[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Armand [@OnlyCryptoMaxi](/creator/twitter/OnlyCryptoMaxi) on x XXX followers Created: 2025-07-23 11:39:12 UTC MEV Explained: Why Your Crypto Trades Are Being Front-Run (And How Alephium Stops It) What is MEV? The "Invisible Tax" on Your Trades MEV stands for "Maximal Extractable Value" - basically, it's how bots and miners make money by manipulating the order of your transactions. Think of it like this: you're standing in line at a coffee shop, but someone bribes the cashier to let them cut in front of you, buy all the coffee, then sell it back to you at a higher price. That's essentially MEV. How MEV Screws You Over Let's say you want to buy $1000 worth of a token on Ethereum: X. You submit your trade - "Buy token X for $1000" X. MEV bot sees your transaction in the pending pool (called mempool) X. Bot front-runs you - pays higher gas fees to get processed first X. Bot buys the token first - driving up the price X. Your transaction executes - but now you get less tokens for your $1000 X. Bot immediately sells - pocketing the difference You just got "sandwiched" - and it happens millions of times daily across DeFi. The Numbers Are Staggering MEV extraction has cost users over $XXX billion since 2020. Popular DEXs like Uniswap see 90%+ of large trades getting MEV'd. It's like a hidden tax on every swap, making DeFi expensive and unfair for regular users. How Other Blockchains Handle MEV Ethereum: Completely vulnerable. The account model makes it easy for bots to see your pending transaction and front-run it atomically. Solana: Still suffers from MEV despite higher speeds. The fundamental architecture doesn't prevent it. Layer 2s (Arbitrum, Polygon): Inherit Ethereum's MEV problems and often make them worse with centralized sequencers. Most "solutions" are band-aids - like MEV auctions that just organize the extraction rather than preventing it. Alephium's Game-Changing Approach On Alephium, each transaction follows an Input/Output flow due to the UTXO model, making complex MEV attacks require multiple sequential transactions. This amplifies the risks for MEV searchers significantly. Here's why this matters: UTXO Magic: Instead of account balances that can be manipulated in one transaction, Alephium uses Bitcoin's UTXO model where each "coin" can only be spent once. MEV bots can't atomically front-run and back-run your trade - they'd need multiple separate transactions. Higher Risk, Lower Reward: The increased complexity and risk diminish the appeal of MEV attacks, resulting in their reduced occurrence on the Alephium blockchain. If a bot tries to sandwich you, they might succeed at the first transaction but fail at the second, losing money. No Flash Loans: The UTXO component of Alephium's stateful UTXO model prevents flash loans because an output cannot be utilized until its transaction is broadcast throughout the network. This kills one of the main tools MEV bots use for large-scale manipulation. The Bottom Line MEV is crypto's biggest hidden problem - a "tax" that makes your trades more expensive and DeFi less fair. While other chains treat it as inevitable, Alephium's architecture makes it structurally difficult and unprofitable. The result? Fairer prices, better execution, and more money staying in your pocket instead of feeding MEV bots. #Ethereum #ETH $ALPH @alephium #solanachain #SOL #Arbitrum #Polygon XXXXX engagements  **Related Topics** [the order](/topic/the-order) [money](/topic/money) [bots](/topic/bots) [tax bracket](/topic/tax-bracket) [mev](/topic/mev) [Post Link](https://x.com/OnlyCryptoMaxi/status/1947984842450145492)
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Armand @OnlyCryptoMaxi on x XXX followers
Created: 2025-07-23 11:39:12 UTC
MEV Explained: Why Your Crypto Trades Are Being Front-Run (And How Alephium Stops It)
What is MEV? The "Invisible Tax" on Your Trades MEV stands for "Maximal Extractable Value" - basically, it's how bots and miners make money by manipulating the order of your transactions. Think of it like this: you're standing in line at a coffee shop, but someone bribes the cashier to let them cut in front of you, buy all the coffee, then sell it back to you at a higher price. That's essentially MEV.
How MEV Screws You Over Let's say you want to buy $1000 worth of a token on Ethereum:
X. You submit your trade - "Buy token X for $1000" X. MEV bot sees your transaction in the pending pool (called mempool) X. Bot front-runs you - pays higher gas fees to get processed first X. Bot buys the token first - driving up the price X. Your transaction executes - but now you get less tokens for your $1000 X. Bot immediately sells - pocketing the difference
You just got "sandwiched" - and it happens millions of times daily across DeFi.
The Numbers Are Staggering MEV extraction has cost users over $XXX billion since 2020. Popular DEXs like Uniswap see 90%+ of large trades getting MEV'd. It's like a hidden tax on every swap, making DeFi expensive and unfair for regular users.
How Other Blockchains Handle MEV
Ethereum: Completely vulnerable. The account model makes it easy for bots to see your pending transaction and front-run it atomically.
Solana: Still suffers from MEV despite higher speeds. The fundamental architecture doesn't prevent it.
Layer 2s (Arbitrum, Polygon): Inherit Ethereum's MEV problems and often make them worse with centralized sequencers.
Most "solutions" are band-aids - like MEV auctions that just organize the extraction rather than preventing it.
Alephium's Game-Changing Approach On Alephium, each transaction follows an Input/Output flow due to the UTXO model, making complex MEV attacks require multiple sequential transactions. This amplifies the risks for MEV searchers significantly.
Here's why this matters:
UTXO Magic: Instead of account balances that can be manipulated in one transaction, Alephium uses Bitcoin's UTXO model where each "coin" can only be spent once. MEV bots can't atomically front-run and back-run your trade - they'd need multiple separate transactions.
Higher Risk, Lower Reward: The increased complexity and risk diminish the appeal of MEV attacks, resulting in their reduced occurrence on the Alephium blockchain. If a bot tries to sandwich you, they might succeed at the first transaction but fail at the second, losing money.
No Flash Loans: The UTXO component of Alephium's stateful UTXO model prevents flash loans because an output cannot be utilized until its transaction is broadcast throughout the network. This kills one of the main tools MEV bots use for large-scale manipulation.
The Bottom Line
MEV is crypto's biggest hidden problem - a "tax" that makes your trades more expensive and DeFi less fair. While other chains treat it as inevitable, Alephium's architecture makes it structurally difficult and unprofitable.
The result? Fairer prices, better execution, and more money staying in your pocket instead of feeding MEV bots.
#Ethereum #ETH $ALPH @alephium #solanachain #SOL #Arbitrum #Polygon
XXXXX engagements
Related Topics the order money bots tax bracket mev