MEV Mitigation

Definition ∞ MEV mitigation refers to strategies and techniques designed to reduce or neutralize the impact of Miner Extractable Value (MEV). MEV represents the profit that block producers can extract from reordering, inserting, or censoring transactions within blocks. Mitigation aims to ensure fairer transaction ordering and prevent exploitation.
Context ∞ The ongoing development of MEV mitigation strategies is a critical area of research and development within the blockchain space, particularly for high-throughput networks like Ethereum. Current discussions focus on proposer-builder separation (PBS), encrypted mempools, and sophisticated transaction ordering algorithms. A central challenge is balancing the prevention of MEV extraction with the need for efficient block production and network security.

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→Transaction Sequencing

→Arbitrage Resilience

→Consensus Impossibility

Application-Layer Mechanism Design Achieves Provable MEV Resilience for DeFi

Foundational impossibility results mandate shifting MEV mitigation from consensus to application-layer smart contracts, achieving provable strategy proofness.

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→Decentralized Finance

→Risk-Free Profit

→Front-Running

Application-Layer Mechanism Design Achieves Provable MEV Elimination and Strategy Proofness

A novel AMM mechanism batch-processes transactions using a constant potential function, shifting MEV mitigation from consensus to application logic for provable incentive compatibility.

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→Arranger Primitive

→Security Mechanism

→Transaction Ordering

Decentralized Rollup Sequencers Achieve Liveness and Censorship Resistance via Set Consensus

The Arranger primitive, built on Set Byzantine Consensus, eliminates the L2 centralization bottleneck, securing transaction ordering and liveness.

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→Commitment Scheme

→Block Production

→Asynchronous Agreement

Decoupled Time-Lock Commitments Enforce Fair Transaction Ordering

Introducing Decoupled Time-Lock Commitments, a new primitive that uses VDFs to cryptographically enforce a future transaction reveal, fundamentally eliminating proposer-side MEV.

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→Censorship Resistance

→Fairness Mechanism

→Transaction Ordering

Commitment Proofs Decentralize Block Production and Ensure Transaction Inclusion

A Commitment-Inclusion Proof mechanism decouples transaction inclusion from ordering, eliminating builder censorship risk for a fairer block production architecture.

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→MEV Mitigation

→Relative Batch Fairness

→Causal Design

FairDAG Achieves High-Throughput, Resilient Transaction Ordering Using Multi-Proposer Causal Design

FairDAG introduces a two-layer DAG-based consensus to decouple block proposal from final ordering, fundamentally constraining adversarial MEV manipulation while boosting throughput.

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→Decentralized Finance

→Validator Profit

→FCFS Guarantee

Protected Order Flow Minimizes MEV While Preserving Proposer-Builder Separation

Protected Order Flow (PROF) is a new mechanism limiting adversarial MEV extraction in PBS without sacrificing transaction speed or validator profit.

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→Commit-Reveal Schemes

→Cryptoeconomics

→Game Theory Analysis

Formalizing MEV as a Game to Quantify Mitigation Strategies

Game theory formalizes the MEV supply chain, proving unconstrained transaction ordering creates a systemic welfare loss, unlocking quantified mitigation via mechanism design.

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→Committee Security

→Ciphertexts Privacy

→Strategy Proofness

Improved Batched Threshold Encryption Secures Private Transaction Ordering

This cryptographic upgrade to Batched Threshold Encryption enables scalable, private mempools, fundamentally eliminating front-running MEV.

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→Signature Scheme

→On-Chain Economics

→Block Height Expiry

Time-Bound Signatures Cryptographically Enforce Transaction Expiry to Mitigate MEV

TB-Sig embeds a block height expiry into Schnorr signatures, granting users temporal control over transactions to fundamentally constrain block producer MEV extraction.