The blockchain industry has experienced remarkable growth in recent years, transforming from a niche interest to a trillion-dollar market. With an increasing number of institutions participating in activities such as investment and product launches, one vital role they have been exploring is that of block validation. Validators are essential for establishing consensus within blockchain networks and maintaining their security by allowing valid transactions to be processed and reducing the risk of attacks.
While Bitcoin relies on proof-of-work mining for block validation, staking has become the prevalent method for consensus in other blockchain networks. Institutions can earn returns by acting as validators in the staking process, receiving newly issued tokens and transaction fees. Yet, there is an opportunity for even greater returns by tapping into a new field called Maximum Extractable Value (MEV).
Foundry, one of the few players offering staking services to institutional clients, ensures maximum returns for their staking activities by tapping into MEV. MEV allows validators to optimize their returns while providing profit opportunities to other entities, such as decentralized exchange (DEX) arbitrage or quick liquidations in the DeFi ecosystem. This ultimately benefits the broader blockchain marketplace by generating more liquid pricing.
MEV is not an entirely new concept, with trading platform Robinhood generating 80% of its revenue by selling order flow to institutional market makers like Citadel Securities. Similarly, validators maximize their rewards by selecting the most profitable transactions to build a block. Foundry’s staking service ensures that institutions use the most reliable technology to optimize MEV earning potential, utilizing technologies like MEV Boost and MEV Flashbots software to access private relays and maximize MEV earnings.
The MEV landscape is rapidly evolving with upcoming changes in Ethereum and the broader DeFi ecosystem that will impact MEV. Foundry commits to leading these transformations to ensure long-term competitive rewards for their staking clients. Their tech team constantly monitors the MEV landscape for potential optimizations and prepares for potential changes that could alter the nature of MEV.
Backed by the Digital Currency Group, Foundry offers an unparalleled level of security and profitability to staking clients. Their rigorous staking service with round-the-clock monitoring ensures smooth service for validators. As the ideal digital asset staking partner for custodians, exchanges, banks, liquid staking providers, funds, and other institutional players, Foundry is poised for institutions eager to participate in or offer staking services.
Source: Blockworks
