New to MEV?
What is MEV?
Maximal Extractable Value (MEV) refers to the value that can be extracted from the ordering, censorship, or insertion of transactions within a block or blocks being created.
This is done by independent network participants known as “searchers'' who search for profitable situations in the blockchain using the mempool. Then searchers create bundles of transactions that include their own transactions, which are sent to block builders. Searchers create high-frequency trading bots that use blockchain data and complex algorithms to detect profitable MEV opportunities in the mempool.
Block builders can have their own strategies to find MEV working as a searcher but are ultimately the ones who compile block bundles into blocks and send them to relays. The blocks pay in sort of a bidding fashion to get into the blockchain, with the auction ending at the end of the 12 second block time and the highest bidder winning. Relays then enable block builders’ blocks to be securely proposed through validators.
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