Maximum Extractable Value (MEV)

Maximum extractable value (MEV) refers to the maximum value that can be extracted from the usage of cryptocurrency through re-ordering blocks. This cost is often unseen, but certainly exists as an “invisible tax” to all users of cryptocurrency. Examples of MEV include arbitrage, liquidations, or sandwich trading. MEV is commonly seen as a negative attribute to the space; MEV is a method of stealing pennies and dollars from users, accumulating to hundreds to thousands of dollars over time. Understanding the existence of MEV, we can take precautious measures to reclaim that capital, optimizing our yields to prevent it being stolen by others. Preserving these few cents and dollars, allows us to inversely accumulate hundreds to thousands of dollars in optimized capital over time.