Understanding Cross-Chain MEV
Maximal Extractable Value (MEV) is no longer just a quirk of Ethereum's infrastructure or a game played by a handful of sophisticated arbitrage bots. As the blockchain ecosystem matures and increasingly operates across multiple chains, MEV is evolving into a complex, multi-layered challenge that affects users, developers, protocols, and the economic integrity of decentralized finance (DeFi).
This guide explores MEV in the context of cross-chain interactions, examining how it works, who it impacts, and what solutions may lie ahead.
What Is MEV?
Understanding Maximal Extractable Value
MEV refers to the maximum value that can be extracted from block production in excess of the standard block reward and gas fees by including, excluding, and changing the order of transactions in a block. This phenomenon arises due to the transparent nature of blockchain networks, where pending transactions are visible in the mempool before being confirmed.
Evolution from Miner to Maximal Extractable Value
Initially termed "Miner Extractable Value" in the context of proof-of-work (PoW) systems like Ethereum, MEV highlighted the ability of miners to manipulate transaction ordering for additional profits. With Ethereum's transition to proof-of-stake (PoS) via The Merge, validators replaced miners in block production, prompting the shift to the term "Maximal Extractable Value."
Mechanisms of MEV Exploitation
MEV can be extracted through various strategies:
1. Arbitrage
MEV arbitrage bots identify and exploit price differences for the same asset across different decentralized exchanges or DEXes. This is also known as loss versus rebalancing. These bots look for a token price to be higher or lower on different exchanges, and then exploit the price difference between the two. Many liquidity providers haven't even heard of LVR, but it costs them 5-7% of their liquidity, resulting in hundreds of millions lost each year. In fact, when accounting for LVR, many of the largest liquidity pools are not profitable for LPs at all. Learn more about LVR/
2. Sandwich Attacks
Sandwich attacks occur when a user's transaction gets trapped, or "sandwiched," between two hostile transactions - one before and one after. As a result, the original transaction executes at a much higher price than necessary, leading to an inflated price for the original trader and a profit for the malicious trader placing the two extra trades (known as a "searcher"). Learn more about sandwich attacks.
3. Liquidation Hunting
Liquidation bots specialise in monitoring lending platforms looking for undercollateralized loans. If a borrower's collateral falls below a required threshold, these bots execute liquidation transactions to claim rewards.
4. Backrunning
Backrunning is a specific type of MEV (Maximal Extractable Value) which causes some traders to miss out on potential profit opportunities from their trades. In practice, backrunning involves strategically executing a transaction immediately after another, high-value transaction. By doing this, the backrunning transaction capitalizes on the arbitrage opportunity left over from the price impact of the initial transaction. Learn more about backrunning.
Implications for the Blockchain Ecosystem
While MEV can contribute to market efficiency through arbitrage, it also poses challenges:
- User Experience: MEV strategies can lead to unfavorable trade outcomes for regular users, such as increased slippage or failed transactions.
- Network Fairness: The ability of certain participants to extract additional value can create an uneven playing field
- Security Concerns: Unchecked MEV practices may incentivize behaviors that threaten the integrity and security of the blockchain network.
The Rise of Cross-Chain MEV
As the blockchain ecosystem expanded beyond Ethereum, incorporating various Layer 1 and Layer 2 networks, MEV opportunities transcended single-chain boundaries. Cross-chain MEV refers to the extraction of value by exploiting inefficiencies across multiple blockchains, often involving complex strategies that span different networks.
Several factors contributed to the emergence of cross-chain MEV:
- Interconnected DeFi Ecosystems: The proliferation of decentralized finance (DeFi) platforms across various blockchains created fragmented liquidity pools. This fragmentation led to price discrepancies for identical assets on different chains, presenting arbitrage opportunities for sophisticated actors.
- Bridge Mechanisms: Cross-chain bridges, essential for transferring assets between blockchains, often introduce latency and security vulnerabilities. These characteristics can be exploited for MEV through strategies like latency arbitrage and bridge manipulation.
- Non-Atomic Transactions: Unlike single-chain transactions, cross-chain operations lack atomicity, meaning that the execution of transactions on different chains cannot be guaranteed to occur simultaneously. This non-atomic nature increases the complexity and risk associated with cross-chain MEV strategies.
