@zhongwuyan
MEV Beginner's Guide
What is MEV?
MEV (Maximal Extractable Value) refers to hidden profits extracted by miners or arbitrageurs through manipulating transaction ordering on blockchains. It manifests in two forms:
Arbitrage: Exploiting price differences across decentralized exchanges (DEXs). For example, using flash loans (uncollateralized loans repaid within one block) to borrow $1M, profit from price gaps, and repay instantly.
Sandwich Attacks: Detecting large pending orders → front-running them to buy low → pumping the price → forcing victims to buy high → dumping immediately.