Just-In-Time Liquidity: How MEV Can Enhance DeFi on Ethereum

Posted on by American Coins & Gold

Just-In-Time Liquidity: How MEV Can Enhance DeFi on Ethereum
What is MEV?Behind the scenes of most major blockchains, shadowy super-coders and the bots they build are using the transparency of blockchains and the transaction fee market to their advantage. By watching a database of all pending and unconfirmed transactions called the mempool, the bots are able to pay higher transaction fees to slip in their own transaction in an order that is profitable, often at the expense of decentralized finance (DeFi) users.This article originally appeared in Valid Points, CoinDesk’s weekly newsletter breaking down Ethereum 2.0 and its sweeping impact on crypto markets. Subscribe to Valid Points here.According to the…