Implications and Challenges
The evolution of MEV into cross-chain contexts introduces several implications and challenges:
- Increased Complexity: Cross-chain MEV strategies require advanced technical knowledge and infrastructure, limiting participation to well-resourced entities and potentially exacerbating centralization concerns.
- Security Risks: The reliance on bridges and the non-atomic nature of cross-chain transactions increase the attack surface for malicious actors, posing significant security risks to the broader ecosystem.
- Regulatory Considerations: As MEV strategies become more complex and widespread, they may attract regulatory scrutiny, particularly if they are perceived to undermine market fairness or consumer protection.
Mechanisms of Cross-Chain MEV Extraction
Cross-chain MEV involves exploiting inefficiencies and opportunities across multiple blockchain networks. As decentralized finance (DeFi) ecosystems expand, the complexity and variety of MEV extraction methods have grown. Below are the primary mechanisms through which MEV is extracted in cross-chain contexts:
1. Cross-Chain Arbitrage
Arbitrageurs capitalize on price discrepancies for the same asset across different blockchains. For instance, if a token is priced lower on Ethereum than on Binance Smart Chain (BSC), a trader can buy the token on Ethereum, bridge it to BSC, and sell it at a higher price, profiting from the difference. This process requires efficient cross-chain bridges and rapid transaction execution to minimize risks associated with price volatility and bridge delays.
2. Bridge Exploitation
Cross-chain bridges facilitate asset transfers between blockchains but can introduce vulnerabilities. MEV extractors may exploit these by timing transactions to benefit from bridge delays or by manipulating the state of the bridge to their advantage. For example, initiating a transaction that affects the price of an asset on one chain and then quickly executing a corresponding transaction on another chain before the price adjustment propagates can yield profits.
3. Multi-Domain Liquidations
In DeFi lending platforms, when a borrower's collateral falls below a certain threshold, their position can be liquidated. MEV extractors monitor these positions across chains and act swiftly to liquidate undercollateralized positions, earning liquidation bonuses. This requires real-time data analysis and rapid cross-chain transaction capabilities.
4. Sequence-Dependent Arbitrage
This strategy involves executing a series of transactions across multiple chains where the success of later transactions depends on the outcomes of earlier ones. For instance, a trader might perform a swap on Chain A that affects the price of an asset, then immediately execute a trade on Chain B that benefits from the new price. The non-atomic nature of cross-chain transactions introduces risks, as any delay or failure in the sequence can lead to losses.
5. Private Mempool Exploitation
Some MEV strategies involve using private transaction pools to hide pending transactions from the public mempool, preventing other traders from front-running or sandwiching them. By submitting transactions directly to validators or using specialized relays, MEV extractors can gain an advantage in transaction ordering, especially in cross-chain operations where timing is critical.
Understanding these mechanisms is crucial for developers, users, and regulators to mitigate potential risks and ensure fair and efficient blockchain ecosystems. As MEV strategies continue to evolve, staying informed about these extraction methods will be essential for navigating the decentralized finance landscape.
Real-World Examples & Implications of Cross-Chain MEV
Below are examples of cross-chain MEV exploits.
1. Wormhole Bridge Exploit (2022)
In February 2022, the Wormhole bridge, facilitating asset transfers between Ethereum and Solana, suffered a significant exploit. An attacker managed to mint 120,000 wrapped ETH (wETH) on Solana without proper collateralization, leading to a loss of approximately $320 million. This incident underscored the vulnerabilities inherent in cross-chain bridges and highlighted how such weaknesses can be exploited for MEV
2. Cross-Chain Arbitrage Opportunities
Traders have capitalized on price discrepancies of identical assets across different blockchains. For instance, a token might trade at $10 on Ethereum and $9.50 on Polygon. Arbitrageurs can buy the token on Polygon and sell it on Ethereum, profiting from the difference. Such opportunities arise due to fragmented liquidity and varying demand across chains.
3. Multi-Chain Liquidations
In decentralized lending platforms operating across multiple chains, borrowers might post collateral on one chain and take loans on another. If the collateral's value drops, liquidators can act swiftly across chains to liquidate positions, earning profits. This cross-chain activity introduces complexities and potential MEV extraction points.
Implications
1. Market Efficiency vs. User Fairness
While cross-chain MEV activities like arbitrage can enhance market efficiency by aligning prices across platforms, they can also disadvantage regular users. For example, sandwich attacks can lead to users receiving worse trade prices, eroding trust in decentralized platforms.
