MEV on Ethereum: A Policy Analysis

Abstract

In cryptocurrency markets, maximal extractable value ('MEV') is typically defined as "excess profit that a miner [validator] can extract by adjusting execution of user transactions." MEV extraction has slowly been gaining broader recognition, e.g., from the Bank of International Settlements, the International Organization of Securities Commissions ("IOSCO"), and mainstream publications like Forbes. The Bank of International Settlements estimates that there has been between $550 and $650 million of total MEV volume since 2020.