LayerZero Researchers Propose OTTER AMM to Improve MEV Resistance

LayerZero researchers, together with Oblivious Labs and Carnegie Mellon University researchers, have published a paper introducing OTTER, a new automated market maker mechanism designed to improve resistance to maximal extractable value. According to ChainCatcher, OTTER uses a batch clearing mechanism similar to a VCG auction to make truthful reporting of valuations and budgets a dominant strategy for traders. The paper says the design also reduces block builders' ability to profit from transaction ordering, sandwich attacks, or inserting fake bids.