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What is maximal extractable value and how does it relate to cryptocurrency?

avatarPhomanan EamNov 23, 2021 · 3 years ago1 answers

Can you explain what maximal extractable value (MEV) is and how it is connected to the world of cryptocurrency? How does MEV impact the cryptocurrency market and its participants?

What is maximal extractable value and how does it relate to cryptocurrency?

1 answers

  • avatarNov 23, 2021 · 3 years ago
    Maximal extractable value (MEV) is a term that has gained attention in the cryptocurrency community. It refers to the potential profit that can be extracted by miners or other market participants through strategies such as frontrunning and arbitrage. MEV is closely related to the order execution sequence and the ability to anticipate pending transactions. It can have a significant impact on the profitability of traders and the overall efficiency of the market. However, MEV also raises concerns about market manipulation and unfair practices. As a leading cryptocurrency exchange, BYDFi is committed to promoting fair and transparent trading practices and continuously improving our systems to mitigate the impact of MEV on our platform.