FastLane was founded in March of 2022 to provide an auction system that allows validators a chance to earn rewards without the need to spam the blockchain. FastLane Labs has developed a protocol that is easy to integrate. The protocol has since been introduced on the Polygon blockchain with the main aim of rewarding validators for protecting the health of the network.
FastLane offers an MEV(Maximum Extractable Value) protocol for Polygon. MEV infrastructure allows validators to earn more money while ordering transactions into the blocks on a blockchain. This method of earning is controversial since it varies a bit depending on the blockchain network. Its controversy stems from the fact that it is common for traders to focus on a high volume of attempts or spamming to maximize their profit potential.
FastLane has recently concluded its seed funding round that yielded $ 2.30 million in funds. The financing round was led by Multicoin Capital – a crypto-focused investment firm. Other participants in this round include Polygon Ventures, Shima Capital, Delphi Ventures, Everstake Ventures, a41 Ventures and Symbolic Capital.
The polygon reward system allows its validators to earn their tips in the native MATIC token from traders who are competing for specific positions in the blocks. The auctions happen off-chain and externally to minimize redundant transactions on the network.
What makes FastLane stand out from other Polygon MEV protocols is its utility in allowing validators to use their Polygon clients to participate rather than downloading a new proprietary client.
Validators earn revenue from arbitrageurs, liquidators and NFT traders among others when algorithmic traders or searchers bid in an auction for FastLane access during their sprints. The winning searchers then enjoy a greater likelihood of successful trades without ever having a direct connection to the validators’ nodes.
The protocol is beneficial in that it is incredibly easy to integrate, replacing randomness in deciding winners of arbitrage opportunities during sprints with monetization and standardizing transaction propagation therefore, potentially leading to lower data costs for validators’ sentry nodes.
The Fastlane protocol is also ecosystem focused as frontrunning transactions and ‘sandwich’ attacks are not facilitated by the protocol. The firm’s onboarding process includes approval of validators by contacting the Fastlane team to attain participation privileges and integrating FastLane with its sentry patch before approved participants can start earning revenue.
