Briefing
The systemic risk posed by Maximal Extractable Value (MEV) stems from the vast, unquantifiable space of adversarial transaction-ordering strategies, rendering empirical analysis insufficient for security guarantees. This research introduces the first mechanized formalization of MEV using the Lean theorem prover, transforming the analysis from an economic problem into a mathematically verifiable one. This breakthrough allows protocol designers to construct and certify absolute, machine-checked upper bounds on extractable value, which is the necessary foundation for building provably MEV-resistant blockchain architectures and ensuring true transaction fairness.
Context
Before this work, the analysis of MEV relied primarily on empirical observation, economic modeling, and informal mathematical proofs, which could not provide rigorous, exhaustive security guarantees. The prevailing theoretical limitation was the inability to formally verify the optimality of an adversarial strategy or the absence of a profitable one across all possible execution paths, leaving Decentralized Finance (DeFi) protocols vulnerable to undiscovered or unquantified extraction vectors.
Analysis
The core mechanism involves translating the logic of Decentralized Finance (DeFi) protocols and the actions of MEV searchers into a formal, machine-readable language within the Lean proof assistant. This creates a computational model where the adversary’s profit function is explicitly defined and subject to formal deduction. The breakthrough is the use of Lean to construct a machine-checked proof that an adversarial strategy, such as a sandwich attack on an Automated Market Maker (AMM), is mathematically optimal , or conversely, that the MEV extractable from a new protocol is zero. This differs fundamentally from prior approaches by replacing human-written, potentially flawed proofs with a verifiable, formal certificate of correctness.
Parameters
- Formalization Tool ∞ Lean Theorem Prover – The specific interactive theorem proving software used to construct the machine-checked proofs.
- Attack Verified ∞ Sandwich Attacks – The specific, complex MEV strategy whose optimality was proven in the Automated Market Maker model.
- Guaranteed Metric ∞ MEV Bounds – The maximum possible value an adversary can extract from a formally modeled protocol.
Outlook
This formal methodology establishes a new standard for cryptographic security and mechanism design. Future research will focus on extending the formalization to complex, multi-protocol interactions and dynamic consensus mechanisms. In 3-5 years, this will enable a new generation of DeFi primitives whose MEV-resistance is not merely an assumption but a cryptographically certified property , potentially leading to the integration of MEV-bounding proofs directly into smart contract deployment pipelines.
Verdict
The mechanized formalization of Maximal Extractable Value using theorem proving fundamentally shifts blockchain security from economic conjecture to mathematical certainty.
