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Glossary

MEV

Maximal extractable value: the profit a block proposer (or aligned searcher) can capture by reordering, inserting, or censoring transactions in a block.

MEV is the surplus a block producer can pull out of the order flow they control. Classic examples: sandwiching a large DEX swap with a buy-then-sell, back-running a liquidation, or front-running an NFT mint.

Because the producer chooses transaction order, MEV is structural — it cannot be eliminated, only redistributed. Tooling like Flashbots, proposer-builder separation (PBS), and encrypted mempools tries to make the extraction more competitive and less harmful to users.