastructure. At this time, we are only able to extract MEV on ~30% of transactions. MEV protection is not 100% guaranteed, we use a delay approach to MEV protection on Binance Smart Chain, by releasing the transaction as close to the next block as possible, leaving very little time for searchers to attack the transaction.