DefineDeFiWeb3 Glossary

MEV (Miner Extractable Value)

Extra profit that people running the network can make by reordering transactions. Sometimes this is unfair to regular users.

Example

A validator seeing your big trade coming and jumping in front of you to profit from the price change you're about to cause.

Related Terms

Advanced Concepts
DeFi MEV Extraction Sequence DiagramDeFi MEV diagram showing how maximum extractable value bots detect and extract value from user blockchain transactionsMEV Extraction TimelineUserMempoolMEV BotBlock BuilderBuy 10 ETH1Detects tx2Bundle: 3 txs3Bundle1. Bot buys first2. Your trade3. Bot sellsBlock #12345Finalized4Result: You paid ~2% more • Bot profits from the difference

⚙️How It Works

  1. 1

    Transaction Visibility

    Your pending transaction sits in the public mempool where anyone can see it

  2. 2

    Opportunity Detection

    MEV bots scan the mempool for profitable opportunities

  3. 3

    Strategy Selection

    Bots choose tactics: frontrunning, backrunning, or sandwich attacks

  4. 4

    Bundle Creation

    Profitable transactions are bundled and sent to block builders

  5. 5

    Extraction

    The block producer includes the bundle, extracting value from regular users

📊Key Numbers

$600M+
Total Extracted
MEV extracted on Ethereum since 2020
$1-5M
Daily MEV
typical daily extraction on Ethereum
1000s
Searcher Competition
of bots competing for MEV

⚠️Risks & Warnings

  • •Sandwich attacks can cost you 1-5% on large trades
  • •Frontrunning makes your trades execute at worse prices
  • •Even 'private' transactions can leak to MEV searchers
  • •High gas prices during MEV competition increase costs for everyone
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