A case study in Miner Extractable Value

Quick Take

  • Miner Extractable Value (MEV) refers to the amount of profit that miners can extract from reordering and censoring transactions on the blockchain
  • Ethereum miners are increasingly taking advantage of the MEV opportunity. Recently, multiple mining pools were connected to a DEX arbitrage bot
  • At best, MEV can be additive to a blockchain’s security because it brings validators more fees. At worst, MEV may lead to consensus instability
To understand the basics of frontrunning on blockchains and Miner Extractable Value (MEV), see this research piece on how successful applications can be parasitic to a blockchain’s security. “Miner Extractable Value” (MEV) refers to the amount of profit a validator can extract with the help of their role in ordering and censoring transactions on the […]

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