Skip to main content
added 114 characters in body
Source Link
Yilmaz
  • 1.7k
  • 1
  • 11
  • 28

It is possible on bitcoin. MEV stands for "Maximal Extractable Value". How much maximum value can be extracted from manipulating the order of transactions in mempool.

  • When a validator sees a good profitable transaction in mempool, (MeV bots increase the gas price for the same transaction to get executed first but the validator does not have to. validator has full autonomy over the mempool), it places the same transaction and puts its transaction in front of the original transaction so its transaction gets executed first, and gains that profit. It mostly happens for arbitrage opportunities. if you check MEV Explorer, 99% of transactions are for arbitrage. Arbitrage happens with Defi and since bitcoin has no Defi yet, there is no opportunity with "MEV" in the bitcoin blockchain.

  • Another use case for MEV is if a validator sees a big buy order for "X" token, the validator places a buy order for the "X" token, and reorder the transactions in mempool so that its order gets confirmed before that big order, then if big buy order gets confirmed, price of "X" token will go up and the validator will make a quick profit. Since bitcoin volume is very high and volatile, no validator can make a move if they see a big buy order for bitcoin.

Both examples are front-running examples.

It is possible on bitcoin. MEV stands for "Maximal Extractable Value". How much maximum value can be extracted from manipulating the order of transactions in mempool.

  • When a validator sees a good profitable transaction in mempool, (MeV bots increase the gas price for the same transaction to get executed first but the validator does not have to. validator has full autonomy over the mempool), it places the same transaction and puts its transaction in front of the original transaction so its transaction gets executed first, and gains that profit. It mostly happens for arbitrage opportunities. Arbitrage happens with Defi and since bitcoin has no Defi yet, there is no opportunity with "MEV" in the bitcoin blockchain.

  • Another use case for MEV is if a validator sees a big buy order for "X" token, the validator places a buy order for the "X" token, and reorder the transactions in mempool so that its order gets confirmed before that big order, then if big buy order gets confirmed, price of "X" token will go up and the validator will make a quick profit. Since bitcoin volume is very high and volatile, no validator can make a move if they see a big buy order for bitcoin.

Both examples are front-running examples.

It is possible on bitcoin. MEV stands for "Maximal Extractable Value". How much maximum value can be extracted from manipulating the order of transactions in mempool.

  • When a validator sees a good profitable transaction in mempool, (MeV bots increase the gas price for the same transaction to get executed first but the validator does not have to. validator has full autonomy over the mempool), it places the same transaction and puts its transaction in front of the original transaction so its transaction gets executed first, and gains that profit. It mostly happens for arbitrage opportunities. if you check MEV Explorer, 99% of transactions are for arbitrage. Arbitrage happens with Defi and since bitcoin has no Defi yet, there is no opportunity with "MEV" in the bitcoin blockchain.

  • Another use case for MEV is if a validator sees a big buy order for "X" token, the validator places a buy order for the "X" token, and reorder the transactions in mempool so that its order gets confirmed before that big order, then if big buy order gets confirmed, price of "X" token will go up and the validator will make a quick profit. Since bitcoin volume is very high and volatile, no validator can make a move if they see a big buy order for bitcoin.

Both examples are front-running examples.

added 140 characters in body
Source Link
Yilmaz
  • 1.7k
  • 1
  • 11
  • 28

It is possible on bitcoin. MEV stands for "Maximal Extractable Value". How much maximum value can be extracted from manipulating the order of transactions in mempool.

  • When a validator sees a good profitable transaction in mempool, they(MeV bots increase the gas price for the same transaction, to get executed first but the validator does not have theirto. validator has full autonomy over the mempool), it places the same transaction and puts its transaction in front of the original transaction so its transaction gets executed first, and gaingains that profit. It mostly happens for arbitrage opportunities. Arbitrage happens with Defi and since bitcoin has no Defi yet, there is no opportunity with "MEV" in the bitcoin blockchain.

  • Another use case for MEV is if a validator sees a big buy order for "X" token, the validator places a buy order for the "X" token with a higher gas price, and reorder the transactions in mempool so that its order gets confirmed before that big order, then if big buy order gets confirmed, price of "X" token will go up and the validator will make a quick profit. Since bitcoin volume is very high and volatile, no validator can make a move if they see a big buy order for bitcoin.

Both examples are front-running examples.

It is possible on bitcoin. MEV stands for "Maximal Extractable Value". How much maximum value can be extracted from manipulating the order of transactions in mempool.

