English

The Specter (and Spectra) of Miner Extractable Value

Optimization and Control 2023-10-16 v2 Computer Science and Game Theory Combinatorics Computational Finance

Abstract

Miner extractable value (MEV) refers to any excess value that a transaction validator can realize by manipulating the ordering of transactions. In this work, we introduce a simple theoretical definition of the 'cost of MEV', prove some basic properties, and show that the definition is useful via a number of examples. In a variety of settings, this definition is related to the 'smoothness' of a function over the symmetric group. From this definition and some basic observations, we recover a number of results from the literature.

Keywords

Cite

@article{arxiv.2310.07865,
  title  = {The Specter (and Spectra) of Miner Extractable Value},
  author = {Guillermo Angeris and Tarun Chitra and Theo Diamandis and Kshitij Kulkarni},
  journal= {arXiv preprint arXiv:2310.07865},
  year   = {2023}
}