MEV Supply Chain Matured

The MEV supply chain evolved from chaos into a structured market faster than expected. Searchers find opportunities, builders construct blocks, relays facilitate trust, proposers finalize. Each layer has specialized players now.

PBS really professionalized this space. Proposer-builder separation created clear roles and interfaces. Builders compete on block value. Proposers just pick the highest bid. Clean incentive alignment.

MEV-Share and order flow auctions add another dimension. Instead of extracting all value from users, some gets returned. Wallets auction their users' transactions to searchers. Users get kickbacks. It's almost civilized.

The sophistication of modern MEV strategies is wild. Cross-domain arbitrage across L1 and multiple L2s. Statistical arbitrage based on market predictions. Strategies that lose money individually but profit in aggregate.

The barriers to entry are concerning though. Running competitive MEV infrastructure requires serious capital and expertise now. The days of hobbyist searchers are over. Professionalization means centralization.

Still, this is better than the mempool jungle we had before. At least the extraction is efficient and some value flows back to users. Progress, even if imperfect.