MEV and me

Ethereum’s core insight was that flexible smart contracts allow developers to explore a new frontier of permissionless applications. The explosive growth of decentralized financial protocols built on Ethereum (“DeFi”) is a glimpse at what this innovation could enable in the future. Like programming libraries in the first Internet revolution, DeFi’s “money legos” enable developers to build complex systems by composing and remixing simple building blocks. This complexity also brings novel risks. One of these risks is Miner Extractable Value, or MEV. The concept of MEV was first introduced by Phil Daian in “Flash Boys 2.0,” and more recently popularized by my colleagues Dan Robinson, Georgios Konstantopoulos, and samczsun in “Ethereum is a Dark Forest” and “Escaping the Dark Forest.” It has become a foundational concept in cryptoeconomics, but what actually is MEV? What are the implications for permissionless blockchains? MEV is a measure of the profit a miner (or validator, sequencer, et

MEV and me 02.05.2021 By Charlie Noyes [L] Listen [S] Share Link , Markdown , X , LinkedIn Ethereum’s core insight was that flexible smart contracts allow developers to explore a new frontier of permissionless applications. The explosive growth of decentralized financial protocols built on Ethereum (“DeFi”) is a glimpse at what this innovation could enable in the future. Like programming libraries in the first Internet revolution, DeFi’s “money legos” enable developers to build complex systems by composing and remixing simple building blocks. This complexity also brings novel risks. One of the

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