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Can a Validator Also Act as a Market Maker in a DeFi Protocol?

Yes, a validator can combine MM functions (arbitrage/liquidity provision) with their power to ensure optimal transaction sequencing via MEV extraction.
Greeks.Live11.11.25

Can a Validator Also Act as a Market Maker in a DeFi Protocol?

Yes, a validator can technically act as a market maker. They can run a searcher bot that identifies arbitrage opportunities within a DeFi protocol (acting as a market maker by providing liquidity for a profitable trade) and then use their validator power to ensure their arbitrage transaction is included and sequenced optimally within the block.

This combines the MM function with MEV extraction power.

What Is the Primary Difference between a validator’S Role in MEV and a Traditional Market Maker’s Role?
How Does the Shift to Proof-of-Stake Consensus Mechanisms Impact MEV Extraction?
In DeFi, What Risk Does Improper Sequencing of Price Oracle Updates and Trades Pose?
How Is MEV Extraction Managed in Proof-of-Stake (PoS) Consensus Mechanisms?

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