IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2310.07865.html
   My bibliography  Save this paper

The Specter (and Spectra) of Miner Extractable Value

Author

Listed:
  • Guillermo Angeris
  • Tarun Chitra
  • Theo Diamandis
  • Kshitij Kulkarni

Abstract

Miner extractable value (MEV) refers to any excess value that a transaction validator can realize by manipulating the ordering of transactions. In this work, we introduce a simple theoretical definition of the 'cost of MEV', prove some basic properties, and show that the definition is useful via a number of examples. In a variety of settings, this definition is related to the 'smoothness' of a function over the symmetric group. From this definition and some basic observations, we recover a number of results from the literature.

Suggested Citation

  • Guillermo Angeris & Tarun Chitra & Theo Diamandis & Kshitij Kulkarni, 2023. "The Specter (and Spectra) of Miner Extractable Value," Papers 2310.07865, arXiv.org, revised Oct 2023.
    • Handle: RePEc:arx:papers:2310.07865
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2310.07865
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Guillermo Angeris & Akshay Agrawal & Alex Evans & Tarun Chitra & Stephen Boyd, 2022. "Constant Function Market Makers: Multi-asset Trades via Convex Optimization," Springer Optimization and Its Applications, in: Duc A. Tran & My T. Thai & Bhaskar Krishnamachari (ed.), Handbook on Blockchain, pages 415-444, Springer.
    2. Max Resnick, 2023. "Contingent Fees in Order Flow Auctions," Papers 2304.04981, arXiv.org.
    3. repec:cup:cbooks:9781316779309 is not listed on IDEAS
    4. Roughgarden,Tim, 2016. "Twenty Lectures on Algorithmic Game Theory," Cambridge Books, Cambridge University Press, number 9781316624791, September.
    5. Roughgarden,Tim, 2016. "Twenty Lectures on Algorithmic Game Theory," Cambridge Books, Cambridge University Press, number 9781107172661, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Austin Adams & Benjamin Y Chan & Sarit Markovich & Xin Wan, 2023. "Don't Let MEV Slip: The Costs of Swapping on the Uniswap Protocol," Papers 2309.13648, arXiv.org, revised Apr 2024.
    2. Vincent Gramlich & Dennis Jelito & Johannes Sedlmeir, 2024. "Maximal extractable value: Current understanding, categorization, and open research questions," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-21, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tom Johnston & Michael Savery & Alex Scott & Bassel Tarbush, 2023. "Game Connectivity and Adaptive Dynamics," Papers 2309.10609, arXiv.org, revised Oct 2024.
    2. Konstantinos Georgalos & Indrajit Ray & Sonali SenGupta, 2020. "Nash versus coarse correlation," Experimental Economics, Springer;Economic Science Association, vol. 23(4), pages 1178-1204, December.
    3. Tommaso Denti & Doron Ravid, 2023. "Robust Predictions in Games with Rational Inattention," Papers 2306.09964, arXiv.org.
    4. Emerson Melo, 2021. "Learning in Random Utility Models Via Online Decision Problems," Papers 2112.10993, arXiv.org, revised Aug 2022.
    5. Ben Amiet & Andrea Collevecchio & Marco Scarsini & Ziwen Zhong, 2021. "Pure Nash Equilibria and Best-Response Dynamics in Random Games," Mathematics of Operations Research, INFORMS, vol. 46(4), pages 1552-1572, November.
    6. Tim Roughgarden, 2018. "Complexity Theory, Game Theory, and Economics: The Barbados Lectures," Papers 1801.00734, arXiv.org, revised Feb 2020.
    7. Berliant, Marcus, 2017. "Commuting and internet traffic congestion," MPRA Paper 77378, University Library of Munich, Germany.
    8. Austin Knies & Jorge Lorca & Emerson Melo, 2020. "A Recursive Logit Model with Choice Aversion and Its Application to Transportation Networks," Papers 2010.02398, arXiv.org, revised Oct 2021.
    9. Shunta Akiyama & Mitsuaki Obara & Yasushi Kawase, 2022. "Optimal design of lottery with cumulative prospect theory," Papers 2209.00822, arXiv.org.
    10. Peyman Khezr & Vijay Mohan & Lionel Page, 2024. "Strategic Bidding in Knapsack Auctions," Papers 2403.07928, arXiv.org, revised Apr 2024.
    11. Campbell, Michael, 2020. "Speculative and hedging interaction model in oil and U.S. dollar markets—Long-term investor dynamics and phases," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 540(C).
    12. Maryam Bahrani & Pranav Garimidi & Tim Roughgarden, 2023. "Transaction Fee Mechanism Design with Active Block Producers," Papers 2307.01686, arXiv.org, revised Oct 2023.
    13. Carlos Carrion & Zenan Wang & Harikesh Nair & Xianghong Luo & Yulin Lei & Xiliang Lin & Wenlong Chen & Qiyu Hu & Changping Peng & Yongjun Bao & Weipeng Yan, 2021. "Blending Advertising with Organic Content in E-Commerce: A Virtual Bids Optimization Approach," Papers 2105.13556, arXiv.org.
    14. Chaturvedi, Rakesh, 2020. "Fairness and partial coercion in land assembly," Games and Economic Behavior, Elsevier, vol. 120(C), pages 325-335.
    15. Nakayama, Kazuaki & Nakamura, Ryuzo & Hisakado, Masato & Mori, Shintaro, 2020. "Optimal learning dynamics of multiagent system in restless multiarmed bandit game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 549(C).
    16. Fuga Kiyosue & Kenjiro Takazawa, 2024. "A common generalization of budget games and congestion games," Journal of Combinatorial Optimization, Springer, vol. 48(3), pages 1-18, October.
    17. Ueda, Masahiko, 2023. "Memory-two strategies forming symmetric mutual reinforcement learning equilibrium in repeated prisoners’ dilemma game," Applied Mathematics and Computation, Elsevier, vol. 444(C).
    18. Awaya, Yu & Krishna, Vijay, 2019. "Communication and cooperation in repeated games," Theoretical Economics, Econometric Society, vol. 14(2), May.
    19. Etessami, Kousha, 2021. "The complexity of computing a (quasi-)perfect equilibrium for an n-player extensive form game," Games and Economic Behavior, Elsevier, vol. 125(C), pages 107-140.
    20. Tim Roughgarden & Inbal Talgam-Cohen, 2018. "Approximately Optimal Mechanism Design," Papers 1812.11896, arXiv.org, revised Aug 2020.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2310.07865. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.