Excited to see this one out. When an EVM is composable with an orderbook, this gives AMMs a new set of eyes that they didn't have before. CEX-DEX arbitrage is a massive source of value leakage from AMMs. My back-of-the-envelope calculations suggest that this could be ~$2B per year across DeFi. Through precompiles, nest AVR pools will be able to read a reference price from the orderbook within each block to estimate how much arbitrage value is available to each swap. This is especially relevant for HYPE pools, which generate the most volume on nest. Higher yields will make providing liquidity to blue-chip nest pools more attractive, giving the AMM a chance to work in symphony with the orderbook. That captured value is 100% shared with Hyperliquid users. Parameters will be optimised over time, but it's clear that this lever can generate significant fee performance during volatile events. Good to have in an industry whose assets are highly volatile. Some people approach this problem with offchain or external systems (fair enough), or with propAMMs (not DeFi). Hyperliquid gave us the opportunity to try something unique that is fully onchain. nest has a new source of value capture that can deliver significantly more rewards for LPs and voters. It's also my first contribution to nest on the smart contract side, so I'm especially eager to see this live!

A new nest on @Enter_Elysium