How Does a Private Mempool Service Earn Revenue?
A private mempool service, such as a Flashbots relay, primarily earns revenue by acting as an intermediary between searchers and validators. Searchers submit profitable bundles to the relay, which then forwards them to the validator.
The searcher's bid (or "bribe") for block inclusion is split between the relay and the validator. The relay's share is its service fee for providing the private, low-latency communication channel and the MEV-optimization service.
Glossar
Private Mempool
Propagation ⎊ The private mempool represents a localized, unconfirmed transaction pool maintained by individual nodes within a cryptocurrency network, distinct from the globally broadcasted public mempool.
Private Mempool Service
Architecture ⎊ A private mempool service, within the context of cryptocurrency derivatives, represents a distinct layer in the transaction propagation process, operating outside the standard public mempool.
Revenue
Yield ⎊ Revenue within cryptocurrency, options trading, and financial derivatives represents the economic gain derived from deployed capital, factoring in both explicit payouts and implicit benefits like optionality value.