MEV | Blink
Bad MEV is when an actor is able to get their transaction included in a block ahead of a user's transaction. This allows them to manipulate the state of the blockchain (e.g. liquidity pools) to give the user worse execution. Sandwich attacks are a classic example of this. Below is a screenshot of the notorious jaredfromsubway "sandwiching" a transaction on Ethereum: In the above transactions, jaredfromsubway made the owner of the transaction pay a 9% higher price and made (stole) a whopping $31,633.58. Spoiler alert: if the user had been using Blink, this wouldn't have happened! For good reasons, MEV gets a bad name. However, it's not all bad. In fact, in the right circumstances it can provide several benefits: Price Improvement Arbitrage helps align prices across different trading venues Reduces price discrepancies between DEXs Creates more efficient markets Token Holder Benefits Generates protocol fees from increased trading volume Can provide additional yield for liquidity providers