The Maximal Extractable Value (MEV) is one of the simple-looking concepts in Web 3.0 but has many implicit complex layers inside it. MEV is a concept of arbitrage, so this isn’t a new subject. It has high visibility, and the possibility for MEV is growing and becoming more significant.

Many Web3 users may be unaware that they are secretive contributors to MEV. We hope this will prick a curiosity to dig deep into this concept. So, let us get going!

The Different Types Of MEV You Should Know
You can employ MEV with crypto arbitrage trading bot development services.

While a decisive list of MEV extraction techniques would be inquiring to collecting due to the persistent nature of the phenomenon and the financial incentive for searchers to hold on to their strategies hazed, there are a few examples of MEV.
Sandwich Attack
You may be clueless that if you ever interact with a DeFi protocol on a blockchain, you may become prey to a “sandwich attack.” This is one type of web3 market manipulation in the DeFi ecosystem.

A sandwich attack occurs when an attacker tries to gain profits by taking advantage of an asset’s price volatility. This attack reduces the returns while swapping due to the high slippage.
Front-Running
It is inserting transactions before the following one to generate profit.

Front-running is a widespread technique as it yields more lucrative arbitrage options than any other method. On the Ethereum blockchain, searches will use bots to identify large orders on DEX. Then, they submit vying transactions with a high gas fee. At last, the searcher will mine the order before the victim does.
Back-Running
It is the procedure of getting a transaction requested immediately or subsequently after a known target transaction. Similar to front-running, searchers will use bots here to scan the Mempool for liquidity pools or new token pair listings on a DEX platform.

After witnessing a new token pair listing, the bot will immediately place orders after the initial liquidity and purchase tokens to an extreme it can buy. Therefore, the remaining traders will have only a few tokens left. After some time, the bot will sell the purchased tokens for profit when the price increases.
Liquidations
Searchers who specialize in dragging MEV via liquidations of over-collateralized loans on decentralized on-chain are known as liquidators. They run technical bots to scan the network for transactions offering liquidation.

Liquidators extract MEV from susceptible borrowers by liquidating their debts before they return them. Then, the profits will be obtained from selling the collateral presented by the borrower.
NFT Sniping
It occurs when searchers use front-running or censoring to scan and outbid transactions for particular sales of NFTs.

MEV-Boost
Researchers believe that MEV-Boost will reduce the threats to a permissionless and decentralized Ethereum blockchain and help reduce gas fees and network overcrowding for users.

Ultimately, MEV is essential to ensure the proper functioning of the decentralized exchange. As MEV is one of the parts of arbitration, you can get it by obtaining a crypto arbitrage trading bot development service.


https://www.blockchainfirm.io/cryptocurrency-trading-bots