Maximal Extractable Value Mitigation Approaches in Ethereum and Layer-2 Chains: A Comprehensive Survey

TL;DR

This survey comprehensively reviews MEV mitigation techniques in Ethereum and Layer-2 chains, categorizing strategies, analyzing their effectiveness, and highlighting challenges to improve fairness and security in blockchain networks.

Contribution

It introduces a novel categorization of MEV mitigation strategies and provides an in-depth analysis of their challenges, effectiveness, and impact on network performance.

Findings

Various mitigation techniques vary in effectiveness and complexity

Cryptographic methods and transaction reordering are key strategies

Addressing MEV is crucial for blockchain fairness and security

Abstract

Maximal Extractable Value (MEV) represents a pivotal challenge within the Ethereum ecosystem; it impacts the fairness, security, and efficiency of both Layer 1 (L1) and Layer 2 (L2) networks. MEV arises when miners or validators manipulate transaction ordering to extract additional value, often at the expense of other network participants. This not only affects user experience by introducing unpredictability and potential financial losses but also threatens the underlying principles of decentralization and trust. Given the growing complexity of blockchain applications, particularly with the increase of Decentralized Finance (DeFi) protocols, addressing MEV is crucial. This paper presents a comprehensive survey of MEV mitigation techniques as applied to both Ethereums L1 and various L2 solutions. We provide a novel categorization of mitigation strategies; we also describe the challenges, ranging from transaction sequencing and cryptographic methods to reconfiguring decentralized applications (DApps) to reduce front-running opportunities. We investigate their effectiveness, implementation challenges, and impact on network performance. By synthesizing current research, real-world applications, and emerging trends, this paper aims to provide a detailed roadmap for researchers, developers, and policymakers to understand and combat MEV in an evolving blockchain landscape.