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Glossary

MEV Meaning: What Does MEV Mean in Crypto?

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Definition

Maximal Extractable Value from transaction ordering

MEV bots front-run trades for $1B+ yearly; Flashbots auctions mitigate harmful extraction, democratizing access to opportunities. MEV Types: Arbitrage: ~40% of MEV, generally beneficial. Liquidations: ~25%, necessary for protocol health. Sandwich Attacks: ~20%, harmful to users. NFT Sniping: ~15%, competitive marketplace dynamics. Mitigation Solutions: Flashbots Protect RPC, commit-reveal schemes, fair ordering protocols.

Keywords

  • Advanced Concepts