Lucas Bruder: From Engineering to Crypto Innovation

Lucas Bruder, the founder and CEO of Jito Labs, brings a wealth of experience to the world of blockchain and cryptocurrency. Growing up in St. Louis, Missouri, Bruder's journey into the tech world began at Carnegie Mellon University, where he studied computer engineering. His academic path was complemented by a brief stint as a collegiate swimmer, which he later traded for fraternity life to better balance his studies.

Bruder's professional career started in embedded systems engineering, a field that bridges the gap between the physical and software worlds. This experience provided him with a unique perspective on how technology interacts with the real world, a skill that would prove invaluable in his future endeavors.

Tesla Internship: Pioneering Automotive Technology

One of the highlights of Bruder's early career was his internship at Tesla, where he worked on the Model X just before its release. This opportunity allowed him to contribute to groundbreaking features that would define the vehicle's uniqueness in the market. Bruder recalls:

"I was like programming some of those features. So it worked a lot on the, um, worked a lot in the seats in particular. So like moving seats forward and backwards. Um, worked on like the tailgate a little bit, did a little bit of stuff on the falcon wing doors as well."

His work extended to the front doors, where he helped implement the automatic opening feature using ultrasonic sensors. This experience at Tesla exposed Bruder to the cutting edge of automotive technology and the challenges of bringing innovative features to market.

Revolutionizing Construction with Robotics

After Tesla, Bruder's career took an exciting turn into the world of construction robotics. At Built Robotics, he was part of a small team tackling the labor shortage in construction by automating repetitive tasks. Bruder's role involved adapting heavy machinery for autonomous operation:

"Went to, uh, basically one day, like a 60,000 pound bulldozer showed up at the office. It's like, all right. You have like two weeks to like figure out, can we like actually like control this thing with the computer?"

This challenge required Bruder to reverse-engineer the bulldozer's control systems, figuring out how to simulate human inputs and trick the machine into accepting computer control. The project culminated in successfully automating the grading of house foundations, showcasing the potential of robotics in construction.

The Transition to Cryptocurrency

Bruder's journey into the cryptocurrency space was driven by a growing interest in blockchain technology. He had been following the industry as an investor and observer for some time before deciding to dive in professionally. The discovery of MEV (Miner Extractable Value) became a pivotal moment, leading him down a rabbit hole that would eventually result in the creation of Jito Labs.

Understanding Liquid Staking

Liquid staking is a concept that has gained significant traction in the cryptocurrency world, particularly on networks like Solana. Bruder provides a comprehensive explanation of how liquid staking works and its benefits:

"Basically with liquid staking, you can kind of, um, you can stake your Solana and you get a liquid form of it in a liquid staking token. Some, some people call it receipt token and basically, uh, what's going on behind the scenes is you are interacting with a stake pool."

This process allows users to stake their Solana tokens while still maintaining liquidity. The user receives a liquid staking token (LST) in return, which represents their staked position. This LST can then be used in various DeFi applications, enabling users to earn staking rewards while still participating in other financial activities on the network.

The Importance of Staking for Solana

Staking plays a crucial role in securing and maintaining the Solana network. Bruder emphasizes the significance of staking:

"Staking is super important for the network. It helps secure the network and it's, um, let me think of like an example here. Um, so yeah, I guess like, uh, you know, the popping up of like restaking and eigen layer, there's a lot of talks about using Ethereum security and, uh, using staked ether, um, in the form of actually the, uh, staked ETH or liquid staking tokens to secure networks."

By staking their tokens, users contribute to the network's security and consensus mechanism. The more tokens staked, the more secure the network becomes, making it more resistant to attacks or malicious activities.

Jito's Role in the Solana Ecosystem

Jito Labs has become deeply integrated with Solana across various sectors. The company's contributions include the Jito Solana validator client, which currently accounts for approximately 60% of the network's stake weight. This significant presence underscores Jito's commitment to enhancing Solana's performance and reliability.

Bruder explains Jito's core mission:

"GEDO labs builds high performance MEV infrastructure to help Solana scale and, um, high performance MEV infrastructure that should be a given, like, um, Solana's area, high performance chain and MEV is, uh, playing an increasingly important role in Solana and also other networks like Ethereum and, uh, Polygon, BSC, all the other networks and the scale parts important too."

