Mev Tax Hook
Taxing Arb bot so that LPs can get the extra income for dealing with the Loss.
Demo
About
Passive LPs bleed to arbitrage. Every time the real price moves on a faster venue, the first bot to trade against the stale pool price keeps the difference (loss versus rebalancing). Since UNIfication, LPs also hand part of their fee income to a UNI burn. Paradigm's "Priority Is All You Need" showed that on a chain with strict priority ordering, a bot racing to be first must bid roughly the value of the opportunity as its priority fee, so the bid is an honest signal of extracted MEV. Unichain's Flashblocks made that ordering provable in 2025. I built the hook that reads that bid and hands the money back to the LPs it was taken from.
How it's made
It moves the arbitrage value from the sequencer to the LPs without shrinking it or touching retail. On 33 hours of real ETH/USDC minute prices replayed through the actual hook and PoolManager, the same $162 of arbitrage value left the pool either way; without the hook 95% of it was priority fees to the sequencer, with the hook 86% was donated to LPs, LP income rose 11.8%, and 0 of 399 retail swaps were taxed. Unique execution: the tax is charged through a beforeSwapReturnDelta and donated through PoolManager.donate in the same call, so the credit and debit cancel inside the flash- accounting lock and the contract has no ERC20 code at all. It cannot hold funds, so it cannot lose them, and donations sit outside the protocol fee switch so all of it reaches LPs. No oracle, no AVS, no FHE, no second chain. Six additions harden it: a clamped rolling-average exemption, absolute caps, an immutable hard ceiling, a price-impact surcharge, a backrun rebate and a PFDA coexistence discount. Live on Unichain Sepolia with a frontend where anyone can send the same swap as four bidders and watch the tax land with the LPs.