How MEV Works in Blockchain Transactions

Transactions enter the mempool When a user places a trade on a decentralized exchange (DEX), it sits in the mempool, awaiting confirmation on-chain.

MEV bots scan for profitable opportunities Bots monitor the mempool for trades that will impact prices and execute strategies around them.

MEV transactions are executed Bots automatically place buy and sell orders before and after the detected trade, capturing price differences.

Profits are extracted The bot sells at an optimized price, locking in the extracted value before others can react.