MEV (Maximal Extractable Value)

Maximal Extractable Value (MEV) refers to the profit that validators, block builders, or searchers can capture by reordering, inserting, or censoring transactions within a block. MEV often arises from DeFi arbitrage, liquidations, and sandwich attacks around large swaps. While MEV can improve market efficiency by aligning prices across venues, it can also harm users through worse execution and increased transaction costs. Ethereum’s ecosystem has developed mitigation approaches such as proposer/builder separation (PBS), relays, and private transaction channels, but MEV remains an active research and governance topic. For mainstream adoption, MEV matters because it influences user trust, wallet UX, and the fairness of on-chain markets–especially during high-volume events. It’s also part of institutional analysis because MEV contributes to validator revenue and staking yield. Long-tail keywords include “MEV protection,” “sandwich attack,” and “Ethereum transaction ordering,” which are increasingly common among sophisticated DeFi users and builders. #Ethereum #VEI #VirtualEthereumIndex. Reference: vei.xyz/ethereum-glossary

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