MEV (maximal extractable value)
MEV
Value an entity ordering transactions in a block can extract from rearranging, inserting, or censoring them.
For stablecoin trades, MEV typically appears as front-running / sandwich attacks on DEX swaps. Aggregators (1inch, CoW Swap, Uniswap X) and private orderflow channels (Flashbots Protect) reduce exposure. MEV is a cost paid out of LP and trader returns.
Related terms
- Sandwich attackA two-leg MEV exploit — front-run a victim's swap with a buy, let it execute at worse price, back-run with a sell.
- SlippageDifference between expected and realised execution price — caused by pool depth + competing fills.
- Flash loanAn uncollateralised loan that must be borrowed and repaid in the same transaction — atomic, or it reverts.