Semantic Layer

Semantic Layer is an infrastructure protocol that introduces Application-Controlled Execution (ACE) for decentralized applications (dApps). It allows dApps to internalize miner extractable value (MEV), scale their throughput independently of the base chain, and implement custom execution logic while retaining access to on-chain liquidity and composability.

Semantic Layer operates as an execution layer that sits between dApps and the base blockchain. Instead of relying on validators or block builders, dApps using Semantic Layer can control the order and conditions of their users’ transactions. This design enables:

MEV internalization: capture revenue from backrunning transactions or auction the rights to external searchers.

Scalability: aggregate transactions off-chain on high-performance infrastructure and settle them on-chain in batches.

Custom execution policies: implement rules such as prioritizing cancellations or bundled settlements.

Co-processor integration: inject outputs from external services like oracles into transactions, even if those services are not deployed on the host chain.