TECHNICAL CONCEPTS
MEV (Maximal Extractable Value)
Definition
MEV refers to the maximum profit that can be extracted by reordering, including, or excluding transactions within a block. This includes front-running, sandwich attacks, and arbitrage opportunities.
Example
Example
A bot sees your large DEX trade, places a buy order before yours and a sell order after, profiting from the price impact you create.
Risks to Consider
Risks
- Increased trading costs
- Unfair extraction
- Network centralization
Common Questions
How can I protect myself from MEV?
Use private mempools, set appropriate slippage tolerance, or use MEV-protected trading interfaces.