Formalizing MEV: A Foundational Blockchain Attack Theory → Research

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Briefing

This paper addresses the critical lack of a formal theoretical foundation for Maximal Extractable Value (MEV), a pervasive class of economic attacks on public blockchains. It introduces a comprehensive formal theory of MEV, built upon an abstract model of blockchains and smart contracts. This foundational breakthrough provides the necessary rigorous basis for developing provably secure mitigation strategies, fundamentally enhancing the long-term architectural integrity and security of decentralized finance protocols.

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Context

Prior to this research, the understanding of Maximal Extractable Value largely stemmed from empirical observations of its detrimental effects on blockchain networks and DeFi users. The prevailing theoretical limitation involved the absence of a unified, abstract model capable of formally characterizing MEV attacks. This academic challenge hindered the development of robust, proactive defenses against the economic manipulations inherent in transaction ordering.

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Analysis

The paper’s core mechanism involves constructing a formal theory of MEV, grounded in an abstract model of blockchains and smart contracts. This model precisely defines the capabilities of adversaries to reorder, drop, or insert transactions within a block, enabling the extraction of value. This approach fundamentally differs from previous empirical studies by providing a rigorous, mathematical framework. It offers a basis for deriving proofs of security against various MEV attack vectors, moving beyond descriptive analysis to prescriptive security.

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Parameters

Core Concept → Maximal Extractable Value (MEV)
New Theory → Formal MEV Theory
Key Authors → Bartoletti, M. et al.
Foundational Model → Abstract Blockchain Model
Primary Application → Security Proofs
Publication Venue → arXiv
Last Revision Date → May 25, 2025
Impact Area → Decentralized Finance Security
Adversary Focus → Transaction Reordering, Insertion, Dropping
Methodology → Formal Modeling

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Outlook

This formal theory of MEV opens new avenues for proactive security research, shifting focus from reactive countermeasures to provably secure protocol designs. The framework can unlock the development of next-generation blockchain architectures that inherently resist economic exploitation. Over the next three to five years, this foundational work will inform the creation of more resilient and equitable decentralized systems, fostering greater trust and stability within the digital economy.

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Verdict

This research decisively establishes the foundational theoretical framework necessary for understanding and ultimately mitigating the systemic economic vulnerabilities introduced by Maximal Extractable Value in blockchain technology.

Signal Acquired from → arxiv.org