Guide

What Is MEV? The 'Invisible Fee' From Transaction Ordering

What Is MEV? The 'Invisible Fee' From Transaction Ordering
Photo: BalticServers.com / CC BY-SA 3.0

Bottom line: profit from how transactions are ordered

MEV (Maximal Extractable Value) is the profit available to whoever decides the order of transactions in a block, by reordering or inserting transactions.

Key points

- Transactions aren't instant; they're ordered into blocks

- Manipulating that order can extract value

- On a DEX it can give users worse prices

What Is MEV? The 'Invisible Fee' From Transaction Ordering
Photo: Ingo Dierking / CC BY-SA 4.0

Common examples

  • Front-running — seeing your large order and trading ahead of it
  • Sandwich attacks — placing trades just before and after yours to profit from the price move

Impact on ordinary users

An "invisible cost"

MEV can surface as slippage (a worse fill than expected). For large DEX trades, tightening your slippage tolerance helps.

Not financial advice

This article is for information only and is not investment advice. Crypto assets are volatile and carry risks including hacking. Do your own research and only use money you can afford to lose.

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This article is informational only and is not financial, investment, or trading advice. Prices are reference snapshots and may be outdated. Always do your own research.