2. Centralization Concerns
The tools and infrastructure required to exploit cross-chain MEV are often accessible only to well-resourced entities. This concentration can lead to centralization, where a few players dominate MEV extraction, contradicting the decentralized ethos of blockchain technology.
3. Security Risks
Cross-chain operations rely heavily on bridges, which have become prime targets for exploits. As seen with the Wormhole incident, vulnerabilities in these bridges can lead to massive financial losses and destabilize the broader ecosystem.
4. Regulatory Scrutiny
The opaque nature of MEV activities, especially those that can be perceived as manipulative, may attract regulatory attention. Ensuring transparency and fairness in cross-chain operations is crucial to preempt potential regulatory challenges.
Potential Solutions & Ethical Considerations
There are a number of ways cross-chain MEV can be made harder.
- Enhance Bridging Mechanisms: Traditional cross-chain bridges often suffer from latency and security vulnerabilities, making them prime targets for MEV exploitation. Emerging solutions aim to optimize block confirmations and enable faster transaction finality. For instance, integrating Layer-2 solutions like rollups can batch transactions, reducing fees and time-to-finality, thereby making cross-chain MEV strategies more cost-effective and less susceptible to manipulation.
- Use Private Transaction Relays: Platforms like Flashbots have introduced private relay systems where users can submit transactions privately, avoiding public mempool exploitation. This approach significantly reduces front-running and sandwich attacks. However, the reliance on centralized relays has raised concerns about centralization risks, prompting discussions on decentralizing such systems through initiatives like SUAVE (Single Unified Auction for Value Extraction).
- Implement Atomic Cross-Chain Transactions: Implementing atomic swaps ensures that cross-chain transactions either execute fully or not at all, eliminating the risk of partial execution that can be exploited for MEV. While challenging to implement due to differing consensus mechanisms across chains, advancements in this area could significantly reduce MEV opportunities.
- Decentralized Order Books: By eliminating intermediaries, decentralized order books allow users to interact directly with the order book, enhancing transparency and reducing the risk of MEV exploits. This approach empowers users and diminishes the advantages held by entities with privileged access.
The Future of Cross-Chain MEV
As the blockchain ecosystem continues to evolve, cross-chain MEV is poised to become a significant factor influencing the dynamics of decentralized finance (DeFi). The interplay between technological advancements, regulatory developments, and ethical considerations will shape the trajectory of cross-chain MEV.
Below we explore some of the potential ways cross-chain MEV can evolve.
Expansion of Interoperable Protocols
The growth of interoperability protocols like Polkadot and Cosmos is facilitating seamless communication between disparate blockchain networks. These platforms enable cross-chain transactions and data sharing, thereby expanding the landscape for MEV opportunities. As more blockchains become interconnected, the complexity and volume of cross-chain MEV activities are expected to increase.
Integration of AI and Automation
The incorporation of artificial intelligence (AI) and automation into DeFi platforms is enhancing the efficiency of MEV extraction. AI-driven tools can analyze vast datasets to identify arbitrage opportunities across chains in real-time, enabling quicker and more precise execution of MEV strategies. This technological integration is likely to democratize access to MEV opportunities, allowing a broader range of participants to engage in these activities.
Fighting Back: Cross-Chain MEV Mitigation Strategies
While the trend of cross-chain MEV is likely to grow, there are a number of counter movements to try and limit cross-chain MEV.
Developers are exploring various mitigation strategies. These include the implementation of encrypted mempools to prevent front-running, the adoption of fair sequencing protocols to ensure equitable transaction ordering, and the development of decentralized builders to reduce reliance on centralized entities. Such measures aim to enhance the security and fairness of cross-chain transactions.
Anticipated Regulatory Oversight
As cross-chain MEV activities become more prevalent, regulatory bodies are likely to scrutinize these practices more closely. The potential for MEV strategies to impact market fairness and integrity may prompt the introduction of regulations aimed at ensuring transparency and protecting investors. Stakeholders in the blockchain space should proactively engage with regulators to shape policies that balance innovation with ethical considerations.
Use an MEV Protected DEX
CoW Swap is a meta DEX aggregator that finds the best prices for trades and provides comprehensive MEV protection. The protocol uses a unique trading mechanism that relies on batch auctions and intents to achieve the best outcomes for users.
Thanks to a powerful combination of delegated trade execution, batch auctions, and protected transaction flow through MEV Blocker, CoW Swap users benefit from thorough MEV protection on all trades.
