Miner Extractable Value Risks

Miner Extractable Value risks refer to the negative externalities imposed on blockchain users by the extraction of MEV. These risks include higher transaction costs, increased slippage for traders, and potential manipulation of market prices.

When searchers compete, the resulting gas wars can congest the network and make transactions prohibitively expensive for normal users. Furthermore, the ability of validators to reorder transactions can lead to a loss of trust in the neutrality of the network.

If not managed properly, these risks can undermine the security and usability of decentralized finance protocols. It creates a tension between the profitability of validators and the quality of experience for end users.