MEV-Explore - On-chain Toolbox

MEV-Explore

name：MEV-Explore

ico：

Domain Name：explore.flashbots.net

time：2024-03-22

introduce：MEV (Miner Extractable Value) activity inquiry on Ethereum:Firstly, we need to understand that in Ethereum, once a transaction is initiated, it will be placed in the mempool waiting to be packaged by miners. Therefore, miners can see all transactions in the mempool, and their power is significant as they control the inclusion, exclusion, and ordering of transactions. Some individuals may profit by paying higher gas fees to bribe miners to adjust the transaction order in the mempool.One such MEV technique is known as a sandwich attack or front-running attack. This method involves monitoring large decentralized exchange (DEX) transactions on the blockchain. For example, suppose someone intends to purchase $1 million worth of a particular altcoin on Uniswap. This transaction will significantly raise the altcoins price. When this transaction enters the mempool, monitoring bots can detect it. The bots then bribe the miner packaging that block to insert a purchase order for the same altcoin ahead of the original buyer. Subsequently, they perform a sell order after the initial buyers purchase, sandwiching the large traders order in between, resembling the layers of a sandwich. In this way, the perpetrator of the sandwich attack profits from the price increase caused by the large trade, while the original buyer suffers a loss.