It also exists on multiple chains: Ethereum, Gnosis, Base and Arbitrum, helping users remain in control of their trades.
Cross-Chain MEV is likely to increase
MEV is a controversial topic within DeFi. As the industry matures, understanding MEV - and the bots that exploit it - is crucial for anyone building or trading on open financial protocols. Whether seen as opportunistic predators or necessary arbitrageurs, MEV is here to stay. The real question is how we, as a community, design systems that encourage ethical behavior while preserving the integrity of decentralized finance.
Interested in learning about MEV and what measures you can deploy to help keep yourself protected?
Check out the below.
MEV can be extracted through various strategies:
1. Arbitrage
MEV arbitrage bots identify and exploit price differences for the same asset across different decentralized exchanges or DEXes. This is also known as loss versus rebalancing. These bots look for a token price to be higher or lower on different exchanges, and then exploit the price difference between the two. Many liquidity providers haven't even heard of LVR, but it costs them 5-7% of their liquidity, resulting in hundreds of millions lost each year. In fact, when accounting for LVR, many of the largest liquidity pools are not profitable for LPs at all. Learn more about LVR/
2. Sandwich Attacks
Sandwich attacks occur when a user's transaction gets trapped, or "sandwiched," between two hostile transactions - one before and one after. As a result, the original transaction executes at a much higher price than necessary, leading to an inflated price for the original trader and a profit for the malicious trader placing the two extra trades (known as a "searcher"). Learn more about sandwich attacks.
3. Liquidation Hunting
Liquidation bots specialise in monitoring lending platforms looking for undercollateralized loans. If a borrower's collateral falls below a required threshold, these bots execute liquidation transactions to claim rewards.
4. Backrunning
Backrunning is a specific type of MEV (Maximal Extractable Value) which causes some traders to miss out on potential profit opportunities from their trades. In practice, backrunning involves strategically executing a transaction immediately after another, high-value transaction. By doing this, the backrunning transaction capitalizes on the arbitrage opportunity left over from the price impact of the initial transaction. Learn more about backrunning.
Implications for the Blockchain Ecosystem
While MEV can contribute to market efficiency through arbitrage, it also poses challenges:
- User Experience: MEV strategies can lead to unfavorable trade outcomes for regular users, such as increased slippage or failed transactions.
- Network Fairness: The ability of certain participants to extract additional value can create an uneven playing field
- Security Concerns: Unchecked MEV practices may incentivize behaviors that threaten the integrity and security of the blockchain network.
The Rise of Cross-Chain MEV
As the blockchain ecosystem expanded beyond Ethereum, incorporating various Layer 1 and Layer 2 networks, MEV opportunities transcended single-chain boundaries. Cross-chain MEV refers to the extraction of value by exploiting inefficiencies across multiple blockchains, often involving complex strategies that span different networks.
Several factors contributed to the emergence of cross-chain MEV:
- Interconnected DeFi Ecosystems: The proliferation of decentralized finance (DeFi) platforms across various blockchains created fragmented liquidity pools. This fragmentation led to price discrepancies for identical assets on different chains, presenting arbitrage opportunities for sophisticated actors.
- Bridge Mechanisms: Cross-chain bridges, essential for transferring assets between blockchains, often introduce latency and security vulnerabilities. These characteristics can be exploited for MEV through strategies like latency arbitrage and bridge manipulation.
- Non-Atomic Transactions: Unlike single-chain transactions, cross-chain operations lack atomicity, meaning that the execution of transactions on different chains cannot be guaranteed to occur simultaneously. This non-atomic nature increases the complexity and risk associated with cross-chain MEV strategies.
Implications and Challenges
The evolution of MEV into cross-chain contexts introduces several implications and challenges:
- Increased Complexity: Cross-chain MEV strategies require advanced technical knowledge and infrastructure, limiting participation to well-resourced entities and potentially exacerbating centralization concerns.
- Security Risks: The reliance on bridges and the non-atomic nature of cross-chain transactions increase the attack surface for malicious actors, posing significant security risks to the broader ecosystem.
- Regulatory Considerations: As MEV strategies become more complex and widespread, they may attract regulatory scrutiny, particularly if they are perceived to undermine market fairness or consumer protection.
