What Is "Miner Extractable Value" (MEV) and How Does It Relate to Transaction Fees? ▴ Learn

What Is “Miner Extractable Value” (MEV) and How Does It Relate to Transaction Fees?

Miner Extractable Value (MEV) is the profit a miner can make by strategically including, excluding, or reordering transactions within the blocks they produce. This is a form of front-running or sandwich attacks, especially prevalent on smart contract platforms like Ethereum (pre-Merge).

MEV is a value captured in addition to the standard block reward and transaction fees. It incentivizes miners to optimize block composition for maximum profit, which can sometimes result in higher fees for regular users.

How Does Maximal Extractable Value (MEV) Relate to the Concept of Front-Running in DeFi?

Explain the Concept of ‘Maximum Extractable Value’ (MEV) in the Context of Block Production

Define ‘Miner Extractable Value’ (MEV) and Provide a Common Example

Explain the Concept of Miner Extractable Value (MEV) in Simple Terms