Ethereum MEV bots have captured more than $1 million in profit from 11,640 trades executed in a single day, according to data from eigenphi.io.
MEV is the highest amount that can be recovered from block production above and beyond the usual block reward and gas fees by including, omitting, and rearranging transactions in a block.
MEV robots They can use various strategies, such as initial execution, subsequent execution, arbitrage, and settlement, to benefit from the information and influence they have over the order of transactions.
One of the most common and lucrative MEV strategies is the sandwich attackwhich involves placing a transaction before and after a victim’s trade in the same block, manipulating the price of an asset in favor of the attacker.
By data from the token flow-oriented data platform eigenphi.io, sandwich attacks accounted for $940,000 of total MEV gains on April 19.
The most successful MEV bot of the day was controlled by jaredfromsubway.eth, a pseudonymous entity that has been dominating the MEV rankings for the past few days.
The bot captured a win of over $710,000 on April 19 after capturing $950,000 the day before to rack up a cumulative win of over $2.3 million.
MEV Bots Stringing the Ethereum Network
The rise of MEV bots has raised concerns about the security and fairness of Ethereum, as they can potentially harm users by increasing gas fees, early transactions, and network congestion.
(embed)https://www.youtube.com/watch?v=lvD9ffgZEYs(/embed)
Several initiatives have been proposed to mitigate or redistribute MEV, such as Flashbots, MEV-Boost, and Fair Ordering Services.
Flashbots is a research and development organization that aims to democratize MEV mining and reduce its negative externalities.
MEV-Boost implements proposer-builder separation (PBS) for Ethereum PoS, allowing validators to access blocks from a builder marketplace that produces blocks containing the transaction order flow and a fee for the validator proposing the block.
On the other hand, fair ordering services are protocols that provide a fair and transparent way to order transactions on ethereum, such as the Eden Network and Archer DAO.
However, MEV is likely to remain a persistent phenomenon on Ethereum and other blockchains, as it is inherent in the nature of decentralized systems.
Many feel that as long as there are arbitrage opportunities and market inefficiencies, players will seek to exploit them for profit.