This focus on MEV (Maximum Extractable Value) infrastructure is crucial for Solana's scalability and efficiency, especially as the network continues to grow and attract more users and developers.

The Recent Solana Network Outage

During the podcast, Bruder discusses a recent network outage that affected Solana. He provides insights into how such situations are handled and the steps taken to resolve them:

"I woke up at like 330. My phone was ringing. I was like, what the heck? Um, looked at Slack is like, oh, like network TPS is low. And then I was like, okay, that's, that's like weird. I haven't seen that one in like, I guess like 11 months and however many days Mert probably knows."

Bruder describes the process of diagnosing the issue, coordinating with other developers and validators, and implementing a fix. He notes that while outages are not ideal, the Solana community has become more efficient at handling them, with this particular incident being resolved relatively quickly.

The Future of MEV on Solana

Looking ahead, Bruder shares his thoughts on the future of MEV on Solana:

"I guess just like continuing to know the thing that we're starting to do is we're going to do a little bit of a thing to think about is like, what does the next stage of MEV look like on Solana? I think current systems like proven out that, you know, it works pretty well. There's definitely room for improvement."

He mentions the potential for more detailed bundle metrics and statistics, which could provide valuable insights into network activity and help optimize MEV strategies.

Solana's Evolution and Jito's Role

Bruder envisions Solana continuing to focus on network reliability, performance improvements, and attracting more developers. He highlights the importance of fee market adjustments and the potential for dynamic base fees to more accurately price block space.

Regarding Jito's role in this evolution, Bruder sees the company continuing to innovate in MEV infrastructure and contributing to Solana's overall performance and scalability.

Advice for New Builders on Solana

For those looking to build on Solana, Bruder offers several pieces of advice:

1. Stay focused and avoid spreading resources too thin.
2. Find a niche and excel in it.
3. Ship MVPs (Minimum Viable Products) quickly and iterate based on feedback.
4. Utilize tools like Anchor for efficient development.
5. Consider unique use cases that leverage Solana's strengths, such as cheap compute and high throughput.

The Long-Term Outlook for Solana

When asked about the long-term prospects of Solana, Bruder expresses optimism:

"I think they'll be able to use it. I think, uh, there's a lot of networks popping up that I think won't necessarily be here. I think Solana has attracted, um, a culture that I don't think it's, uh, I hate, you know, I'll probably get shit for this, but like it's not as cultured as Ethereum. Um, it's just newer. It's not, it hasn't been around as long, but I think there's nothing else that comes in between Ethereum and Solana."

He believes that Solana's engineering-focused approach, combined with its growing ecosystem and developer community, positions it well for long-term success in the blockchain space.

The Importance of Multiple Clients

Bruder discusses the significance of having multiple client implementations for the Solana network, such as the upcoming Firedancer client:

"I think on a long enough time horizon, Firedancer will certainly help make the network more resilient. But, um, in the short term, it will probably be pretty rocky in that like, if you have 60% of the network running one client, 40% running the other, then like in like the 40% one goes down, then the network kind of stops, stops finalizing."

This diversity in client implementations can enhance network resilience and security, although it may introduce some short-term challenges as the ecosystem adapts.

Jito's Focus on System Reliability

Bruder highlights the improvements Jito has made in system reliability:

"I was looking at pager duty like a month ago and the amount of like alerts that we've gotten from our system going down have massively decreased. So making the block engine more resilient has been huge thing now."

This focus on reliability is crucial as the volume of activity on Solana continues to grow, with more traders and arbitrageurs leveraging the network's capabilities.

The Challenges of High-Volume MEV Processing

With the increasing activity on Solana, Jito faces new challenges in processing MEV-related transactions:

"Um, but yeah, I mean now like the system's getting like 800 bundles every second and there's like hundreds to like thousands of searchers sending bundles in like we're trying to simulate everything to figure out what can make it, what's going to pay the most and what doesn't."

This high volume of activity requires continuous optimization and innovation to ensure efficient processing and maintain the network's performance.

