Recently, Puffer Finance, a liquidity re staking protocol active in EigenLayer, has launched a solution called Based Rollups, attempting to introduce ETH mainnet validators to provide Rollups with a more secure and efficient decentralized solution, especially the decentralization of sorters. As a classic LST protocol, being able to combine its own characteristics (while supporting ETH mainnet PoS and Eigenlayer restaking) to provide new technical solutions is a good narrative extension. The decentralization of the sorter is the core concern of the community, which is almost the weakest point of the Rollups system and can directly affect the user experience. Based Rollups attempts to outsource sorting to Layer 1 for decentralized sorting, which not only reduces the risk of current Rollups sorters being too centralized, but also significantly reduces transaction costs and improves system activity. Developers can easily deploy and manage their Rollups chains based on the Based Rollups architecture, just like deploying smart contracts, and enjoy the security and decentralized features of Ethereum. The current issue with Rollups is that ZK or OP Rollups rely on a centralized sorter to determine the order of transactions. This centralization brings risks, including sorter failures and reduced user trust, as well as the resulting MEV issues. To mitigate these risks, many Rollups offer 'escape pods', a mechanism that allows users to exit Rollups in the event of a sorter failure, but this increases latency and gas costs, and may result in malicious sorting and extraction of MEVs. We urgently need a Rollups with a decentralized sorter. The introduction of Based Rollups refers to Rollups whose transaction order is determined by L1, proposed by Justin Drake, a researcher at the Ethereum Foundation, in March 2023. Base Rollups achieves decentralized sorting by utilizing L1 proPoSER to determine transaction order. This method not only inherits the activity and decentralization of L1, but also eliminates the need for escape pods, thereby enhancing the safety and efficiency of Rollups. The working principle of Base Rollups is that in Base Rollups, L1 proPoS can collaborate with L1 searchers and L1 builders to include Rollups blocks in the next L1 block without permission. That is to say, the order of the L2 blocks included and the final order of transactions are determined by the L1 proPoSe. However, generally speaking, L1 proPoSes do not construct L2 blocks on their own. On the contrary, each Based Rollups block is built by L2 builders. That is to say, it will not increase the workload of L1 proPoSe. Taiko is a Based Rollups, where the VM and Rollups execution agent act as the execution layer to execute transactions off chain. Starting from the consensus layer, the transaction order is determined by the Ethereum consensus layer, and transaction data is also published on Ethereum. Ultimately, the transaction status can be verified on Ethereum. The advantages of Based Rollups inherit L1 anti censorship and enhance transaction activity: As Based Rollups are operated by Ethereum L1 proPoSER and validator nodes, they inherit Ethereum's anti censorship and therefore do not require an escape pod. This ensures the activity of transactions and avoids transaction delays and unfairness caused by escape pods. Reduce transaction costs: Transactions based on escape pods typically incur additional gas expenses, reducing the activity of traditional Rollups. Based Rollups transactions do not require additional gas fees and do not require verification of the signature of the centralized sorter. They do not require escape pods or external PoS consensus, further reducing costs. Inheriting L1 decentralization, the system is simpler and more secure: Based Rollups only executes the transaction layer off chain, and the consensus layer, data visibility layer, and verification layer for sorting transactions are all on L1. This reuses L1's searchers builders proPoSe architecture, making the Based Rollups system very simple, without the need for sequencer signature verification, escape pods, or external PoS consensus. L1 searchers and block builders are incentivized to include Rollups blocks in their L1 bundles and L1 blocks to extract Rollups MEVs, further enhancing the security of L1. By default, Based Rollups will have little negative impact on L1 stakers, with the only effect being an increase in revenue as most MEVs flow to L1. Flexible token governance: Even though sorting is delegated to L1, Based Rollups can still have governance tokens to charge basic fees. Of course, tokenization can also be achieved as its correctness and fairness are guaranteed by Ethereum. The challenge faced by Based Rollups is that MEV revenue is forced to decrease. MEV is a large part of traditional Rollups revenue, but most of Based Rollups' MEV flows to L1 proPoSe, which sacrifices the MEV revenue of Based RollupsThe option to generate revenue from L2 congestion fees (such as EIP-1559 style L2 basic fees) is still retained. However, Base Rollups hoping to capture their MEV may have some bribery mechanisms, such as including an auction mechanism in the L1 contract, such as the Dutch auction, forcing batch submitters to pay some ETH to the contract. The flexibility of sorting is limited, and pre confirmations cannot be achieved. Although Based Rollups have advantages in many aspects, they also face some challenges, especially those related to soft confirmations. Soft confirmation refers to the ability of users to reliably know that their transactions will successfully reach Ethereum Layer 1 (L1). Currently, Rollups provides pre confirmations, allowing users to know that their transactions will definitely be