Maximal Extractable Value
Also known as MEV miner extractable value front-running sandwich attack
Maximal extractable value, or MEV, is the profit that block producers or specialised bots can capture by choosing which pending transactions to include, exclude or reorder. Examples include arbitrage between exchanges and sandwich attacks, in which a bot trades just before and after a user’s swap to profit from the price move it causes. MEV can raise costs for ordinary users, and networks are developing tools to limit its harmful forms.
Related terms
- Slippage The gap between expected and actual execution price. Trading & Markets
- Automated Market Maker A DEX design that prices trades with a formula and token pools. DeFi
- Liquidity Pool Tokens pooled in a contract to enable trading or lending. DeFi
- Impermanent Loss The cost to liquidity providers when pooled token prices diverge. DeFi
- Liquid Staking Staking while receiving a tradable token for the staked deposit. DeFi
