According to Sec Finance, maximal extractable value (MEV) refers to the process by which miners or validators rearrange transactions within blocks to extract profit, which hinders Financial Institutions from adopting Decentralized Finance (DeFi), thereby harming the interests of retail investors. Aditya Palepu, the CEO of DEX Labs, stated that DEX Labs is a major contributor to the decentralized encryption derivatives trading platform DerivaDEX. All electronic trading markets face maximal extractable value or similar issues, which stem from information asymmetry in the ordering of transaction data. Due to the lack of transaction privacy, Financial Institutions are unable to adopt DeFi, as this exposes them to the risks of market manipulation and front running, since transactions are disclosed before execution.
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According to Sec Finance, maximal extractable value (MEV) refers to the process by which miners or validators rearrange transactions within blocks to extract profit, which hinders Financial Institutions from adopting Decentralized Finance (DeFi), thereby harming the interests of retail investors. Aditya Palepu, the CEO of DEX Labs, stated that DEX Labs is a major contributor to the decentralized encryption derivatives trading platform DerivaDEX. All electronic trading markets face maximal extractable value or similar issues, which stem from information asymmetry in the ordering of transaction data. Due to the lack of transaction privacy, Financial Institutions are unable to adopt DeFi, as this exposes them to the risks of market manipulation and front running, since transactions are disclosed before execution.