Jinse Finance reports that maximal extractable value (MEV) refers to the process by which miners or validators rearrange transactions within a block to extract profits, which hinders financial institutions from adopting Decentralized Finance (DeFi), thus harming the interests of retail investors. Aditya Palepu, 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 transaction data ordering. Due to the lack of transaction privacy, financial institutions cannot adopt DeFi, as this exposes them to risks of market manipulation and front running, since transactions are made public before execution.

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