Paper 2025/2126

Decentralized Proposer-as-a-Service (DPaaS): Improving Decentralization and Trustworthiness in Ethereum PBS

Abstract

Proposer-Builder Separation (PBS) in Ethereum aims to improve decentralization and scalability by offloading block construction to specialized builders, but its current MEV-Boost implementation relies on trusted relays, introducing centralization as well as security and performance concerns. We propose Decentralized Proposer-as-a-Service (DPaaS) to eliminate relays while preserving compatibility with Ethereum’s consensus layer by distributing the combined proposer and relay roles across Proposer Entities (PEs) running in independent Trusted Execution Environments (TEEs). DPaaS presents itself to Ethereum as a single validator using threshold BLS signatures, while a new Byzantine broadcast protocol decentralizes the auctioneer role with censorship-resistance and availability-backed guarantees. Our evaluation, deployed across four independent cloud hosts and driven by real-world traces, shows that DPaaS achieves $\leq 6$ ms bid processing latency, $68.7$ ms latency from the end of auction to block proposal, and $3.3\%$ more MEV earnings – demonstrating that DPaaS can offer security, decentralization, and trustworthiness benefits while providing strong performance.