MEV is a Popular Term Found in Relativity online with a Transaction that involves Astounding Amount Of profit. So What is this Strange Term By the way? and What market does a MEV Bot Fit in?
In simple terms, MEV [ Miner Extractable Value ] is the amount of profit that a crypto miner can make by reordering, front-running, Backrunning or censoring transactions in a Transaction block. MEV has become an important factor in the decentralized finance (DeFi) ecosystem, where users interact with smart contracts to execute various financial operations. In this blog, we will discuss what MEV is and how it relates to MEV trading.
What is MEV?
MEV is a term that was first introduced in a research paper published in 2019. It refers to the amount of profit that miners can extract from the transactions in a given block by manipulating the order of the transactions or censoring certain transactions.
MEV is calculated as the difference between the maximum revenue that a miner can extract from a block and the revenue that the miner would earn by simply including the transactions in the block in the order they were received.
MEV is a result of the design of the Ethereum blockchain, which allows miners to determine the order of transactions in a block.
This means that miners can prioritize transactions based on the fees offered by users, which creates an opportunity for miners to extract additional profits beyond the block rewards and transaction fees. MEV can be positive or negative, depending on the order in which transactions are included in a block.
How does MEV relate to DeFi?
DeFi is a rapidly growing ecosystem in the cryptocurrency space, where users can access various financial services without the need for intermediaries. Smart contracts are used to execute financial operations such as lending, borrowing, trading, and more. MEV has become an important factor in the DeFi ecosystem because it can significantly impact the profitability and security of smart contracts.
MEV can affect the profitability of DeFi protocols in several ways. For example, if a miner extracts MEV from a transaction by front-running a trade on a decentralized exchange, the trader may end up paying a higher price for the asset than they intended, which reduces their profits. Similarly, if a miner censors a transaction, it can prevent a user from executing a profitable trade or taking advantage of a DeFi opportunity.
MEV can also affect the security of smart contracts in the DeFi ecosystem. For example, if a miner extracts MEV by reordering transactions in a way that exploits a vulnerability in a smart contract, it can result in a loss of funds for users. This is why MEV has become a topic of concern for DeFi developers and researchers, who are working on ways to mitigate its impact on the ecosystem.
MEV trading?
This refers to the practice of using MEV to generate profits in the cryptocurrency market. MEV trading occurs in many forms, but the most common strategy is Using advanced algorithms to predicting the order of a transactions Placing Trade Just at the right Time. Traders can make profits by front-running trades, executing profitable trades before other traders can, or by exploiting vulnerabilities in smart contracts.
So what is a MEV Bot and How Does it work?
It is a Specialised Smart Contract which is programmed with a Set of Strategy to Execute a FRONTRUNNING and BACKRUNNING Transaction At The Same Time
On their Own, Frontrunning and Backrunning are MEV Trading Strategy with Huge Profit-making Potentials.
Here is an explanation of FRONTRUNNING and BACKRUNNING in General Market Terms.
FRONTRUNNING – Frontrunning is an MEV Strategy where a Broker or MEV Trader executes orders on a security for their own account while taking advantage of advance knowledge of pending orders from their clients or other market participants.
BACKRUNNING – Backrunning involves placing orders in the market after seeing large orders executed, with the expectation that the market will continue moving in the same direction.
In MEV Terms, Sandwich MEV Bot Works By Targeting a Profitable Transaction and it goes on to FRONTRUN, and then BACKRUN the Transaction at The Same Time.
HOW PROFITABLE IS A SANDWICH MEVBOT?
Every Month Sandwich MEV Trading bots Make an Average of over $1.2BN in Transaction Profit Worldwide Both on Ethereum Blockchain, Binance Smart Chains and Layer TWOs.
Here are some Examples of Profitable MEV Trades Screenshots.
This Trader Made $960,700 in Less than an HOUR Using Mevengine Sandwich MEV Bot
This Trader Made $3,122,000 in Less than an 30 Minutes Using Mevengine Sandwich MEV Bot Also.
DEPLOYING OR USING A MEV Bot
The Developers has been Winning in the past few years as MEV Bots and Crypto Mining are mainly Accessible to People With Knowledge in Technical Blockchain and Programming Skills. Does that Mean a Non Programmer Cannot Trade MEV or Use MEV Bot? NO!
Mevengine Provides a High-End Seamless MEV Bot with Outstanding Smart Contract, ready to Deploy for New Users. With Mevengine, You can Start Trading with a MEV Bot Without Any Prior Knowledge, You Can check out mevengine Sandwich MEV Bot Page Here
