Regulation, mitigation, and ethics
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Aligning MEV extraction practices with antitrust principles can support open participation, prevent monopolistic control, and uphold decentralization ideals in blockchain ecosystems.
Relay services like Flashbots enable off-chain transaction bundling to reduce generalized front-running, but introduce new forms of centralization in transaction flow control.
Proposer-Builder Separation (PBS) is a mitigation framework that splits block construction from block proposing to reduce MEV concentration and promote more equitable transaction inclusion.
Relays and private order flow infrastructure can introduce vulnerabilities that malicious actors exploit for MEV extraction, bypassing intended protections.
The lack of regulation in blockchain ecosystems allows MEV practices like transaction reordering and front-running to thrive without traditional financial oversight or enforcement.
Certain MEV strategies, particularly sandwich attacks and oracle manipulations, could be classified as market manipulation under securities and commodities regulations.
User-level mitigation strategies such as trade batching, slippage limits, and transaction simulation protect individual traders against exploitative MEV practices.
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Referenced by
Maximal Extractable Value (MEV)
Crypto
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