MEV (Maximal Extractable Value, sometimes Maximum Extractable Value) refers to the profit that can be extracted by an entity that controls or influences the ordering of transactions within a blockchain block. In the context of Solana meme coin trading, MEV manifests primarily as sandwich attacks and front-running, where bots detect pending transactions and insert their own transactions before and/or after them to profit at the original trader's expense.
Sandwich attacks
The most common MEV strategy in DeFi is the sandwich attack. A MEV bot detects a pending buy transaction, submits a buy order immediately before it (driving the price up slightly), allows the victim's transaction to execute at the higher price, and then immediately sells into the victim's purchase pressure. The result: the victim buys at a higher price than expected, and the MEV bot extracts the difference.
MEV on Solana
Solana's architecture differs from Ethereum's mempool model, making traditional MEV harder but not impossible. Jito's bundle system creates a new MEV surface: searchers can submit bundles that execute atomically around target transactions. MEV-protecting services like Jito's private bundle submission allow traders to submit transactions that are harder to sandwich.
Protecting against MEV
Traders can reduce MEV exposure by using Jito tip-protected bundles, trading during low-congestion periods, keeping slippage tolerance low (forcing the transaction to fail if price has moved significantly), or using DEX aggregators that route through MEV-protected paths.