DeFi Intel

What is MEV?

Plain-English explainer · Updated 2026-05-03 · By DeFi Intel

MEV is the value a block proposer (or builder) can extract by ordering, including, or censoring transactions. Originally "miner extractable value." Sources: arbitrage, sandwich attacks, liquidations, JIT liquidity, NFT sniping. Annualized at $500M-$1B+ on Ethereum.

MEV-Boost (Flashbots) decouples builders from validators: builders compete to construct the most profitable block, validators rent block space.

How it works

MEV is the value a block proposer (or builder) can extract by ordering, including, or censoring transactions. Originally "miner extractable value." Sources: arbitrage, sandwich attacks, liquidations, JIT liquidity, NFT sniping. Annualized at $500M-$1B+ on Ethereum.

MEV-Boost (Flashbots) decouples builders from validators: builders compete to construct the most profitable block, validators rent block space.

For deeper protocol-level mechanics, see the related glossary terms below or the linked DeFi Intel topic deep-dive.

Why it matters

MEV represents a tax on users — billions of dollars per year — and a centralizing force on validators (who otherwise rent block-building to a small cartel). Mitigating MEV is core to Ethereum credibility.

Real-world examples

Sandwich attacks (Wintermute searcher trades), arbitrage backruns, JIT liquidity on Uniswap v3, NFT mint sniping, liquidations on Aave.

Related terms

Go deeper

Read the full DeFi Intel topic deep-dive or browse the complete crypto glossary.

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