Formalizing MEV: A Rigorous Abstract Model for Blockchain Security → Research

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Briefing

This research addresses the critical problem of insufficiently established theoretical foundations for Maximal Extractable Value (MEV) attacks, despite their pervasive real-world impact on public blockchains. It proposes a formal theory of MEV, grounded in a general, abstract model of blockchains and smart contracts. This foundational breakthrough provides the essential basis for developing rigorous security proofs against MEV attacks, thereby paving the way for the creation of more resilient and equitable decentralized systems.

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Context

Prior to this research, Maximal Extractable Value (MEV) was recognized as the potential profit block producers could gain by strategically reordering, including, or excluding transactions within a block. While empirical studies extensively documented MEV’s detrimental effects on decentralized finance (DeFi) protocols and network users, a comprehensive and rigorous theoretical framework for MEV remained largely undeveloped. This theoretical limitation hindered the systematic analysis of MEV vulnerabilities and the design of provably secure mitigation strategies.

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Analysis

The paper’s core mechanism introduces a comprehensive, abstract model that formalizes Maximal Extractable Value. This model precisely defines how adversaries manipulate transaction ordering, insertion, or dropping within blocks to extract value from smart contracts. It fundamentally departs from previous empirical approaches by providing a mathematical framework, enabling a systematic and rigorous analysis of MEV. This abstract representation facilitates the precise characterization of MEV vulnerabilities and supports the design of verifiable mitigation strategies, moving beyond observational data to foundational principles.

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Parameters

Core Concept → Maximal Extractable Value (MEV)
New System/Protocol → Formal MEV Theory
Key Authors → Massimo Bartoletti, Roberto Zunino
Publication Platform → arXiv
Latest Revision Date → May 25, 2025

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Outlook

This formal MEV theory unlocks new avenues for cryptographic research and mechanism design, extending beyond current empirical observations. It facilitates the development of provably secure protocols and smart contracts inherently resistant to MEV, fostering a more robust and fair decentralized finance ecosystem. Future work will involve applying this theoretical framework to design and verify specific MEV-resistant blockchain architectures and transaction ordering mechanisms, shaping the long-term trajectory of blockchain security and decentralization.

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Verdict

This foundational theoretical framework for MEV is critical for designing provably secure blockchain protocols and ensuring long-term decentralized system integrity.

Signal Acquired from → arXiv.org