How Does the Existence of MEV Affect the Average User’s Transaction Cost?
MEV significantly increases the average user's transaction cost in several ways. Firstly, front-running and sandwich attacks cause the victim to execute their trade at a worse price, which is an implicit cost.
Secondly, the competition among MEV searchers to win the front-running opportunity drives up the gas price for all transactions in a "gas war," leading to higher explicit transaction fees for every network user.
Glossar
Explicit Transaction Fees
Mechanism ⎊ Explicit transaction fees represent a predetermined cost directly associated with executing a trade or transaction within a financial system, functioning as a direct payment for order processing and network utilization.
Sandwich Attacks
Execution ⎊ Sandwich attacks, within cryptocurrency derivatives and options trading, represent a sophisticated market manipulation tactic exploiting order book dynamics.