Mechanisms of Cross-Chain MEV Extraction
Cross-chain MEV involves exploiting inefficiencies and opportunities across multiple blockchain networks. As decentralized finance (DeFi) ecosystems expand, the complexity and variety of MEV extraction methods have grown. Below are the primary mechanisms through which MEV is extracted in cross-chain contexts:
1. Cross-Chain Arbitrage
Arbitrageurs capitalize on price discrepancies for the same asset across different blockchains. For instance, if a token is priced lower on Ethereum than on Binance Smart Chain (BSC), a trader can buy the token on Ethereum, bridge it to BSC, and sell it at a higher price, profiting from the difference. This process requires efficient cross-chain bridges and rapid transaction execution to minimize risks associated with price volatility and bridge delays.
2. Bridge Exploitation
Cross-chain bridges facilitate asset transfers between blockchains but can introduce vulnerabilities. MEV extractors may exploit these by timing transactions to benefit from bridge delays or by manipulating the state of the bridge to their advantage. For example, initiating a transaction that affects the price of an asset on one chain and then quickly executing a corresponding transaction on another chain before the price adjustment propagates can yield profits.
3. Multi-Domain Liquidations
In DeFi lending platforms, when a borrower's collateral falls below a certain threshold, their position can be liquidated. MEV extractors monitor these positions across chains and act swiftly to liquidate undercollateralized positions, earning liquidation bonuses. This requires real-time data analysis and rapid cross-chain transaction capabilities.
4. Sequence-Dependent Arbitrage
This strategy involves executing a series of transactions across multiple chains where the success of later transactions depends on the outcomes of earlier ones. For instance, a trader might perform a swap on Chain A that affects the price of an asset, then immediately execute a trade on Chain B that benefits from the new price. The non-atomic nature of cross-chain transactions introduces risks, as any delay or failure in the sequence can lead to losses.
5. Private Mempool Exploitation
Some MEV strategies involve using private transaction pools to hide pending transactions from the public mempool, preventing other traders from front-running or sandwiching them. By submitting transactions directly to validators or using specialized relays, MEV extractors can gain an advantage in transaction ordering, especially in cross-chain operations where timing is critical.
Understanding these mechanisms is crucial for developers, users, and regulators to mitigate potential risks and ensure fair and efficient blockchain ecosystems. As MEV strategies continue to evolve, staying informed about these extraction methods will be essential for navigating the decentralized finance landscape.
Real-World Examples & Implications of Cross-Chain MEV
Below are examples of cross-chain MEV exploits.
1. Wormhole Bridge Exploit (2022)
In February 2022, the Wormhole bridge, facilitating asset transfers between Ethereum and Solana, suffered a significant exploit. An attacker managed to mint 120,000 wrapped ETH (wETH) on Solana without proper collateralization, leading to a loss of approximately $320 million. This incident underscored the vulnerabilities inherent in cross-chain bridges and highlighted how such weaknesses can be exploited for MEV
2. Cross-Chain Arbitrage Opportunities
Traders have capitalized on price discrepancies of identical assets across different blockchains. For instance, a token might trade at $10 on Ethereum and $9.50 on Polygon. Arbitrageurs can buy the token on Polygon and sell it on Ethereum, profiting from the difference. Such opportunities arise due to fragmented liquidity and varying demand across chains.
3. Multi-Chain Liquidations
In decentralized lending platforms operating across multiple chains, borrowers might post collateral on one chain and take loans on another. If the collateral's value drops, liquidators can act swiftly across chains to liquidate positions, earning profits. This cross-chain activity introduces complexities and potential MEV extraction points.
Implications
1. Market Efficiency vs. User Fairness
While cross-chain MEV activities like arbitrage can enhance market efficiency by aligning prices across platforms, they can also disadvantage regular users. For example, sandwich attacks can lead to users receiving worse trade prices, eroding trust in decentralized platforms.
2. Centralization Concerns
The tools and infrastructure required to exploit cross-chain MEV are often accessible only to well-resourced entities. This concentration can lead to centralization, where a few players dominate MEV extraction, contradicting the decentralized ethos of blockchain technology.
3. Security Risks
Cross-chain operations rely heavily on bridges, which have become prime targets for exploits. As seen with the Wormhole incident, vulnerabilities in these bridges can lead to massive financial losses and destabilize the broader ecosystem.
4. Regulatory Scrutiny
The opaque nature of MEV activities, especially those that can be perceived as manipulative, may attract regulatory attention. Ensuring transparency and fairness in cross-chain operations is crucial to preempt potential regulatory challenges.
