MEV

MEV

Definition

Maximal Extractable Value (MEV) refers to the profit that can be extracted by reordering, including, or censoring transactions within a block. In meme trading, MEV bots often frontrun or sandwich your trades to profit at your expense.

Examples

  • 1

    A sandwich attack: An MEV bot sees your buy order, places a buy order before yours (frontrun), then sells immediately after your trade executes (backrun), profiting from the price movement your trade created.

  • 2

    Frontrunning: An MEV bot detects your large buy order and buys the same token milliseconds before you, driving up the price you pay.

  • 3

    Backrunning: After you buy a token, an MEV bot immediately sells into your buy, causing you to lose value instantly.

Related Terms

Why This Matters

Understanding mev is crucial for safe and effective meme coin trading. Being aware of this can help you avoid losses and optimize your trades.

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