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How Do DeFi Derivatives Contracts Create MEV Opportunities for Miners/validators?

Miners/validators profit by strategically including or front-running liquidation transactions generated by DeFi derivatives contracts.
Greeks.Live18.11.25

How Do DeFi Derivatives Contracts Create MEV Opportunities for Miners/validators?

DeFi derivatives, such as perpetual swaps or options, often require liquidations when collateral falls below a certain threshold. Miners/validators can monitor the mempool for liquidation transactions and strategically include them in their blocks to collect the liquidation fee, which is a form of MEV.

They may even front-run or bundle liquidations for maximum profit.

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