MEV Bot

Definition ∞ An MEV Bot is an automated program designed to capitalize on Maximal Extractable Value (MEV) opportunities on a blockchain. MEV refers to the profit validators or miners can make by strategically including, excluding, or reordering transactions within a block. These bots analyze the mempool for profitable transaction sequences, such as arbitrage, liquidations, or sandwich attacks, to generate revenue.
Context ∞ MEV Bots are a significant topic in blockchain economics, influencing transaction ordering and network efficiency. Current discussions often debate the fairness of MEV extraction and its impact on user experience and transaction costs. Future considerations involve the development of more equitable MEV distribution mechanisms and the potential for protocol-level solutions to mitigate its negative externalities.