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 live. We invite noteworthy guest speakers too. Do join our Discord channel to engage with the community! :)


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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