What is MEV?
MEV (Maximal Extractable Value) refers to the profit that block producers can extract by reordering, inserting, or censoring transactions. Every time you swap tokens on a DEX, you might be losing money to invisible actors extracting value from your transaction.
Protection Strategies
- Private RPCs: Flashbots Protect, MEV Blocker
- MEV-Aware DEXs: CowSwap, 1inch Fusion, UniswapX
- Slippage Settings: Lower tolerance reduces MEV opportunity
- Order Splitting: Smaller trades are less attractive targets
Key Takeaways
- MEV extracts ~$600M+ annually from Ethereum users
- Sandwich attacks are the most common MEV affecting traders
- Your slippage tolerance determines your maximum MEV exposure
- Use private RPCs (Flashbots Protect, MEV Blocker) for free protection
- MEV-aware DEXs provide built-in protection