submitted to L1. However, delegating sorting to L1 by Based Rollups reduces sorting flexibility, making it impossible for it to achieve Pre confirmations and Arbitrarum style First come First served (FCFS) sorting. Justin Drake proposed using re staking to address the issue of pre confirmations in the summer of 2023. Design using re staking, where a portion of L1 proPoSes submit (via re staking) to include the Based Rollups block in their future proposed L1 blocks. Since L1 proPoSe knows at least 32 blocks in advance, it is possible to designate who is the proPoSe for which block. Puffer Finance aims to integrate pre confirmation with Base Rollups through its UniFi architecture, providing fast (100 millisecond) confirmation time while maintaining all the advantages of Base Rollups. The pre confirmation mechanism ensures that transactions are submitted to L1. Pre confirmations ensure that the decentralized sorter can effectively submit transactions to L1. Ethereum validators queue up to propose blocks. If the pre confirmer fails to fulfill their commitment, they will face penalties such as reduced margin to ensure higher reliability. This mechanism gives users more confidence that their transactions will indeed be included in Ethereum L1 state. A quick confirmation of 100ms is crucial for applications like GameFi to ensure a fast response time (e.g., approximately 100 milliseconds) through soft confirmations. However, due to decentralization, the sorters of Based Rollups follow a block generation time of 12 seconds, resulting in a minimum confirmation time of 12 seconds, which makes it difficult for soft confirmations to respond quickly. Puffer's UniFi integrates Pre confirmations with Based Rollups, which can provide a user experience comparable to a centralized sorter, offering a confirmation time of 100 milliseconds and ensuring its activity. This integration allows Based Rollup to retain all its original advantages, ultimately solving the problem of Ethereum liquidity fragmentation and promoting a more unified and efficient Rollup ecosystem. The architecture of UniFi enables it to quickly scale from a single centralized sorter to tens of thousands of decentralized sorters by utilizing Puffer's validator nodes. UniFi hopes to seamlessly integrate pre confirmation into its Based Rollup. Users submit Rollup transactions, which are then processed by Puffer validators. These validators provide pre confirmation to ensure that users know that their transactions will be included in the Ethereum L1 state. Puffer validators will re pledge based on additional reduction conditions to ensure reliability, receive Rollup transactions from users, and issue pre confirmations. These validators are preparing to include Rollup transactions in the L1 block. The Preconf Slasher AVS mechanism imposes additional reduction conditions on validators to suppress behavior that violates preconfirmed commitments and prevent validators from not submitting certain Rollup transactions to L1. Puffer validators propose blocks to Ethereum L1, which include the order of pre confirmed Rollup. The Puffer sorter contract accepts Rollup transactions. The PufETH Vault collects congestion and contention fees generated by Rollup transactions, which can increase the earnings of PufETH holders and be returned to UniFi users through native earnings. UniETH, which can reduce market risks, is a universal gas token in the UniFi ecosystem. It generates rewards through pufETH and is managed by a decentralized autonomous organization (DAO) to avoid market risks such as loan clearing caused by Ethereum price fluctuations, while Puffer's anti deduction mechanism can prevent these risks. Gas free transaction scenario In Web2, users are used to free Internet services subsidized through advertising. In web3, users need to pay for services, which may hinder their use. Puffer's Based Rollup users can earn income by locking assets in the Rollup native bridge, generating native rates of return. This enables Puffer to support application scenarios such as transactions that do not require gas fees, which has a significant impact on both web2 and web3If the transaction fees of a dApp on the Rollups chain become very high, developers may choose to leave the Rollups chain and create their own exclusive chain, which can directly benefit from user transaction fees. Puffer provides developers with the solution of Based dApp Chain. Developers can launch a Puffer based dApp chain as easily as deploying smart contracts, inheriting the security and decentralization features of Ethereum. Developers can obtain transaction fees from the dApp's Rollups chain without the need to operate a centralized sorter, and can achieve cross chain transactions and interactions. Users can quickly confirm transactions on Puffer's Based dApp chain within 100 milliseconds, and Puffer's Pre confirmations ensure that transactions are submitted to L1. Conclusion: Through collaboration with the Ethereum Foundation, Puffer Finance is providing Rollups with a more secure and efficient solution. This decentralized sorting method not only reduces the risk of current centralized sorters, but also significantly reduces transaction costs and enhances system activity. With the integration of pre confirmation mechanism and 100 millisecond fast confirmation time, Base Rollups will become an ideal choice for various applications including GameFi, ensuring user experience while ensuring the finality of transactions. In addition, based on Puffer Finance's Based dApp chain, developers can easily deploy and manage their own Rollups chain without worrying about the operation of centralized sorters, and enjoy the security and decentralized features of Ethereum