MEV stands for “Miner Extractable Value” or “Maximal Extractable Value”. It refers to the process of extracting value from Ethereum users by reordering, inserting, and censoring transactions within blocks.
To date more than USD 606 Million in value has been extracted from users by bots frontrunning transactions, exploiting the slippage users allow in a trade.
The term “MEV” refers to “Miner Extractable Value” or “Maximal Extractable Value” and describes the profits that can be obtained by reordering, inserting, or censoring Ethereum transactions in blocks being produced. It typically impacts decentralized finance (Defi) protocol users interacting with automated market makers and other applications.
For every transaction on the Ethereum network, users pay an unseen tax in the form of computational processing power.
How to avoid MEV attacks?
CoW Swap is the first DEX Aggregator offering some protection against it: COWs enable tight slippages and can even avoid settlement on AMMs altogether. CoW Swap’s name comes from the economic phenomenon “Coincidence of Wants”, where users’ orders can be matched with each other to obtain better prices. When the protocol finds a CoW, trades are directly settled among traders, which allows saving on slippage, gas, and LP fees. The network effect of CoWs increases alongside with the number of traders using the protocol; the more users we have sending orders to the protocol, the better the prices and gas savings the protocol is able to offer. Click on the link below to beat MEV:
CoW Swap is the first trading interface built on top of CoW Protocol. It allows you to buy and sell tokens using gas-less orders that are settled peer-to-peer among its users or into any on-chain liquidity source while providing MEV protection.