How Does MEV (Maximal Extractable Value) Relate to Arbitrage in Decentralized Exchanges?

MEV is the maximum value that can be extracted from block production by including, excluding, or reordering transactions within a block. Arbitrage is one of the primary forms of MEV.

Arbitrage bots compete fiercely to be the first to execute the profitable trade resulting from a price imbalance. This competition leads to high gas fees and contributes to the overall MEV extracted by validators or searchers.

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