Solana's Unique Position in the Blockchain Ecosystem

Bruder emphasizes Solana's unique position in the blockchain landscape:

"I think there's a lot of really good applications that are built that you can compose with. And you kind of get the network effects. If you build good apps, you can kind of get the network effect of those other users where like, if you're like, if you're building on optimism or like some L2, you need to attract the users from other L2s because they need to get funds on there."

This network effect, combined with Solana's high performance and low transaction costs, makes it an attractive platform for developers and users alike.

The Importance of Efficient Code on Solana

While Solana's abundant and cheap compute resources are a significant advantage, Bruder still emphasizes the importance of writing efficient code:

"Hopefully people do start to do that soon. I'm not saying, you know, write an efficient code, but I'm saying like, you don't have to worry about optimizing every single operation that happens on Solana."

This balance between leveraging Solana's performance capabilities and maintaining code efficiency is crucial for sustainable growth and scalability.

The Role of Liquid Staking in DeFi Innovation

Liquid staking tokens have become a cornerstone of DeFi innovation on Solana. Bruder elaborates on their importance:

"There's a ton of tons of things that you can do with liquid staking tokens to kind of, um, play around DeFi potentially or in where you yield, uh, not financial advice for sure. But, um, you know, you can, um, provide liquidity."

These tokens enable users to participate in various DeFi activities while still earning staking rewards, creating new opportunities for yield generation and capital efficiency.

The Evolution of MEV on Solana

As MEV becomes increasingly important on Solana, Bruder discusses potential future developments:

"I think current systems like proven out that, you know, it works pretty well. There's definitely room for improvement. And thinking about how do we improve it? I think there's a lot of learnings to make from our current system. Also, systems and other networks like Fastlane, FlashWatts and PBS."

This ongoing evolution of MEV strategies and infrastructure will play a crucial role in shaping Solana's DeFi ecosystem and overall performance.

Solana's Focus on Reliability and Testing

Bruder emphasizes the importance of ongoing reliability improvements and testing for Solana:

"I think continuing to focus on reliability of the network or testing and all that stuff, just to keep like the network performing well. I think there's, I think, you know, ignoring that outage, I think there's been the pace of development is somewhat slowing down."

This focus on stability and performance is crucial for Solana's long-term success and adoption.

The Potential for Fee Market Adjustments

Bruder discusses the potential for changes in Solana's fee structure:

"I think block spaces like massively underpriced right now. If you agree with that or not, I think everyone can agree that's inaccurately priced. So like whether it's better scheduler, better priority fee mechanisms, potentially dynamic base fees. A lot of these topics are super interesting."

These potential adjustments could help optimize resource allocation and improve overall network efficiency.

Solana's Advantage in the L1 vs L2 Debate

Bruder highlights Solana's unique position as a high-performance L1 blockchain:

"I think it might have been someone from the Alliance team. It's like, when you want to build on Ethereum, there's like, I think there's not that many like projects that are actually building on the L one because it's kind of getting expensive. If you want actually users, you have to go to L2s. So it's like, which L2 do I go to like, arbitrum optimism base? There's like so many decisions to make. It's just like, just Solana, just like, yeah, it's pretty easy. It's all a single state machine."

This simplicity and performance make Solana an attractive option for developers looking to build scalable applications without the complexity of layer 2 solutions.

The Importance of Unique Use Cases on Solana

Bruder encourages developers to think beyond simply replicating Ethereum projects on Solana:

"I think, um, that's certainly true. I do think every chain needs like some base primitives like LSTs borrow and stuff like that, but really think about what are actually the things that are only possible in Solana."

By leveraging Solana's unique capabilities, developers can create innovative applications that truly showcase the network's potential.

Jito's Commitment to Solana's Success

Throughout the podcast, Bruder emphasizes Jito's deep commitment to Solana's success:

"We all want to see Solana succeed. If it's not successful then, um, we're all like kind of wasted some time here."

This alignment of interests between Jito and the broader Solana ecosystem underscores the collaborative nature of the blockchain community and the potential for continued innovation and growth.

