Can MEV Extraction Be Considered a Form of Legitimate Arbitrage in Some Contexts?

Yes, a narrow definition of MEV includes forms of legitimate, competitive arbitrage. Arbitrageurs monitor DEXs for price discrepancies across different liquidity pools and profit by executing a sequence of trades that equalize the prices.

This activity is essential for market efficiency, as it ensures asset prices across the ecosystem remain consistent. However, the term MEV also encompasses malicious acts like front-running and sandwich attacks, which exploit other users for profit, making the broader practice controversial and often predatory.