Glossary Term

MEV (Maximal Extractable Value)

MEV, or Maximal Extractable Value, is the additional profit that blockchain validators or searchers can earn by reordering, including, or excluding transactions in a block. On Solana, MEV remains lucrative but is less predictable due to the absence of a public mempool.

Beginner

DeFi

Crypto Terminology

MEV (Maximal Extractable Value): what is it?

Maximal Extractable Value (MEV) is a concept that captures the maximum possible value one can extract from ordering, including, or excluding transactions within a blockchain block, beyond just block rewards or standard transaction fees. The actors who extract MEV—validators, searchers, bots—leverage knowledge of pending or arriving transactions to sequence them in ways that can lead to profit.

MEV isn’t always the same on each chain. Because of differences in transaction submission, propagation, and block production, opportunities vary. Practices such as arbitrage, back-running, front-running (or sandwich attacks) are typical examples of where MEV arises. Some MEV is constructive (arbitrage can help equalize prices across exchanges), while other MEV is viewed as harmful (when users incur worse prices or pay higher fees because of transaction reordering).

Context on Solana

Solana has several architectural features that affect how MEV plays out:

No global public mempool: Unlike Ethereum, Solana does not maintain a large, visible pool of pending transactions waiting for inclusion. Transactions are forwarded directly to upcoming block leaders via mechanisms such as Gulf Stream.
Validator clients and infrastructure: A major player is Jito (Jito-Solana client), which many validators use to capture MEV. They facilitate bundle auctions, where searchers submit transaction bundles (with tips) to validators for priority execution.
Temporary “pseudo-mempools” / private or out-of-protocol mempools: For example, Jito had a service (a pseudo-mempool) which allowed searchers a short window (~200 ms) to see transactions before block inclusion. Jito suspended this public mempool in March 2024 due to negative externalities (spam, harmful sandwiching etc.).
Transaction forwarding / priority and stake-weighted QoS: Solana prioritizes transaction traffic based on stake, quality of service, and validator client features. This can affect who gets their transactions processed first or with what priority.

Why It Matters

For beginners, MEV is important because it touches core aspects of fairness, cost, and transparency in crypto. It can increase cost of transactions (worse execution price, paying for priority), influence which validators gain more rewards, and affect user experience. In Solana’s ecosystem, understanding MEV helps in making sense of trade slippage, validator client differences, and why some infrastructure players (like Jito) have significant influence.

Key Takeaways

MEV = value from reordering, including, or excluding transactions in blocks beyond regular fees.
Solana’s lack of a public mempool and fast transaction propagation changes how MEV works vs chains like Ethereum.
Tools like Jito bundle auctions are central in current Solana MEV infrastructure.
Some forms of MEV can harm regular users (especially in low liquidity or high slippage scenarios).
Monitoring MEV and using transaction protection or choosing infrastructure wisely can help reduce negative impacts.

Examples

1
A searcher sees a large trade about to happen on a Solana DEX, and arranges a bundle that front-runs that trade to profit from the price move.
2
During a token launch with high slippage tolerance, bots may try sandwich attacks (placing one transaction right before and one right after a user’s trade) to extract value from the user’s worse execution.
3
Validators using Jito client receiving tips from bundles and prioritizing or accepting transactions that offer higher “priority fees” or user incentives, even absent a public mempool.

Common Use Cases

Searchers / bots: Identify MEV opportunities (arbitrage, sandwiching, back-running) and submit bundles or high-tip transactions to capture value.

Validators: By using clients like Jito or accepting bundle tips, validators can increase revenue beyond staking rewards.

Protocol design / defenses: Protocols can try to reduce harmful MEV via private ordering, transaction protection tools, or by introducing fairness or randomized ordering mechanisms.

Pro Tips

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Pay attention to which validators use MEV-aware clients (like Jito) since that influences how transaction bundles and tips are handled.

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If trading on Solana, be aware that high slippage and low liquidity make trades more vulnerable to sandwich attacks.

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Use tools or dashboards to monitor MEV activity (e.g. sandwich attack detectors, MEV dashboards) so you can see when MEV is likely impacting trades.

Frequently Asked Questions

What is MEV?

MEV (Maximal Extractable Value) is extra profit obtainable by reordering, including, or excluding transactions beyond usual fees. It happens when block builders or validators have control over transaction ordering.

Who are “searchers”?

Searchers are actors/bots that scan transaction flows to find profitable opportunities and submit bundles or tips to validators to capture MEV.

What role does Jito play?

Jito provides a validator client and bundle auction infrastructure, often used by validators to capture MEV more efficiently.

What is a sandwich attack?

A strategy where a searcher places a transaction right before and one right after a target user’s trade to exploit price movement, often leading to worse execution for the user.

When did Jito suspend its public mempool?

Jito suspended its public mempool service in March 2024 due to negative impacts like spam and predatory trading.

Is all MEV bad?

No. Some MEV (like arbitrage) improves price alignment between markets, but others (sandwich attacks, front-running) are harmful to regular users.

Does Solana have a public mempool?

No; Solana does not maintain a global public mempool. Transactions are forwarded to upcoming block leaders, not waiting in a visible queue.

How do validators benefit from MEV on Solana?

Through tips in bundles, priority fees, or by using MEV-aware clients that optimize transaction inclusion.

What risks does MEV pose for users?

Risks include worse execution prices, unexpectedly high gas / priority fees, or being subject to sandwich attacks. Also, system-wide effects like spam or degraded user experience.

Are there efforts to reduce harmful MEV?

Yes. Examples include suspending the public mempool, developing infrastructure for fair transaction ordering, private relays, or protective tools.