What are frontrunners and MEV when it comes to crypto trading?

• 利用抢跑器和 MEV 是力求获取最大利润的加密货币交易方式。

• 抢跑器是能比人更快完成交易的自动化机器人。它们经常以更高的报价提前完成交易，这有助于发现潜在的交易机会

• MEV，即“矿工可提取价值”，是区块链网络中的矿商、验证器和排序器能够从中获利的经济活动。

Frontrunners in the world of cryptocurrency are automated bots designed to identify potential trading scenarios before anyone else can. They operate by scanning pending transactions and executing them faster than individuals.

This is made possible by the design of blockchain technology, where all submitted transactions are held in a waiting area known as the mempool until they are processed.

Frontrunners scan the mempool for suitable transactions to use for front-running, often outbidding others by offering higher transaction fees to ensure their transactions are processed first.

MEV, or Miner Extractable Value, is an economic phenomenon that can be exploited by miners, validators, and sequencers in the blockchain world. These entities can simply choose to include, leave out, or change the order of transactions inside the blocks they create. By doing so, they can end up with more value than they started with.

MEV strategies mean doing a series of actions on the blockchain to try to get the best results. As more people learn and understand MEV, the competition for potential opportunities intensifies, demanding even faster reactions.

There are several common MEV strategies used in crypto trading.

One of these is sandwiching, a form of market exploitation where traders anticipate price changes that will occur once a large order is confirmed. By buying just before the order confirmation and selling right after, they can benefit from the transaction.

Another strategy involves front-running bots that scan pending transactions and pay higher gas fees so that their transactions are processed first, allowing them to front-run a major trade that will affect market pricing.

While front-running is considered unethical and is illegal in traditional financial markets, its status in the crypto world is subject to interpretation and varies by jurisdiction.

This is largely due to the decentralized nature of cryptocurrencies and the lack of a central authority to enforce regulations.

However, it's worth noting that while it may not be explicitly illegal, front-running can negatively impact the fairness and integrity of the crypto market.

There are several strategies that can be used to avoid falling victim to front-runners and MEV. These include splitting transactions into multiple smaller ones, adjusting the slippage, and using periodic auction matching. It's also important to stay informed about the latest developments in the crypto world and to understand how these strategies work. By doing so, you can make more informed decisions and safeguard your assets.