MEV (Maximal Extractable Value)
Profit miners/validators extract by reordering transactions in a block.
MEV (Maximal Extractable Value) is profit that miners or validators can achieve by manipulating the order, inclusion or exclusion of transactions in the block they mine.
Types of MEV:
•Front-running — see a large transaction in mempool, insert yours before it with higher gas fee
•Sandwich attack — buy before + sell after victim's trade, causing slippage
•Arbitrage — exploit price difference between DEXs in same block
•Liquidation MEV — be first to liquidate a position and claim the bonus
Scale: $1+ billion MEV is extracted annually on Ethereum.
Flashbots: MEV infrastructure attempting to democratize MEV and reduce negative effects (mempool congestion, gas wars).
User protection:
•Private RPC (Flashbots Protect) — transaction goes directly to validator, not public mempool
•MEV blocker tools