Multicoin Capital, a crypto-focused investment firm, has led a $2.3 million seed funding round for FastLane Labs, a maximal extractable value (MEV) protocol for Polygon. This marks the third time Multicoin has backed infrastructure for MEV, a controversial way for validators to earn more money while ordering transactions on a blockchain.

MEV, Incentive Re-Engineering, and the Perennial Perils of Decentralized Systems

Over 27 prominent Ethereum projects joined hands to launch MEV Blocker, a solution that aims to tackle and minimize the amount of value extracted from their users, a.k.a maximally extractable value (MEV) — Ethereum’s invisible tax. 

Bitcoin.com recently reported on the exploitation of MEV (Maximal Extractable Value) bots on the Ethereum network, resulting in $25.3 million in cryptocurrency losses. The incident was reportedly caused by a rogue validator on the Ethereum network who used a MEV bot to manipulate transactions and steal funds.

A major Ethereum MEV (maximal extractable value) bot has been targeted in an attack, resulting in the loss of almost $20 million.

A major Ethereum MEV (maximal extractable value) bot has been targeted in an attack, resulting in the loss of almost $20 million. The attack took place within one Ethereum block, with a validator forcing a series of transactions to steal funds the bot had planned to gain by front-running. MEV flashbots use "sandwich attacks" to steal value from users by manipulating the underlying price of the asset. The validator responsible for the attack had funded their wallet from privacy layer Aztec Network more than two weeks ago, suggesting it was a planned attack. The stolen funds are currently held in three wallets, with eight linked addresses originally funded from Kucoin. The attack has the potential to transform the MEV ecosystem, according to former Ethereum Foundation member Hudson Jameson.

Maximal Extractable Value (MEV) bots attempting to perform sandwich trades were outsmarted by a rogue validator, resulting in a loss of $25m worth of digital assets, according to blockchain security firm CertiK. The bots lost $1.8m in Wrapped Bitcoin (WBTC), $5.2m in USD Coin (USDC), $3m in Tether (USDT), $1.7m in DAI (DAI), and $13.5m in Wrapped Ether (WETH) to the validator, with the majority of funds transferred to three different wallets. The CertiK team said this was one of the largest exploits on MEV bots they had recorded since September 2022, adding that it could potentially affect other MEV searchers conducting strategies like sandwich trading.

MEV can be an effective mechanism for making profits in DeFi, but often, profits come at the expense of other users.

Cypher Capital, a Dubai-based multi strategy venture capital firm announced the completion of a six-figure investment into Wallchain, a solution for businesses in the short term and individuals in the longer term that provides protection against unfair practices used by miners to extract value and capture arbitrage profits generated from DeFi transactions.

Maximal Extractable Value (MEV) is a method for miners or validators to increase their profits by changing the order of transactions before approving a new block on the network.