We present V0LVER, an AMM protocol which solves an incentivization trilemma between users, passive liquidity providers, and block producers. V0LVER enables users and passive liquidity providers to interact without paying MEV or incurring uncontrolled loss-versus-rebalancing to the block producer. V0LVER is an AMM protocol built on an encrypted transaction mempool, where transactions are decrypted after being allocated liquidity by the AMM. V0LVER ensures this liquidity, given some external market price, is provided at that price in expectancy. This is done by providing just enough loss-versus-rebalancing profits to the block producer, incentivizing the block producer to move the pool price to the external market price. With this, users transact in expectancy at the external market price in exchange for a fee, with AMMs providing liquidity in expectancy at the external market price. Under block producer and liquidity provider competition, all of the fees in V0LVER approach zero. Without block producer arbitrage, V0LVER guarantees fall back to those of an AMM capable of processing encrypted transactions, free from loss-versus-rebalancing or user-level MEV.

翻译：我们提出V0LVER协议，这是一种解决用户、被动流动性提供者和区块生产者之间激励三难困境的自做市商机制。V0LVER使用户和被动流动性提供者能够在无需支付矿工可提取价值（MEV）或承担不受控的再平衡损失的情况下与区块生产者进行交互。该协议基于加密交易内存池构建，交易在由AMM分配流动性后被解密。V0LVER确保在给定外部市场价格的条件下，该流动性以预期价格提供。具体而言，通过向区块生产者提供恰好足以补偿再平衡损失的利润，激励其将池内价格调整至外部市场价格。由此，用户得以按外部市场预期价格进行交易并支付手续费，而AMM则按外部市场预期价格提供流动性。在区块生产者与流动性提供者竞争下，V0LVER中的所有手续费趋近于零。若不存在区块生产者套利，V0LVER的保障机制将退化为能够处理加密交易的AMM基础功能，彻底消除再平衡损失或用户级MEV。