MEV Extractable Value

MEV, or Maximal Extractable Value, refers to the profit that can be made by validators or searchers through the inclusion, exclusion, or reordering of transactions in a block. This includes strategies like front-running, back-running, and sandwich attacks.

Because validators control the order of transactions, they have a unique opportunity to extract value from the order flow. MEV is a significant and complex aspect of blockchain economics, with both positive and negative implications for the network.

While it can lead to more efficient markets through arbitrage, it also creates an adversarial environment for regular users. Many protocols are now designing mechanisms to redistribute or mitigate the impact of MEV.