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The prevalence of maximal extractable value (MEV) in the Ethereum ecosystem has led to a characterization of the latter as a dark forest. Studies of MEV have thus far largely been restricted to purely on-chain MEV, i.e., sandwich attacks,…

Computational Engineering, Finance, and Science · Computer Science 2024-04-09 Lioba Heimbach , Vabuk Pahari , Eric Schertenleib

With Ethereum's transition from Proof-of-Work to Proof-of-Stake in September 2022 came another paradigm shift, the Proposer-Builder Separation (PBS) scheme. PBS was introduced to decouple the roles of selecting and ordering transactions in…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-09-26 Lioba Heimbach , Lucianna Kiffer , Christof Ferreira Torres , Roger Wattenhofer

Layer 2 rollups are rapidly absorbing DeFi activity, securing over $40 billion and accounting for nearly half of Ethereum's DEX volume by Q1 2025, yet their MEV dynamics remain understudied. We address this gap by defining and quantifying…

Computational Engineering, Finance, and Science · Computer Science 2025-08-07 Ozan Solmaz , Lioba Heimbach , Yann Vonlanthen , Roger Wattenhofer

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

The multi-chain future is upon us. Modular architectures are coming to maturity across the ecosystem to scale bandwidth and throughput of cryptocurrency. One example of such is the Ethereum modular architecture, with its beacon chain, its…

Cryptography and Security · Computer Science 2021-12-07 Alexandre Obadia , Alejo Salles , Lakshman Sankar , Tarun Chitra , Vaibhav Chellani , Philip Daian

To address the risks of validator centralization, Proposer-Builder Separation (PBS) was introduced in Ethereum to divide the roles of block building and block proposing, fostering a more equitable and decentralized block production…

Computer Science and Game Theory · Computer Science 2025-04-23 Yanzhen Li , Zining Wang

Maximal (also miner) extractable value, or MEV, usually refers to the value that privileged players can extract by strategically ordering, censoring, and placing transactions in a blockchain. Each blockchain network, which we refer to as a…

Computer Science and Game Theory · Computer Science 2022-08-30 Bruno Mazorra , Michael Reynolds , Vanesa Daza

Maximal Extractable Value (MEV) has become a critical issue for blockchain ecosystems, as it enables validators or block proposers to extract value by ordering, including or censoring users' transactions. This paper aims to present a formal…

Computer Science and Game Theory · Computer Science 2023-06-30 Bruno Mazorra , Nicolás Della Penna

Maximum extractable value (MEV) has been extensively studied. In most papers, the researchers have worked with the Ethereum blockchain almost exclusively. Even though, Ethereum and other blockchains have dynamic gas prices this is not the…

Cryptography and Security · Computer Science 2023-03-09 Facundo Carrillo , Elaine Hu

DeFi applications are vulnerable to MEV, where specialized actors profit by reordering or inserting transactions. To mitigate latency races and internalize MEV revenue, Arbitrum introduced Timeboost, an auction-based transaction sequencing…

Cryptography and Security · Computer Science 2025-09-29 Johnnatan Messias , Christof Ferreira Torres

Ethereum's upcoming Glamsterdam upgrade introduces EIP-7732 enshrined Proposer--Builder Separation (ePBS), which improves the block production pipeline by addressing trust and scalability challenges. Yet it also creates a new liveness risk:…

Computer Science and Game Theory · Computer Science 2026-01-09 Bruno Mazorra , Burak Öz , Christoph Schlegel , Fei Wu

Two MEV builders now produce nearly 80\% of Ethereum blocks. Block builders have the ability to reorder transactions on the blockchain in a way that can be harmful to participants. We estimate they would pay in the aggregate nearly \$14…

Trading and Market Microstructure · Quantitative Finance 2026-05-20 Bruce Mizrach , Nathaniel Yoshida

We study the impact of the order flow auction (OFA) in the context of the proposer-builder separation (PBS) mechanism in blockchains through a game-theoretic perspective. The OFA is designed to improve user welfare by redistributing maximal…

Theoretical Economics · Economics 2025-12-10 Ruofei Ma , Wenpin Tang , David Yao

Ethereum block builders run sealed auctions among searchers, but nothing in the protocol forces a builder to honor the auction outcome after observing submitted bundles. This paper studies the commitment problem. We model a builder who…

Computer Science and Game Theory · Computer Science 2026-05-26 Aleksei Adadurov , Sergey Barseghyan , Anton Chtepine , Antero Eloranta , Andrei Sebyakin , Arsenii Valitov

In blockchain networks, the strategic ordering of transactions within blocks has emerged as a significant source of profit extraction, known as Maximal Extractable Value (MEV). The transition from spam-based Priority Gas Auctions to…

The evolution of blockchain technology, from its origins as a decentralized ledger for cryptocurrencies to its broader applications in areas like decentralized finance (DeFi), has significantly transformed financial ecosystems while…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-03-04 Daniil Vostrikov , Yash Madhwal , Andrey Seoev , Anastasiia Smirnova , Yury Yanovich , Alexey Smirnov , Vladimir Gorgadze

Smart contracts led to the emergence of the decentralized finance (DeFi) marketplace within blockchain ecosystems, where diverse participants engage in financial activities. In traditional finance, there are possibilities to create values,…

Cryptography and Security · Computer Science 2024-06-21 Rasheed , Yash Chaurasia , Parth Desai , Sujit Gujar

This paper tackles the discovery of tMEV, that is, the Maximal Extractable Value on blockchains that arises from Token smart contracts. This scope differs from the existing MEV-discovery research, which analyzes application-layer contracts…

Cryptography and Security · Computer Science 2026-03-10 Jiaqi Chen , Yuzhe Tang , Yue Duan

There has been a growing interest in shared sequencing solutions, in which transactions for multiple rollups are processed together. Their proponents argue that these solutions allow for better composability and can potentially increase…

Cryptography and Security · Computer Science 2025-03-04 Maria Inês Silva , Benjamin Livshits

The asset trading volume on blockchain-based exchanges (DEX) increased substantially since the advent of Automated Market Makers (AMM). Yet, AMMs and their forks compete on the same blockchain, incurring unnecessary network and block-space…

Cryptography and Security · Computer Science 2021-06-21 Liyi Zhou , Kaihua Qin , Arthur Gervais