Recently, I’ve been researching MEV bots and related topics, and I’ve realized that this subject is actually much more complex than I initially thought. Today, I want to talk with everyone about what MEV bots really are and the role they play in the DeFi world.

Let’s start with the basics. MEV stands for Miner Extractable Value, which simply means extracting value from transactions on the blockchain through specific operations. It’s not speculation, nor is it some Ponzi scheme; it’s more like high-frequency trading (HFT) in traditional finance, but in the crypto world.

Regarding the actual operation of MEV bots, the core method is called sandwich attacking. This type of attack is often criticized because it directly targets retail investors who don’t fully understand the underlying blockchain logic. For example, someone trying to front-run a new token purchase might set an absurd slippage of 99%, making themselves vulnerable to sandwich bots.

An interesting phenomenon is that the most successful MEV bot operators worldwide are said to have executed over 230k attacks, with more than 100k victims. That number is truly staggering.

But here’s something worth pondering: from an economic efficiency perspective, the operation of MEV bots actually helps the market price to balance and ensures that the market meets consumers’ willingness to pay. In other words, this mechanism itself isn’t necessarily entirely malicious. Just like high-frequency trading in the stock market, although controversial, it is widely recognized as a market phenomenon.

Can sandwich attacks be avoided? Honestly, the answer is no. As long as there are profits to be made, someone will run MEV bots. This is the nature of the market, not a problem unique to crypto.

However, some new ideas have recently emerged. For example, tools like FlashBots are essentially bots too, but their purpose is to hide transaction information from MEV bots. Now, it seems that MEV bots and FlashBots are engaged in some sort of “arms race.”

Overall, MEV bots are like a double-edged sword—good and bad. The key is how they are used. Understanding how they work can be very helpful for protecting yourself in DeFi.