  • When a validator sees a good profitable transaction in mempool, they increase the gas price for the same transaction, have their transaction gets executed, and gain that profit. It mostly happens for arbitrage opportunities. Arbitrage happens with Defi and since bitcoin has no Defi yet, there is no opportunity with "MEV" in the bitcoin blockchain.

  • Another use case for MEV is if a validator sees a big buy order for "X" token, the validator places a buy order for the "X" token with a higher gas price, and its order gets confirmed before that big order, then if big buy order gets confirmed, price of "X" token will go up and the validator will make a quick profit. Since bitcoin volume is very high and volatile, no validator can make a move if they see a big buy order for bitcoin.

Both examples are front-running examples.

It is possible on bitcoin. MEV stands for "Maximal Extractable Value". How much maximum value can be extracted from manipulating the order of transactions in mempool.

  • When a validator sees a good profitable transaction in mempool, (MeV bots increase the gas price for the same transaction to get executed first but the validator does not have to. validator has full autonomy over the mempool), it places the same transaction and puts its transaction in front of the original transaction so its transaction gets executed first, and gains that profit. It mostly happens for arbitrage opportunities. Arbitrage happens with Defi and since bitcoin has no Defi yet, there is no opportunity with "MEV" in the bitcoin blockchain.

  • Another use case for MEV is if a validator sees a big buy order for "X" token, the validator places a buy order for the "X" token, and reorder the transactions in mempool so that its order gets confirmed before that big order, then if big buy order gets confirmed, price of "X" token will go up and the validator will make a quick profit. Since bitcoin volume is very high and volatile, no validator can make a move if they see a big buy order for bitcoin.

Both examples are front-running examples.

added 10 characters in body
Source Link
Yilmaz
  • 1.7k
  • 1
  • 11
  • 28

It is possible on bitcoin. MEV stands for "Maximal Extractable Value". How much maximum value can be extracted from manipulating the order of transactions in mempool.

  • When a validator sees a good profitable transaction in mempool, they increase the gas price for the same transaction, have their transaction gets executed, and gain that profit. It mostly happens for arbitrage opportunities. Arbitrage happens with Defi and since bitcoin has no Defi yet, there is no opportunity with "MEV" in the bitcoin blockchain.

  • Another use case for MEV is if a validator sees a big buy order for "X" token, the validator places a buy order for the "X" token with a higher gas price, and its order gets confirmed firstbefore that big order, then if another user's big buy order gets confirmed, price of "X" token will go up and the validator will make a quick profit. Since bitcoin volume is very high and volatile, no validator can make a move if they see a big buy order for bitcoin.

Both examples are front-running examples.

It is possible on bitcoin. MEV stands for "Maximal Extractable Value". How much maximum value can be extracted from manipulating the order of transactions in mempool.

  • When a validator sees a good profitable transaction in mempool, they increase the gas price for the same transaction, have their transaction gets executed, and gain that profit. It mostly happens for arbitrage opportunities. Arbitrage happens with Defi and since bitcoin has no Defi yet, there is no opportunity with "MEV" in the bitcoin blockchain.

  • Another use case for MEV is if a validator sees a big buy order for "X" token, the validator places a buy order for the "X" token with a higher gas price, its order gets confirmed first, then if another user's big buy order confirmed, price of "X" token will go up and the validator will make a quick profit. Since bitcoin volume is very high and volatile, no validator can make a move if they see a big buy order for bitcoin.

Both examples are front-running examples.

It is possible on bitcoin. MEV stands for "Maximal Extractable Value". How much maximum value can be extracted from manipulating the order of transactions in mempool.

  • When a validator sees a good profitable transaction in mempool, they increase the gas price for the same transaction, have their transaction gets executed, and gain that profit. It mostly happens for arbitrage opportunities. Arbitrage happens with Defi and since bitcoin has no Defi yet, there is no opportunity with "MEV" in the bitcoin blockchain.

  • Another use case for MEV is if a validator sees a big buy order for "X" token, the validator places a buy order for the "X" token with a higher gas price, and its order gets confirmed before that big order, then if big buy order gets confirmed, price of "X" token will go up and the validator will make a quick profit. Since bitcoin volume is very high and volatile, no validator can make a move if they see a big buy order for bitcoin.

Both examples are front-running examples.

Source Link
Yilmaz
  • 1.7k
  • 1
  • 11
  • 28
Loading