Title:

The Market Microstructure of PBS (Video recording)

Abstract:

Ethereum is currently the second-largest blockchain by market cap, and the largest in terms of decentralized finance activity. Block production on Ethereum currently uses what is called proposer builder separation (PBS): a proposer sells the right to produce the next block to entities known as block builders, who bid in an open-outcry English action. Join us to hear Professor Mallesh Pai discuss the various effects of blocks being produced this way and its implications in DeFi among other primary uses of the chain.

Bio:

Mallesh Pai is the Lay Family Associate Professor in the Department of Economics at Rice University and Principal Researcher at the Special Mechanisms Group at Consensys. His research areas are game theory and mechanism design, with applications to the design and analysis of incentives in blockchain protocols and DeFi.