Facts + Figures

• Lucas Bruder is the founder and CEO of Jito Labs, a key contributor to the Solana ecosystem.
• Bruder interned at Tesla, working on the Model X before its release, including features like automatic door opening.
• At Built Robotics, Bruder helped automate a 60,000-pound bulldozer for construction tasks.
• Jito's Solana validator client accounts for approximately 60% of the network's stake weight.
• During a recent network outage, Solana stopped producing blocks for about 10 minutes.
• Jito's system currently processes around 800 bundles every second from hundreds to thousands of searchers.
• Liquid staking allows users to stake Solana while maintaining liquidity through receipt tokens.
• Solana's block space is currently considered underpriced, with potential for fee market adjustments in the future.
• Bruder suggests that Solana's performance is advancing faster than other networks, with significant efficiency improvements between versions.
• The podcast mentions the upcoming Firedancer client, which could enhance Solana's network resilience.
• Jito has seen a significant decrease in system downtime alerts, indicating improved reliability.
• Solana's cheap compute resources allow developers to focus less on gas optimization compared to other networks.
• Bruder estimates his resting heart rate at around 40-50 beats per minute, which he attributes to genetics and past athletic experience.

Questions Answered

What is Jito Labs and what do they do?

Jito Labs is a company founded by Lucas Bruder that builds high-performance MEV infrastructure for Solana. They aim to help Solana scale by providing efficient systems for processing transactions and extracting value from the network. Jito Labs also contributes to Solana's ecosystem through their validator client and liquid staking solutions.

How does liquid staking work on Solana?

Liquid staking on Solana allows users to stake their SOL tokens while maintaining liquidity. Users deposit their SOL into a stake pool and receive a liquid staking token (LST) in return. This LST represents their staked position and can be used in various DeFi applications. The stake pool then delegates the SOL to validators, earning rewards which are reflected in the value of the LST.

What caused the recent Solana network outage?

The exact cause of the recent Solana network outage was not definitively stated in the podcast. However, Bruder mentioned that it might be related to a bug that was previously observed on the Devnet. The network stopped producing blocks for about 10 minutes, and a patch was required to restart the network. The incident highlighted the importance of having multiple client implementations and robust recovery procedures.

How is Jito Labs improving Solana's performance?

Jito Labs is improving Solana's performance in several ways. They have developed a high-performance validator client that currently accounts for about 60% of the network's stake weight. They are also working on optimizing MEV extraction and processing, handling up to 800 bundles per second. Additionally, Jito is focusing on improving system reliability and contributing to discussions about fee market adjustments and network scalability.

What advice does Lucas Bruder give to new builders on Solana?

Lucas Bruder advises new builders on Solana to stay focused, find their niche, and ship MVPs quickly for rapid iteration. He recommends using tools like Anchor for efficient development and encourages thinking about unique use cases that leverage Solana's strengths, such as cheap compute and high throughput. Bruder also emphasizes the importance of considering what applications are only possible on Solana, rather than simply replicating projects from other blockchains.

How does Solana compare to Ethereum and Layer 2 solutions?

According to Bruder, Solana offers a unique position between Ethereum and Layer 2 solutions. It provides high performance and low transaction costs as a Layer 1 blockchain, without the need for users to navigate multiple Layer 2 options. This simplicity, combined with Solana's growing ecosystem and network effects, makes it an attractive platform for developers and users. However, Bruder notes that Solana's culture and community are still evolving compared to Ethereum's more established ecosystem.

What is the future of MEV on Solana?

The future of MEV on Solana involves continued optimization and innovation. Bruder mentions the potential for more detailed bundle metrics and statistics to provide insights into network activity. He also discusses the need to think about the next stage of MEV, learning from current systems and other networks' approaches. As Solana's DeFi ecosystem grows, MEV strategies and infrastructure will likely play an increasingly important role in network efficiency and value extraction.

How is Solana addressing network reliability and performance?

Solana is focusing on improving network reliability and performance through various means. This includes ongoing testing and development to enhance stability, as well as discussions about potential fee market adjustments to optimize resource allocation. The introduction of multiple client implementations, such as the upcoming Firedancer client, is expected to improve network resilience. Additionally, the community is working on making algorithms more efficient and optimizing implementation details to push performance boundaries.