Rebar plans to launch Bitcoin MEV Shield by late 2024

Rebar Labs is working to launch the first Bitcoin-native (CRYPTO:BTC) Maximum Extractable Value (MEV) Shield by the end of 2024, according to CEO Alex Luce.

The Shield aims to protect traders on Bitcoin’s decentralised exchanges (DEXs) from harmful MEV practices, such as front-running, which have become more frequent in the Bitcoin ecosystem.

In an interview, Luce explained that MEV is an emerging risk for Bitcoin traders, particularly with the growth of layer-2 (L2) solutions and DEXs on the network.

"Right now, if we’re talking about MEV, the most obvious example on Bitcoin is front-running," Luce stated.

Rebar’s Shield would function similarly to Ethereum’s Flashbots, which has safeguarded over $43 billion worth of DEX transactions from MEV since 2021.

Rebar's Shield is designed to enhance the interoperability of Bitcoin's fragmented DEX ecosystem and improve trade execution.

It also aims to boost returns for Bitcoin miners, who process transactions and secure the blockchain.

“We’re speaking with all the large miners in the space right now,” Luce noted, aiming to launch with a substantial portion of the Bitcoin network’s hashrate.

Bitcoin's decentralised finance (DeFi) sector remains in its early stages, with daily trading volumes currently limited to the millions.

Luce believes the space is still in a "very early beta" phase, but anticipates more widespread use in the coming years.

"The target user today is very different than the target user we’re hoping for in 12 or 24 months from now," he added.

Meanwhile, Bitcoin's L2 networks, such as Rootstock, Stacks, and Babylon, are gaining traction, with around $2 billion in total value locked as of October 2024.

Luce emphasised the importance of strong trade execution on Bitcoin, stating, “If you can’t get good execution on Bitcoin in the next 12 months, chances are you’re going to move to an L2.”

At the time of writing, the Bitcoin price was $69,108.13.