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Do L2 Solutions Completely Eliminate MEV Opportunities for Their Own Sequencers?

No, L2 solutions shift MEV control to the L2 sequencer, creating local front-running and arbitrage opportunities within the Layer-2 environment.
Greeks.Live14.11.25

Do L2 Solutions Completely Eliminate MEV Opportunities for Their Own Sequencers?

No, Layer-2 solutions do not completely eliminate Maximal Extractable Value (MEV); they shift the opportunity from the Layer-1 validator to the Layer-2 sequencer. The sequencer is the entity responsible for ordering and batching L2 transactions.

This entity gains control over transaction ordering within the L2 environment, creating new MEV opportunities like front-running and arbitrage that are local to the L2. Solutions are being developed to decentralize the sequencer role to mitigate this.

What Is the Relationship between the Volatility Surface and the Concept of ‘Local Volatility’?
How Does the Complexity Affect the Decentralization of the Sequencer?
What Is the Role of the “Sequencer” in the Layer 2 Transaction Process?
What Is the Role of a ‘Sequencer’ in Layer-2 Solutions That Use Transaction Batching?

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