Flashbots and MEV are a huge problem for DEXs. Here's why you should care. | DeFi Markets

Flashbots & Miner-Extractable Value are problems faced by
decentralised exchanges (DEXs). In this episode, we explain what
flashbots and MEV are all about and what solutions there are. We
also explain in-depth the risks of ETH like front running, and
several design flaws in DEXs.


This recording was extracted from our free-to-join Discord lounge
sessions. We host lounge sessions on Sundays, where we dive deep
into such topics, and you get the chance to ask any questions
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Discord link: https://economicsdesign.com/discord


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Timestamps:


0:00 – Introduction to MEV & Flashbots


0:24 – Layer 1 infrastructure comparison: BTC vs ETH


1:36 – 51% Attack vs Front Running vs Forking


3:49 – Flashbots explained


7:06 – MEV (Miner Extractable Value)


8:12 – Other arbitrage opportunities


8:57 – Solutions to MEV


10:30 – 5 design flaws in DEXs


12:57 – Front Running & information Assymetry


14:55 – Impact of Economic Rent on DEXs


16:18 – Why Flashbots & MEV are a big problem


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