Does Transaction Batching Eliminate MEV Entirely?
No, transaction batching does not eliminate Maximal Extractable Value (MEV) entirely, but it can significantly reduce exploitative MEV like front-running. While batching makes it harder to isolate and sandwich individual trades, the sequencer or block builder still retains some control over the ordering of the batches themselves.
Arbitrage opportunities between batches or other non-front-running forms of MEV may still be extractable.
Glossar
Maximal Extractable Value
Value ⎊ Within cryptocurrency derivatives and financial engineering, Maximal Extractable Value (MEV) represents the profit achievable by strategically ordering transactions within a blockchain.
Transaction Batching
Aggregation ⎊ Transaction batching, within cryptocurrency, options trading, and financial derivatives, represents a method of consolidating multiple individual transactions into a single, larger unit for processing.
Batching
Strategy ⎊ Batching is a strategic approach in financial systems where multiple individual operations are grouped together for collective processing.