- Ethereum-based projects CoW Swap, BeaverBuild, and Agnostic Relayer have launched MEVBlocker.io, a tool to protect against the maximal extractable value (MEV) exploits.
- MEVBlocker.io routes transactions through a searcher network to block attacks and pays users 90% of the profits from searchers’ bids, with 10% going to validators.
- Barely a few days ago, hackers used MEV bots to steal more than $25 million.
A group of Ethereum apps has collaborated to create an MEV Blocker, a utility that is said to help users transact on Ethereum without falling victim to MEV bots. For each transaction, decentralized finance (DeFi) users pay a tax known as Maximal Extractable Value (MEV). MEV bots can hijack transactions, such as cryptocurrency trades or NFT collection purchases, and cause price inflation for users.
What Exactly Is an MEV?
“Maximum extractable value” is a technique used by “searchers” to exploit other transactions. They accomplish this by submitting the same transaction as you but at a faster rate. This so-called “frontrunning” gets you a bad deal.
Backrunning is another technique in which the searcher cleans up any residual effects of the trade. The attacker then keeps the profits. When these two methods are combined, it is known as a “sandwich attack,” and it is considered the most severe form of MEV. MEV victims could lose hundreds or even thousands of dollars.
Only a few days ago, hackers used MEV bots to steal more than $25 million. The hacker then kept the stolen funds in three different locations.
MEV Blocker Brings DApps Together
CoW Swap, Beaver Build, Agnostic Relayer, EigenPhi, Builder0x69, ZeroMEV, Balancer, Gelato, Gnosis DAO, bloXroute, 1inch, Safe, and Paraswap are among the companies taking part in the campaign.
RPC services, which stand for remote procedure calls, typically connect users to the blockchain nodes. However, this MEV Blocker also provides users with the added benefit of MEV protection.
Martin Köppelmann, CEO of Gnosis, was quoted as saying about the development: “With the launch of MEV Blocker, users can profit from the back-running opportunities they create. Today all that money is taken by the searcher, but why shouldn’t it be split with the people who create the value?”
The Advantages of MEV Blocker RPC
The MEV Blocker RPC returns at least 90% of the proceeds from successful bids to the users, with the remaining 10% going to validators as a reward. As a result, users are protected from malicious MEV attacks and have the opportunity to profit from the arbitrage opportunities created by their transactions. This was previously only available to more experienced Ethereum users.
MEV Blocker RPC will compete with existing RPC solutions on the crypto market, such as Infura, Ankr, and Alchemy.
It will also compete with Flashbots’ MEV share, which is still in the development stage and similarly intends to shield customers from attacks while splitting revenue with them.
