MEV Penalty Guardrail (RPIP-58)

RPIP-58 introduces a limit on the total number of MEV penalties that the oDAO can apply to minipools in one week.

Outcome If Vote Passes

The pDAO asks the development team to include RPIP-58 in the next major smart contract release.

Rationale

Currently, the oDAO can apply an unlimited number of penalties without any delay. This exposes node operators to unnecessary risk. In the worst case, a compromised oDAO can penalize 100% of the ETH that node operators have in minipools. For legitimate use of the penalty system, this is overpowered. This proposal aims to reduce oDAO trust by introducing a sensible limit that doesn’t interfere with legitimate use of the penalty system and minimizes impact from illegitimate use.

Context

• RPIP-58
• RPIP-58 Discussion Thread
• RPIP-58 Discussion Thread - Sentiment Poll