ABSTRACT

Decentralized finance (DeFi) stresses base-layer blockchains with high throughput, privacy, and fairness requirements that legacy account-based networks struggle to meet. We propose a zero-knowledge (ZK) rollup architecture that (i) scales execution and settlement via succinct validity proofs and (ii) reduces maximal extractable value (MEV) through a MEV-resilient ordering layer that combines proposer–builder separation (PBS), frequent batch auctions (FBA), and commit-reveal randomness. The rollup batches DeFi transactions (AMM swaps, transfers, liquidations) into circuits verified with modern proof systems (PLONK/Halo2 or STARKs) and posts proofs and commitments to L1. On the sequencer side, order flow is privately pooled; batches are cleared in discrete intervals using solver competition and randomized tie-breaking to neutralize latency races and sandwiching. In an agent-based simulation calibrated to public DeFi traces, the design achieves 12–18× throughput over L1 baselines, 60–80% MEV loss reduction (basis-points of traded value), 2–5× lower confirmation latency, and significant on-chain linkability reductions for private transfers, while keeping L1 verification costs bounded by succinct proof verification and (optionally) blob-based data availability. We discuss trade-offs among proof systems (setup, recursion, prover time), auction liquidity, and censorship resistance under PBS. The evaluation suggests that ZK rollups plus MEV-aware consensus can deliver scalable, private, and more economically fair DeFi, pending production-grade data availability and censorship-resistance safeguards.