Odaily: Aptos announced on X that the encrypted mempool is now live on the Aptos mainnet. Users can opt in on a per-transaction basis, keeping pending transactions encrypted until the block they are in is finalized. The functions being called and their input parameters remain private until execution, though the sender and gas fees are still visible, thereby reducing the risk of MEV attacks. This feature is designed for institutions, traders, and AI agents, helping prevent large orders from exposing trading intent before execution.

Odaily reports that Aptos governance proposal 206 is currently under voting, aiming to enable ChunkyDKG V1 full mode and the encrypted_transactions feature. This mechanism will support encrypted transactions through distributed key generation, hiding transaction contents before they enter consensus ordering, after which validators collaboratively decrypt them, helping to reduce front-running and MEV risks. Voting on the proposal will end on October 6, with approval votes currently accounting for nearly 100%, but voter turnout stands at 2.69%, which has not yet met the 24.8% quorum requirement.

Odaily reports that the cross-chain execution protocol Relay team has disclosed that its API interface previously had a vulnerability that leaked pending order information before transaction execution, causing MEV searchers to exploit the relevant routing state to carry out sandwich attacks.This attack involved approximately 5,600 users, with attackers profiting about $136,000 and the median user loss at about $11.88. Relay has paid a $50,000 bug bounty to the security team Outputlayer, which discovered the vulnerability, and plans to fully compensate affected users with approximately $312,000. The compensation requires no user application and will be automatically sent to the corresponding wallet addresses.

Odaily News: Aerodrome's Slipstream V3 has gone live, introducing protocol-level internal MEV auctions to its concentrated liquidity AMM. The upgrade redistributes value captured by sandwich bots and arbitrageurs to active liquidity providers and sAERO holders, with the protocol expected to generate tens of millions of dollars in related revenue. This version also introduces dynamic fees that automatically increase when market volatility intensifies, and retains Uniswap V3's concentrated liquidity design, achieving capital efficiency up to 4,000 times that of traditional AMMs. Aero plans to merge Aerodrome on Base and Velodrome on Optimism into a single AERO token, and to launch on Ethereum mainnet in Q2 2026. Aero Lite has already launched Slipstream pools on Circle's Arc, and Dromos Labs is developing pool-level fee rebates and KYC options for institutional clients.

Odaily Report: The attacker, through a public keeper multicall, introduced a custom Uni V4 LP Safe module into a hook-enabled liquidity pool they created, after which the hook unwrapped aEthrsETH into rsETH, and Yoink MEV extracted it within the block. Two transactions have been confirmed to have caused approximately $7.73 million in rsETH losses.

Odaily reports that Wang Chun posted on X platform stating that Oleksii Trofimchuk filed a lawsuit against Lido Finance and Stakefish on September 8 in the Santa Clara County Superior Court, alleging that after his wallet was compromised, competitive MEV bots claimed ETH by submitting high-priority-fee transactions.Wang Chun stated that as a validator, Stakefish merely packages legitimate transactions according to Ethereum protocol rules, and cannot and should not adjudicate off-chain ownership or competing asset claims. He warned that requiring protocol-compliant validators to claw back rewards based on off-chain claims would force validators to filter transactions based on ownership claims they cannot independently verify, exposing staking rewards to legal uncertainty and undermining Ethereum's decentralization and credible neutrality.

Odaily News: 1inch has announced its integration with HyperEVM, the EVM network under Hyperliquid, now available across 1inch DApp, 1inch Wallet, Aqua, and all APIs. Users can perform gas-free token swaps with built-in MEV protection on HyperEVM through intent-based trading, and swap directly from other public chains to HyperEVM assets via 1inch cross-chain swap, eliminating the need for traditional cross-chain bridges.

Odaily Planet Daily News: Arbitrum Co-founder Steven Goldfeder stated that the industry should not fall into the "narrative trap" of simply comparing on-chain transaction prices. He noted that both Arbitrum One and Robinhood Chain actively guard against harmful MEV such as front-running, and that some chains marketing low fees actually impose higher MEV costs, with retail users potentially bearing additional losses through "hidden costs" like front-running and sandwich attacks.Solana Co-founder Toly responded that Arbitrum currently has wider bid-ask spreads and higher fees, and that even the cost equivalent to a 10% revenue share on fees alone already exceeds sandwich trading rates — with worse spreads factored in, he estimates total costs are roughly 10 times higher. Toly further argued that a model driven by a single sequencer pursuing shareholder profit maximization can never defeat permissionless market competition.

Odaily News: The sandwich attack bot operated by JaredfromSubway.eth has extracted a cumulative total of 117,007 ETH since March 2023, worth approximately $295 million at current prices. In June 2026, an anonymous attacker deployed 66 counterfeit token contracts, exploiting the bot's automated trading logic to steal at least $7.5 million in ETH and stablecoins, and funneled the funds into Tornado Cash. The stolen assets have not yet been recovered.Sandwich attacks are a form of Maximal Extractable Value (MEV): the bot monitors large transactions in Ethereum's public mempool, buys ahead of the target transaction, and sells after the transaction pushes the price up, capturing profits from the spread. The bot's primary contract had received a cumulative total of 117,007 ETH as of August 28.MEV-Boost block construction is centralized among a small group of participants, with relay.ultrasound.money, Titan Relay, and bloXroute regulated relays collectively forwarding approximately 85% to 88% of related blocks within a 24-hour window; Titan's builder independently assembled 50.3% of the blocks. Monthly sandwich attack extraction amounts have declined from approximately $10 million in late 2024 to roughly $2.5 million in October 2025. (Bitcoin.com News)

Odaily News - Hyperliquid Policy Center announced that it has recently submitted a joint comment letter with Douro Labs to the U.S. Securities and Exchange Commission (SEC), supporting the SEC's proposal to rescind Rule 611 of Regulation NMS (the "Trade-Through Rule") and calling on regulators to establish a clearer Best Execution regulatory framework for on-chain markets.The Hyperliquid Policy Center believes that the current Trade-Through Rule is built on traditional securities market structures and is clearly incompatible with blockchain-native trading models. HPC and Douro Labs put forward three recommendations in their joint comment letter:First, they support the SEC in rescinding the Trade-Through Rule. The two companies argue that this rule relies on a traditional quote system that cannot accurately reflect the on-chain trading environment, and its continued application could hinder the development of on-chain financial markets.Second, the SEC should establish clear best execution guidance for on-chain trading. On-chain markets feature new factors that do not exist in traditional markets, such as quote-less trading, 24/7 operation, blockchain network fees, and MEV (Maximal Extractable Value). Brokers need clearer regulatory standards to ensure they can execute trades on behalf of clients.Third, the regulatory framework should be principles-based and recognize independent price reference mechanisms. HPC and Douro Labs suggest that when the traditional NBBO cannot cover on-chain markets, the SEC should recognize independent price reference data formed through transparent, manipulation-resistant mechanisms. For example, the Pyth Network, which Douro Labs helped build, provides price oracle services for on-chain markets by aggregating real-time data supplied by exchanges and market participants.