From 75ccd0448393639dffc7403606ecd829485a8f4a Mon Sep 17 00:00:00 2001 From: Moody Salem Date: Wed, 7 Oct 2026 22:01:40 -0400 Subject: [PATCH] docs: disclose how MEV capture fees are credited (EKU-964) --- src/content/docs/concepts/extensions.md | 4 ++++ src/content/docs/products/liquidity.md | 2 +- 2 files changed, 5 insertions(+), 1 deletion(-) diff --git a/src/content/docs/concepts/extensions.md b/src/content/docs/concepts/extensions.md index ae18c24..537c8c1 100644 --- a/src/content/docs/concepts/extensions.md +++ b/src/content/docs/concepts/extensions.md @@ -76,6 +76,10 @@ These extensions are already built and deployed. Each one is a pool type you can | **[Ve33](/products/ve33/)** | EVM | Token-governed liquidity: stakers vote to direct emissions and set pool fees, and earn the fees of the pools they support | | **[Signed exclusive swaps](/integration-guides/signed-exclusive-swaps/)** | EVM | RFQ-style pools where a controller signs each swap off-chain with its own fee and bounds | +### How MEV capture fees are credited + +MEV capture holds its additional fee in the pool and credits it to liquidity providers at the first interaction with the pool in a later block timestamp. On chains with sub-second blocks, several blocks can share one timestamp. The credit goes to the liquidity that is active at the pool price at that moment, not to the liquidity the surcharged swap traded through. Positions added in the same block timestamp after a surcharged swap share in that swap's additional fee, and positions removed in that timestamp do not. If the price was left in a range with no liquidity, that amount is not credited to anyone. A position near the edge of the active range can therefore receive more or less than its share of a given swap's additional fee, in some cases all of it or none of it. Ekubo estimates that from June 2025 to October 2026 this affected about 0.15% of the additional fees paid out, with no sign of deliberate exploitation. That is a historical estimate, not a limit. Deployed MEV capture extensions cannot be changed, so this applies to every existing MEV capture pool. + Source code: [EVM extensions](https://github.com/EkuboProtocol/evm-contracts/tree/v3.2.0/src/extensions) and [Starknet extensions](https://github.com/EkuboProtocol/starknet-contracts/tree/v5.0.3/src/extensions). For how this design compares to Uniswap v4 hooks — and why the `forward` primitive replaces v4's custom-accounting machinery — see [Extensions vs. Uniswap v4 hooks on the Ekubo Blog](https://blog.ekubo.org/ekubo-extensions-vs-uniswap-v4-hooks/). diff --git a/src/content/docs/products/liquidity.md b/src/content/docs/products/liquidity.md index b8d6538..32ee3e6 100644 --- a/src/content/docs/products/liquidity.md +++ b/src/content/docs/products/liquidity.md @@ -34,7 +34,7 @@ Core itself charges nothing — see [Protocol architecture](/concepts/architectu Extensions attach behavior to a pool without moving liquidity out of Core: - **TWAMM** — pools that back [DCA orders](/user-guides/dollar-cost-average-orders/). Providing liquidity here earns fees from order flow that executes against the pool when buy and sell orders are imbalanced, in addition to ordinary swap volume. -- **MEV capture** — charges extra on price-moving swaps and returns that value to LPs instead of searchers. +- **MEV capture** — charges extra on price-moving swaps and returns that value to LPs instead of searchers. MEV capture fees are credited at the pool's next interaction in a later block timestamp; see [How MEV capture fees are credited](/concepts/extensions/#how-mev-capture-fees-are-credited). - **Boosted fees** — lets anyone fund additional fee rewards for a pool's LPs, on top of swap fees. Used for targeted liquidity campaigns. - **[Ve33](/products/ve33/)** — replaces swap-fee income with emissions of a stake token, with voters directing where those emissions go and setting each pool's fee. LPs earn emissions; voters earn the swap fees. - **Oracle** — records price history for a token against native ETH on EVM (a configured quote token on Starknet). Oracle pools are full-range and fee-free by design.