Quick take:
- The Bitcoin analytics startup says its product will enable miners to organise transactions better.
- The company believes that new protocols like Ordinals and Runes will particularly find its product useful because Bitcoin does not natively support smart contracts.
- MEV or maximum extractable value is an ordering process that helps miners earn the highest fees possible from transactions.
Rebar Network, a Bitcoin-based analytics software startup has raised $2.9 million in a seed round led by 6th Man Ventures. The fundraising also attracted participation from ParaFi Capital, Arca, Moonrock Capital, and UTXO Management.
The Remote Procedure Calls startup will use the funds to accelerate the development of its MEV tools on Bitcoin. This comes as new protocols like Ordinals and Runes continue to emerge as gateways for building the Bitcoin ecosystem.
Rebar CEO Alex Luce commented: “Bitcoin is entering a new era of programmability and increased trading activity. Our mission is to develop infrastructure and products that help the Bitcoin community (users, miners, and developers) navigate the emerging MEV landscape on Bitcoin, ensuring a more equitable and transparent ecosystem.”
MEV or maximum extractable value is an ordering process that helps miners earn the highest fees possible from transactions. Because the Bitcoin blockchain does not natively support smart contracts, Rebar sees an opportunity for MEV protocols amid the potential of Bitcoin’s dApp ecosystem.
“Rebar recognizes that MEV (Maximum Extractable Value) strategies are emerging on Bitcoin, similar to those seen in DeFi on Ethereum,” Rebar wrote in a press release. “The company recognizes both the challenges and opportunities presented by MEV, aiming to develop solutions that balance network efficiency with user protection and equitable value distribution across the Bitcoin ecosystem.”
Some of the various ways MEV protocols can be used to maximise earnings include opening two different orders on either side of an open order (sandwiching) and arbitraging transactions (where a miner replaces a pending order with their own to lock in a better price).
Commenting on his firm’s leading role in the fundraising, Carl Vogel of 6th Man Ventures said in a statement: “We believe Rebar is at the forefront of a crucial development in the Bitcoin ecosystem. Their focus on MEV and its related infrastructure will be vital as Bitcoin continues to evolve and attract more diverse activities on-chain.”
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