What is Miner Extractable Value (MEV), and why should traders care?

[chainsniff]

A: MEV refers to the profits that miners, validators, or sequencers can capture by reordering, including, or censoring transactions in a block. Key points:

Arbitrage & front-running: MEV allows actors to profit from price discrepancies or pending transactions.

Impact on users: High MEV can lead to increased gas fees, failed transactions, or unexpected slippage in DeFi trades.

Mitigation strategies: Flashbots, fair ordering protocols, and MEV-aware DEXs help reduce negative effects on retail users.

Network health: Excessive MEV can incentivize centralization as actors seek to control block production to maximize profits.

Traders and developers monitor MEV closely to optimize strategies and minimize risk when using high-volume DeFi protocols.

#MEV #DeFiRisk #CryptoTrading

[kelson10]

MEV represents hidden profits from transaction ordering — traders must understand it to avoid unfair losses.

[Nahid10]

Knowing how MEV works helps traders predict slippage, frontrunning, and optimize execution on-chain.