How Does the Concept of Miner Extractable Value (MEV) Relate to Front-Running in Decentralized Finance (DeFi)?
MEV is the profit a block producer (miner or validator) can extract by including, excluding, or reordering transactions within a block. Front-running is a form of MEV where a trader observes a pending transaction and submits their own transaction with a higher gas fee to execute an order before the original one.
This is common in decentralized exchanges (DEXs) and is often referred to as a sandwich attack. Solutions like Flashbots aim to mitigate this by creating a private transaction relay network.