What is MEV (Maximal Extractable Value)?

Question

Accepted Answer

Maximal Extractable Value (MEV) is the maximum profit a block producer, such as a validator or miner, can obtain by strategically including, excluding, or reordering transactions within a block beyond the standard block reward and transaction fees. This value is primarily extracted through sophisticated trading strategies like arbitrage, liquidations, and front-running in decentralized finance (DeFi) protocols, creating a hidden economic layer within blockchain transaction ordering.

MEV (Maximal Extractable Value)

What is MEV (Maximal Extractable Value)?

What is Maximal Extractable Value (MEV) and how does it manifest in blockchain networks?

How do "searchers" and block producers collaborate or compete to extract MEV, and what are the primary extraction strategies?

Why is MEV considered a systemic risk or "hidden tax" on blockchain users, and what are its economic implications for network health?

How are solutions like MEV-Boost, Flashbots, and Proposer-Builder Separation (PBS) attempting to mitigate the negative effects of MEV?

Learn More