MEV strategies, or Maximal Extractable Value strategies, are methods employed by block producers or validators to profit by reordering, inserting, or censoring transactions within a blockchain block. This extraction occurs by exploiting opportunities such as arbitrage, liquidations, or sandwich attacks. MEV represents a complex economic dynamic within proof-of-stake and proof-of-work systems. It significantly impacts transaction ordering and network fairness.
Context
MEV strategies are a prominent and often contentious topic in crypto news, particularly concerning their implications for network security, decentralization, and user experience. The discussion centers on mitigating the negative effects of MEV, such as increased transaction fees or front-running. Future developments include protocol-level solutions like proposer-builder separation and encrypted mempools. These aim to democratize MEV extraction or reduce its impact on ordinary users.
This research reveals how transaction reverts on rollups are not errors but strategic MEV outcomes, driven by trade-splitting and duplication, demanding protocol reforms.
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