LayerZero introduces the anti-MEV automated market maker mechanism OTTER

The LayerZero research team, in collaboration with Oblivious Labs and researchers from Carnegie Mellon University, has published a paper introducing OTTER, a novel automated market maker mechanism designed to enhance resilience against maximum extractable value (MEV). OTTER employs a batch clearing mechanism modeled after Vickrey-Clarke-Groves (VCG) auctions, making truthful reporting of valuations and budgets a dominant strategy for traders, while diminishing block builders' ability to profit from transaction ordering, sandwich attacks, or injecting false bids.