Flaws with Withdrawal and possible solutions

[kleros]

Flaws with Withdrawal and possible solutions

[greenlucid]

right now flash withdrawals are allowed on the contract level, in order to avoid people from engaging with these shenanigans. It just requires accepting the big burn (dispute burn)
flash withdrawals could be removed, but i need to reconsider

[greenlucid]

Flash Withdrawal was removed. It cleared bytecode, and there's a design reason for it's removal.
With Flash Withdrawal, snipers could guarantee a maximum loss of burnRate if they manage to frontrun the challenge reveal.
Without it, and in the current design, snipers need to fight:

• Regular frontrunning war. All the following info and expenses are futile if sniper cannot get their challenge reveal to process first when it matters.
• Prepare challenge commits. Commits can be revealed within a period, so, if there's no revealed challenge to snipe within this period, the commit can solve in three different ways:
  • If they get revoked (like, timed out) they endure a burnRate.
  • If they get revealed and are successful, regular burnRate applies.
  • If they get revealed and fail, all repeatable conditions for making challenge reveals fail, will trigger a smallBurnRate.
  • If they get revealed and fail due to a non-repeatable condition, a full refund is issued, but those should only happen accidentally.
• Many commits would be needed to guarantee being able to frontrun a reveal, which will turn this strategy unfeasible long term. This means there are also continuous gas expenses to prepare commits, replicate conditions to make the reveals fail before they timeout.
• Finally, MEV bribing expenses may need to be taken into account, in order to get the frontrun to succeed when it needs to.