Osprey Research: Don’t Sleep on MEV

If you own ETH, you need to think about Maximal Extractable Value (MEV). While validator yield is important, it’s MEV that quietly drives the world of ETH. 

To explain: Ethereum searchers, miners, and soon-to-be validators compete on millisecond timeframes, similar to high-frequency trading firms, utilizing arbitrage, frontrunning, and other methods to access latent on-chain alpha that comes from having a seat in front of Ethereum transaction flow.

MEV measures the total amount of ETH obtained by optimally reordering, including, or excluding transactions to maximize profit. Right now, searchers and miners run the MEV game. After Ethereum transitions to Proof of Stake, the game changes. 

Read our latest research report to understand the implications if you are invested in ETH.