MEV
Maximal Extractable Value — profit captured by reordering, inserting, or censoring transactions within a block.
MEV (Maximal Extractable Value, formerly Miner Extractable Value) refers to the profit a block producer can extract by strategically ordering transactions in a block. This includes front-running trades (inserting a buy before a large buy order), sandwich attacks (buying before and selling after a target trade), and liquidation sniping.
MEV is estimated to have extracted over $1 billion from Ethereum users since 2020. Most MEV is now captured by specialised searchers (bots) who use flashbots-style auctions to pay validators directly for transaction ordering priority.
MEV-Boost and related mechanisms have formalised and partly democratised MEV, redistributing some value to validators. However, critics argue it fundamentally disadvantages ordinary users and centralises block production power.