Formalizing MEV: A Theoretical Framework for Blockchain Economic Security → Research

A transparent, multi-faceted crystal is suspended near dark, angular structures adorned with glowing blue circuit board tracings. This abstract composition visually articulates the foundational elements of blockchain technology and digital asset security

A sleek, high-tech portable device is presented at an angle, featuring a prominent translucent blue top panel. This panel reveals an array of intricate mechanical gears, ruby bearings, and a central textured circular component, all encased within a polished silver frame

Briefing

The paper addresses the critical absence of a formal theoretical framework for Maximal Extractable Value (MEV) attacks, which exploit transaction ordering on public blockchains. It introduces a comprehensive, abstract model of blockchains and smart contracts to establish a foundational MEV theory. This breakthrough provides the necessary rigorous basis for developing and proving the security of future blockchain architectures against sophisticated economic manipulations, ensuring more robust and predictable decentralized systems.

The image presents a detailed view of a futuristic, metallic construct, featuring sharp angles and reflective surfaces in shades of deep blue and silver. Its complex, interlocking design emphasizes precision engineering

Context

Before this research, the understanding of MEV largely stemmed from empirical observations of economic attacks on DeFi protocols. The prevailing theoretical limitation involved the absence of a unified, formal model capable of precisely defining and analyzing the complex interplay of transaction ordering, smart contract interactions, and adversarial value extraction. This gap hindered the systematic development of provably secure countermeasures.

The image displays a close-up of a sleek, transparent electronic device, revealing its intricate internal components. A prominent brushed metallic chip, likely a secure element, is visible through the blue-tinted translucent casing, alongside a circular button and glowing blue circuitry

Analysis

The core mechanism involves constructing a general, abstract model that formalizes the components of a blockchain and its smart contract execution environment. This model defines adversarial capabilities related to transaction reordering, inclusion, and censorship, allowing for a precise characterization of MEV. The approach fundamentally differs from prior work by moving beyond empirical analysis and ad-hoc countermeasures, instead providing a foundational mathematical language for MEV phenomena. This theoretical framework enables the rigorous derivation of security properties and the design of mechanisms provably resilient to MEV.

A complex abstract composition features dark, circular metallic elements and silver, ribbed cylindrical components centrally arranged, enveloped by a dynamic, translucent stream of blue-tinted liquid or crystalline structures. Sharp, faceted blue crystal formations are embedded within this flowing medium, all set against a soft, light gray background

Parameters

Core Concept → Formal MEV Theory
New System/Protocol → Abstract Blockchain Model
Key Authors → Massimo Bartoletti, Roberto Zunino
Publication Venue → arXiv:2302.02154
Latest Version Date → May 25, 2025

A detailed abstract image displays smooth, white, interconnected spherical and toroidal structures at its core. These are intricately surrounded by a multitude of sharp, reflective blue crystalline fragments and fine metallic rods

Outlook

This foundational theory unlocks new avenues for developing provably secure blockchain protocols and smart contracts, shifting from reactive countermeasures to proactive design. It enables the formal verification of MEV-resistant mechanisms, leading to more equitable and predictable decentralized finance (DeFi) ecosystems. Future research can build upon this abstract model to explore the full landscape of MEV, including cross-chain and multi-layer implications, fostering innovations in protocol design and economic security.

A sophisticated, futuristic mechanism with interlocking white and metallic components is depicted, surrounded by dynamic blue digital liquid. This visual metaphor represents the intricate workings of decentralized finance DeFi protocols and blockchain infrastructure

Verdict

This research establishes the indispensable theoretical bedrock for understanding and mitigating Maximal Extractable Value, fundamentally enhancing the security principles of blockchain technology.

Signal Acquired from → arxiv.org