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Maximal Extractable Value
Extra value a block producer can capture by choosing how to order or include transactions.
Maximal Extractable Value (MEV) refers to additional value a block producer can capture by strategically choosing which transactions to include, exclude, or reorder within a block, beyond standard fees and rewards.
Common examples include front-running a profitable trade or inserting transactions around a large trade to profit from its price impact — practices that can affect ordinary users' transaction outcomes.
Examples
- A large decentralized exchange trade can attract MEV activity from parties trying to profit off its price impact.
- Some infrastructure has been built specifically to reduce or redistribute MEV more fairly.