Maximal Extractable Value (MEV) is the maximum profit earned from transaction order changes in block production.
From Miners to Validators: Ethereum's shift to proof-of-stake gives validators control over transaction orders, formerly a miner's role.
MEV Searchers: Independent network participants called searchers use complex algorithms to spot and exploit profitable MEV opportunities.
Gas Golfing: Skilled searchers optimize gas usage in transactions, providing them a competitive edge.
Frontrunners & Flashbots: Some searchers observe the mempool for profitable transactions, whereas Flashbots offer a way to submit MEV transactions discreetly.
MEV Examples: DEX arbitrage, liquidations, sandwich trading, and NFT MEV are among known MEV opportunities.
MEV Impacts: MEV strengthens DeFi protocols, but may lead to network congestion, high gas prices, and possible blockchain reorganization.
Ethereum fellow, exercise caution
Beware, beware, beware! You might be the target of an MEV bot one day. Verify if you've completed any transaction on Ethereum.
What does MEV stand for?
Maximal Extractable Value [X]
Miner Extractable Value
Minimum Enterprise Value
Market Exchange Volume
How do miners extract MEV?
By mining less profitable blocks
By choosing the sequence of transactions in a block [X]
By mining empty blocks
By reducing the block gas limit
Which activity contributes the most to MEV?
Frontrunning [X]
Cryptocurrency mining
Yield farming
Staking
What is one negative impact of MEV?
Decreased mining profitability
Increased blockchain size
Higher transaction fees [X]
Lower liquidity in decentralized exchanges
How might Ethereum 2.0 affect MEV?
Increase MEV opportunities
Eliminate MEV completely
Decrease the overall impact of MEV [X]
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