MEV Explained: How Validators Extract Value From Your Transactions
MEV (Maximal Extractable Value) allows miners and validators to profit by reordering transactions. Here is how it works and how it affects you.
MEV (Maximal Extractable Value) refers to the extra value that validators and searchers extract from blockchain transactions by controlling transaction ordering within a block. In 2025, MEV extraction on Ethereum exceeded $1 billion. Understanding MEV is essential for any serious DeFi user — it explains why large trades get front-run and why Steyble uses MEV protection.
How MEV Works
- Searchers: bots monitoring the mempool (pending transactions) for profitable opportunities
- Front-running: if a searcher sees your large swap, they can insert their own transaction first to profit
- Sandwich attack: buy before your trade (raising price), you buy at higher price, sell after your trade (at profit)
- Arbitrage MEV: searchers profit by correcting price discrepancies between DEXs — generally user-neutral
- Liquidation MEV: searchers monitor undercollateralised DeFi positions and race to liquidate for the bonus
MEV-Boost and Proposer-Builder Separation
- MEV-Boost: infrastructure allowing Ethereum validators to outsource block building to specialised builders
- Builders compete: multiple builders construct optimal blocks and bid to validators to use their block
- Validators earn more: MEV-Boost increases validator income by 15-30% — this is why Jito includes MEV on Solana
- OFAC compliance: some builders exclude OFAC-sanctioned transactions — centralisation concern for Ethereum neutrality
- Flashbots: original MEV research organisation — now major block builder and MEV-Boost creator
Protecting Yourself From MEV
Steyble uses MEV protection by default: private transaction routing that bypasses the public mempool, preventing sandwich attacks on your swaps. For large swaps ($10k+), Steyble automatically routes through protected RPC endpoints where transactions are submitted directly to block builders rather than the public mempool. For Solana, Jito's MEV infrastructure actually benefits stakers — you earn from the MEV that would otherwise go to searchers.