3min chapter

Flirting with Models cover image

Doug Colkitt - High Frequency Trading, MEV Strategies, and CrocSwap (S6E3)

Flirting with Models

CHAPTER

Ethereum Blockchain Architecture Enables Mev Searching

Mines can inject any transaction they want into the block that they are compiling. Before mev was a really big deal, what miners would do is something pretty simple. They'd say, let me look at all the transactions out of the mem pool and who's paying the highest gas price? If it's tied, whose transaction did I see first? And miners weren't really aware of mev's. It was kind of just part of the standard Ethereum client software but there's no mev. This is a greedy algorithm and it pretty much works correctly and maximizes your profits as a miner.

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