Watch / Cost of Feudalism: Towards a Theory of MEV

Cost of Feudalism: Towards a Theory of MEV

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Cost of Feudalism: Towards a Theory of MEV

Duration: 00:30:05

Speaker: Tarun Chitra, Guillermo Angeris

Type: Talk

Expertise: Advanced

Event: Devcon 6

Date: Oct 2022

Maximal Extractable Value (MEV) is excess value captured by miners/validator. This excess value often comes from reordering, censoring, or inserting new transactions that allow a miner to front-run users' transactions. Is MEV *always* bad? Can it sometimes lead to good equilibria for users? We modify tools from algorithmic game theory and probability to prove some surprising paradoxes — *some* MEV improves trading efficiency in networks of automated market makers.
About the speakers

GA

Guillermo Angeris

TC

Tarun Chitra

Floating through the Ether, reading math papers, writing DeFi research @GauntletNetwork, techno lover.

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