Potential Solutions & Ethical Considerations
There are a number of ways cross-chain MEV can be made harder.
- Enhance Bridging Mechanisms: Traditional cross-chain bridges often suffer from latency and security vulnerabilities, making them prime targets for MEV exploitation. Emerging solutions aim to optimize block confirmations and enable faster transaction finality. For instance, integrating Layer-2 solutions like rollups can batch transactions, reducing fees and time-to-finality, thereby making cross-chain MEV strategies more cost-effective and less susceptible to manipulation.
- Use Private Transaction Relays: Platforms like Flashbots have introduced private relay systems where users can submit transactions privately, avoiding public mempool exploitation. This approach significantly reduces front-running and sandwich attacks. However, the reliance on centralized relays has raised concerns about centralization risks, prompting discussions on decentralizing such systems through initiatives like SUAVE (Single Unified Auction for Value Extraction).
- Implement Atomic Cross-Chain Transactions: Implementing atomic swaps ensures that cross-chain transactions either execute fully or not at all, eliminating the risk of partial execution that can be exploited for MEV. While challenging to implement due to differing consensus mechanisms across chains, advancements in this area could significantly reduce MEV opportunities.
- Decentralized Order Books: By eliminating intermediaries, decentralized order books allow users to interact directly with the order book, enhancing transparency and reducing the risk of MEV exploits. This approach empowers users and diminishes the advantages held by entities with privileged access.
The Future of Cross-Chain MEV
As the blockchain ecosystem continues to evolve, cross-chain MEV is poised to become a significant factor influencing the dynamics of decentralized finance (DeFi). The interplay between technological advancements, regulatory developments, and ethical considerations will shape the trajectory of cross-chain MEV.
Below we explore some of the potential ways cross-chain MEV can evolve.
Expansion of Interoperable Protocols
The growth of interoperability protocols like Polkadot and Cosmos is facilitating seamless communication between disparate blockchain networks. These platforms enable cross-chain transactions and data sharing, thereby expanding the landscape for MEV opportunities. As more blockchains become interconnected, the complexity and volume of cross-chain MEV activities are expected to increase.
Integration of AI and Automation
The incorporation of artificial intelligence (AI) and automation into DeFi platforms is enhancing the efficiency of MEV extraction. AI-driven tools can analyze vast datasets to identify arbitrage opportunities across chains in real-time, enabling quicker and more precise execution of MEV strategies. This technological integration is likely to democratize access to MEV opportunities, allowing a broader range of participants to engage in these activities.
Fighting Back: Cross-Chain MEV Mitigation Strategies
While the trend of cross-chain MEV is likely to grow, there are a number of counter movements to try and limit cross-chain MEV.
Developers are exploring various mitigation strategies. These include the implementation of encrypted mempools to prevent front-running, the adoption of fair sequencing protocols to ensure equitable transaction ordering, and the development of decentralized builders to reduce reliance on centralized entities. Such measures aim to enhance the security and fairness of cross-chain transactions.
Anticipated Regulatory Oversight
As cross-chain MEV activities become more prevalent, regulatory bodies are likely to scrutinize these practices more closely. The potential for MEV strategies to impact market fairness and integrity may prompt the introduction of regulations aimed at ensuring transparency and protecting investors. Stakeholders in the blockchain space should proactively engage with regulators to shape policies that balance innovation with ethical considerations.
Use an MEV Protected DEX
CoW Swap is a meta DEX aggregator that finds the best prices for trades and provides comprehensive MEV protection. The protocol uses a unique trading mechanism that relies on batch auctions and intents to achieve the best outcomes for users.
Thanks to a powerful combination of delegated trade execution, batch auctions, and protected transaction flow through MEV Blocker, CoW Swap users benefit from thorough MEV protection on all trades.
It also exists on multiple chains: Ethereum, Gnosis, Base and Arbitrum, helping users remain in control of their trades.
Cross-Chain MEV is likely to increase
MEV is a controversial topic within DeFi. As the industry matures, understanding MEV - and the bots that exploit it - is crucial for anyone building or trading on open financial protocols. Whether seen as opportunistic predators or necessary arbitrageurs, MEV is here to stay. The real question is how we, as a community, design systems that encourage ethical behavior while preserving the integrity of decentralized finance.
Interested in learning about MEV and what measures you can deploy to help keep yourself protected?
Check out the below.
