Thread by @asiahodl

MEV (Miner Extractable Value) seems like such a complex attack that traders ignore it. But there's too much at stake though. Let me ELI5:
1. What is MEV?
2. How big of a deal is it?
3. How can you avoid it or profit?
h/t @defin00b @bertcmiller

Full read👇🏻 messari.io/article/unders…

1. What is MEV? It's the additional profit a miner can get by re-ordering, including or excluding transactions from the blocks they are in charge of producing.

While winning a block is fair, the winning producer gets to play God for 1 block... and reap excess profits

2. Is it a big deal? They've made $235 million in the past month. For example, when you set a 0.5% slippage tolerance on @Uniswap, bots are likely creaming off the top

3. How do you avoid this or get profits?
Before an #Ethereum transaction gets included in a block it goes to a "mempool" staging area.
The simplest way to minimize MEV is to use a private mempool to directly access miners.

#Flashbots is the market leader (84% $ETH hash rate). It connects MEV bots directly to miners.

@Keeper_DAO @secret_swap @bloXrouteLabs @archer_swap and @_alchemistcoin offer private networks and reimburse transactions that have MEV with profits from their bots.

For a easy-to-understand report into MEV Strategies (Frontrunning, backrunning, sandwiching, Uncle Bandit), how it affects $ETH miners and #EIP1559, and a deep dive into solutions, check out -->
messari.io/article/unders…