Formalizing MEV: Abstract Model for Blockchain Economic Attacks → Research

A close-up view reveals a complex metallic device partially encased in striking blue, ice-like crystalline structures, with a central square component suggesting a specialized chip. Wires and other mechanical elements are visible, indicating an intricate technological assembly

A close-up reveals a multifaceted crystalline lens reflecting a pattern of bright blue digital squares, positioned on a dark, intricately detailed circuit board with glowing blue pathways. This composition visually encapsulates the abstract nature of cryptocurrency and its underlying blockchain architecture

Briefing

Maximal Extractable Value (MEV) represents a class of economic attacks where network adversaries manipulate transaction ordering to extract value from smart contracts. This paper addresses the insufficient theoretical foundations of MEV by proposing a formal theory grounded in a general, abstract model of blockchains and smart contracts. This foundational breakthrough provides a robust framework for developing provably secure protocols against MEV, enhancing the economic robustness and fairness of decentralized systems.

A detailed, angled shot presents a robust blue and silver device, enveloped by a dense layer of white foam bubbles. The central silver cylindrical component, with its precise machining and internal hexagonal structure, is clearly visible amidst the effervescence, contrasting with the smooth blue casing that bears subtle metallic lettering

Context

Prior to this research, the understanding of Maximal Extractable Value largely stemmed from empirical observations of economic attacks within decentralized finance. While the practical impact of MEV was evident, a comprehensive, formal theoretical framework to systematically analyze and counter these complex adversarial behaviors remained underdeveloped. This gap created challenges for rigorously proving security properties and designing effective mitigation strategies.

A detailed view presents a complex metallic cylindrical component, adorned with bands of vibrant blue geometric crystals and a textured white, porous substance. The metallic elements showcase precision engineering, while the crystalline and frothy textures add a dynamic, abstract quality to the structure

Analysis

The core of this work is the development of a formal theory of MEV. This theory employs a general, abstract model of blockchains and smart contracts, allowing for a precise characterization of the mechanisms through which value is extracted. The model explicitly defines the adversarial capabilities, such as reordering, dropping, or inserting transactions, enabling a systematic analysis of their impact. This approach fundamentally differs from purely empirical studies by providing a mathematical basis for understanding MEV, moving beyond anecdotal evidence to formal proofs.

A sleek, transparent blue device, resembling a sophisticated blockchain node or secure enclave, is partially obscured by soft, white, cloud-like formations. Interspersed within these formations are sharp, geometric blue fragments, suggesting dynamic data processing

Parameters

Core Concept → Maximal Extractable Value Formalization
Proposed Framework → Abstract Blockchain Model
Key Authors → Massimo Bartoletti, Roberto Zunino
Publication Venue → arXiv
Latest Revision → May 25, 2025

A translucent blue computational substrate, intricately patterned with metallic nodes, hosts a delicate accumulation of white micro-bubbles. This visual metaphor vividly depicts the complex internal workings of a decentralized ledger system, highlighting the granular processing of information

Outlook

This formal theory of MEV opens critical avenues for future research, particularly in designing and formally verifying MEV-resistant blockchain protocols and smart contracts. The abstract model provides a powerful tool for analyzing the security implications of various transaction ordering mechanisms and consensus algorithms. Real-world applications could include the development of provably fair transaction inclusion policies and the creation of DeFi protocols inherently resilient to front-running and sandwich attacks, fostering a more equitable on-chain environment.

A vibrant, multifaceted blue digital asset, reminiscent of a high-value token or a core cryptographic primitive, is seen partially immersed in a bed of white, effervescent foam. Adjacent to it, a sleek metallic device, potentially a hardware wallet or a component of a node, is also touched by the foam

Verdict

This research establishes a foundational theoretical framework for understanding and countering Maximal Extractable Value, a critical step towards building more secure and economically sound decentralized systems.

Signal Acquired from → arxiv.org