MEV Explained: How Sandwich Attacks Steal From Traders

Maximal Extractable Value (MEV) costs DeFi traders hundreds of millions per year. This guide explains sandwich attacks, frontrunning, and how to protect your trades.

MEV (Maximal Extractable Value) is profit extracted by block producers (miners/validators) or bots by reordering, inserting, or censoring transactions. In 2025, over $2B in MEV was extracted from Ethereum users. Most retail traders are unaware they are losing to it on every swap.

What Is a Sandwich Attack?

When you submit a swap with >0.5% slippage tolerance, bots scan the mempool, spot your transaction, and insert: (1) a buy order before yours to push the price up, (2) your transaction at the worse price, (3) a sell order after yours to pocket the spread. You receive fewer tokens; the bot profits the difference.

Other Common MEV Strategies

How to Protect Yourself