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Arbitrage can arise from the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price. This work systematically reviews arbitrage opportunities between Automated Market Makers…

Cryptography and Security · Computer Science 2024-06-27 Krzysztof Gogol , Johnnatan Messias , Deborah Miori , Claudio Tessone , Benjamin Livshits

We study optimal auction design for Maximum Extractable Value (MEV) auction markets on Ethereum. Using a dataset of 2.2 million transactions across three major orderflow providers, we establish three empirical regularities: extracted values…

Trading and Market Microstructure · Quantitative Finance 2026-03-18 Aleksei Adadurov , Sergey Barseghyan , Anton Chtepine , Antero Eloranta , Andrei Sebyakin , Arsenii Valitov

Traditional public blockchain systems typically had very limited transaction throughput because of the bottleneck of the consensus protocol itself. With recent advances in consensus technology, the performance limit has been greatly lifted,…

Distributed, Parallel, and Cluster Computing · Computer Science 2022-02-11 Péter Garamvölgyi , Yuxi Liu , Dong Zhou , Fan Long , Ming Wu

Ethereum clients execute transactions in a sequential order prescribed by the consensus protocol. This is a safe and conservative approach to blockchain transaction processing which forgoes running transactions in parallel even when doing…

Distributed, Parallel, and Cluster Computing · Computer Science 2019-01-31 Nadi Sarrar

Maximal Extractable Value (MEV) has become a significant incentive on blockchain networks, referring to the value captured through the manipulation of transaction execution order and strategic issuance of profit-generation transactions. We…

Cryptography and Security · Computer Science 2024-01-17 Burak Öz , Filip Rezabek , Jonas Gebele , Felix Hoops , Florian Matthes

In the context of decentralized blockchains, accurately simulating the outcome of order flow auctions (OFAs) off-chain is challenging due to adversarial sequencing, encrypted bids, and frequent state changes. Existing approaches, such as…

Computer Science and Game Theory · Computer Science 2025-03-12 Alex Watts , Davide Sinesi , Jacob Greene

How users adapt after being sandwiched remains unclear; this paper provides an empirical quantification. Using transaction level data from November 2024 to February 2025, enriched with mempool visibility and ZeroMEV labels, we track user…

Cryptography and Security · Computer Science 2025-12-22 Davide Mancino , Davide Rezzoli

Currently, Gasper, the implemented consensus protocol of Ethereum, takes between 64 and 95 slots to finalize blocks. Because of that, a significant portion of the chain is susceptible to reorgs. The possibility to capture MEV (Maximum…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-08-16 Francesco D'Amato , Luca Zanolini

High-frequency trading, in both traditional and decentralized markets, induces latency races and redundant order flow as traders spend resources to win time-sensitive opportunities. We show that auctioning artificial time priority can…

Computer Science and Game Theory · Computer Science 2026-02-17 Agostino Capponi , Brian Zhu

We describe a plausible probabilistic model for a blockchain queueing environment in which rational, profit-maximising schedulers impose adversarial disciplines on incoming messages containing a payload that encodes a state transition in a…

Probability · Mathematics 2023-02-17 Andrew W. Macpherson

Decentralized exchanges using automated market makers create arbitrage opportunities with centralized exchanges, where gas fees and transaction ordering are critical. Existing models largely overlook competition among arbitrageurs, despite…

Mathematical Finance · Quantitative Finance 2026-02-27 Xue Dong He , Chen Yang , Yutian Zhou

Maximal extractable value (MEV) in which block proposers unethically gain profits by manipulating the order in which transactions are included within a block, is a key challenge facing blockchains such as Ethereum today. Left unchecked, MEV…

Cryptography and Security · Computer Science 2024-05-16 Yifan Mao , Mengya Zhang , Shaileshh Bojja Venkatakrishnan , Zhiqiang Lin

Maximal Extractable Value (MEV) represents a pivotal challenge within the Ethereum ecosystem; it impacts the fairness, security, and efficiency of both Layer 1 (L1) and Layer 2 (L2) networks. MEV arises when miners or validators manipulate…

Cryptography and Security · Computer Science 2025-01-28 Zeinab Alipanahloo , Abdelhakim Senhaji Hafid , Kaiwen Zhang

A rollup network is a type of popular "Layer 2" scaling solution for general purpose "Layer 1" blockchains like Ethereum. Rollups networks separate execution of transactions from other aspects like consensus, processing transactions off of…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-04-01 Francisco Gomes Figueira , Martin Derka , Ching Lun Chiu , Jan Gorzny

We analyze 15,097 blocks proposed for inclusion in Ethereum's blockchain over an eight-minute window on December 3, 2024, during which 38 blocks were added to the chain. We classify transactions as exclusive -- appearing only in blocks from…

Cryptography and Security · Computer Science 2025-11-17 Vabuk Pahari , Andrea Canidio

Layer-2 (L2) blockchains inherit Ethereums security guarantees while reducing gas fees. As a result, they are gaining traction among traders at Automated Market Makers (AMMs), sparking debate over whether they contribute to liquidity…

Computational Engineering, Finance, and Science · Computer Science 2025-03-14 Krzysztof Gogol , Manvir Schneider , Claudio Tessone , Benjamin Livshits

Late 2023 witnessed significant user activity on EVM chains, resulting in a surge in transaction activity and putting many rollups into the first live test. While some rollups performed well, some others experienced downtime during this…

Cryptography and Security · Computer Science 2024-04-18 Krzysztof Gogol , Johnnatan Messias , Maria Ines Silva , Benjamin Livshits

Recently, Decentralized Finance (DeFi) platforms on Ethereum are booming, and numerous traders are trying to capitalize on the opportunity for maximizing their benefits by launching front-running attacks and extracting Miner Extractable…

Cryptography and Security · Computer Science 2022-08-08 Xingyu Lyu , Mengya Zhang , Xiaokuan Zhang , Jianyu Niu , Yinqian Zhang , Zhiqiang Lin

Transaction fee markets are essential components of blockchain economies, as they resolve the inherent scarcity in the number of transactions that can be added to each block. In early blockchain protocols, this scarcity was resolved through…

Computer Science and Game Theory · Computer Science 2022-12-16 Stefanos Leonardos , Daniël Reijsbergen , Barnabé Monnot , Georgios Piliouras

We present a comprehensive analysis of the implications of artificial latency in the Proposer-Builder Separation framework on the Ethereum network. Focusing on the MEV-Boost auction system, we analyze how strategic latency manipulation…

Computer Science and Game Theory · Computer Science 2024-01-12 Umberto Natale , Michael Moser