The Largest MEV Reward on Ethereum: Lido Earns 689 ETH Worth $1.28 Million
A single Miner Extractable Value (MEV)-boost relay block on the Ethereum Beacon Chain recently rewarded Ethereum liquid staking solution Lido with a staggering 689 ETH, equivalent to $1.28 million. This is the largest MEV reward received since Lido’s previous high of 691 ETH on March 20.
The reward was paid from block number 17007842 on the Beacon Chain, which was finalized on April 9 and contained 47 transactions. The block was built by beaverbuild.org, as per transaction data.
The substantial reward caught the attention of Martin Köppelmann, the CEO of Gnosis, an Ethereum-based infrastructure platform. Köppelmann suggested that Ethereum users should consider using services like MEVBlocker to prevent their transactions from being exploited.
What is MEV and MEV-Boost Relay?
Miner Extractable Value (MEV) refers to the profits that miners or validators can extract from the order of transactions in a block. MEV-boost relay blocks are built by aggregating blocks from multiple builders, selecting the one with the highest fees. This allows miners or validators to exploit price manipulation and profit from the price changes in transactions.
One common type of MEV exploit is the “sandwich” attack, where an attacker places a large trade on either side of a target’s transaction, manipulating the price and profiting from the price change.
MEV-boost relays are a result of the concept of Proposer-Builder Separation (PBS) introduced by Flashbots, an Ethereum research organization, in 2021 ahead of Ethereum’s transition to proof-of-stake. PBS aims to promote competition, decentralize the Ethereum network, and strengthen censorship resistance at the consensus level.
MEV Exploits and Impact on Ethereum Users
MEVBlocker, a service that helps prevent MEV exploits, has reported that MEV bots have extracted over $1.38 billion from Ethereum users attempting to trade, provide liquidity, and mint non-fungible tokens (NFTs). Currently, there are 10 active relays, with Flashbots responsible for relaying more than 50% of the MEV-boost blocks since MEV was introduced in 2021, according to MEVBoost.org.
Addressing Censorship and Compliance Challenges
Ethereum has faced challenges with censorship and compliance since The Merge, particularly in complying with standards laid down by the Office of Foreign Assets Control (OFAC). Although the number of compliant blocks has decreased, the Ethereum community continues to work towards strengthening censorship resistance and ensuring compliance with regulatory requirements.
In conclusion, the recent MEV reward of 689 ETH earned by Lido from a MEV-boost relay block highlights the profitability and risks associated with MEV exploits on the Ethereum network. Implementing solutions like MEVBlocker and addressing censorship and compliance challenges are crucial steps towards safeguarding the interests of Ethereum users and ensuring a secure and decentralized blockchain ecosystem.
Ecosystem
Research
News Network
About