MEV

/em-ee-VEE/ · noun · Development · Origin: 2019

Definitions

  1. Maximal extractable value (originally 'miner extractable value') — the profit a block producer can capture by arbitrarily reordering, inserting, or censoring transactions within a block. MEV bots front-run trades, sandwich attack swaps, and exploit liquidation opportunities. It's a fundamental property of public mempools and represents a hidden tax on users.

    In plain English: The money that blockchain validators can extract by rearranging the order of pending transactions to their advantage, essentially cutting in line and skimming value from regular users.

    Example: A MEV bot spotted her large DEX swap in the mempool, sandwich-attacked it, and extracted $800 in profit — all within a single block.

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