Your First 90 DaysAcademy
Act III · The Judgment · Week 11 · Checkpoint 22

MEV, the Games Invisible

By the end of this you will know what happens to your trade in the moment it sits in public, who the invisible players reading it are, and how to stop being the easy prey at the table.

11 steps~22 min3 nodes for your map
01 · The trade that worked, and cost you

You go to swap one token for another. The interface quotes you a price. You confirm. It goes through, marked success. But when you check what you actually received, it is less than the quote promised. Nothing errored. Nothing reverted. The trade simply landed worse than you were shown.

This is not a bug, and it is not a scam in the sense of the last few checkpoints. It is a game being played on top of your transaction, by players you never saw. Someone earned money from the exact trade you just made. To understand how, we go back to a room you already walked through.

02 · The face-up card

When you followed a transaction through the post office, it sat in a public waiting room before it was sealed into a batch. That room has a name you learned then: the mempool. And we told you to remember one thing about it, because a later checkpoint would need it. This is that checkpoint.

The mempool is public. While your swap waits to be sealed, anyone watching can read it: what you are trading, how much, and the price you will accept. Picture a poker table where your cards are turned face up. You can still play. But the professionals across the table can see your whole hand before they act.

03 · Going ahead of you

Here is the simplest version of the game. A watcher sees your pending trade in the public room. They know your trade, once sealed, will move the price a little. So they copy the idea and rush their own version in just before yours.

How do they jump the line? With postage. Remember that a seat in the next batch goes to whoever pays the most gas. The watcher attaches a higher fee, so their trade gets picked up first, ahead of yours, even though yours was sitting there already. Acting on the knowledge of a pending trade by paying to get in front of it is called front-running. The name is literal: they run in front.

04 · Wrapped on both sides

Front-running has a sharper, two-sided cousin, and it is the thing that quietly cost you in the opening scene. The watcher does not just go ahead of you once. They wrap your trade on both sides. First they buy right before you, nudging the price against you. Your trade then executes at that nudged, worse price. Then they sell right after you, pocketing the gap they created.

Your trade is the filling between two of theirs. The slippage you accepted, the small price movement you were willing to tolerate, was not waste, it was their profit, harvested from your transaction. This buy-before, sell-after move has a name that describes the shape exactly: a sandwich.

05 · Place your bet

It is natural to imagine a hunched figure watching your specific wallet, waiting to pounce. That picture is comforting because it makes the threat small and personal. It is also wrong.

Before we reveal who is really across the table, commit to a guess. Who, or what, is reading the public waiting room and placing these trades?

Pick one before we walk through it.
06 · Meet the players

So put real faces, or rather real machines, on the other side of the table. This is not a back-alley operation. It is an industrial ecosystem with specialists, running around the clock.

Tap each station to see what that player actually does.

0 of 3 players revealed
07 · The name over the door

Step back and notice what every one of these games shares. None of them create anything. They all profit from one single power: the ability to influence the order in which trades are placed inside a batch. Decide what goes first, and you can buy before, sell after, or simply jump the line.

The value squeezed out by controlling that order has a name, and it is the umbrella over everything in this checkpoint: maximal extractable value, almost always shortened to MEV. Front-running is MEV. Sandwiching is MEV. When you hear the term from now on, hear it as the whole family of ordering games played on top of public trades.

08 · How not to be easy prey

You cannot remove the searchers and bots, they are part of how a public chain works. But you can stop handing them a free meal. The defenses are about giving the table less to read and less room to wrap you.

A slippage limit is the strongest everyday one: it is the maximum worse-than-quoted price you will accept. Set it tight and a heavy sandwich pushes past your limit, so your trade fails harmlessly instead of executing at the robbed price. Private transaction routes exist too, paths that keep your trade out of the public room until it is sealed, so there is nothing to read in advance. And some networks, including certain layer twos, order trades differently than the ground floor, which changes how much these games can be played at all. The point is awareness of these levers, not any particular product.

09 · Diagnose the worse fill

Bring it back to where we started. You swap, it lands as success, but the amount you got is clearly below the quote. A panicked beginner concludes the interface lied, or their wallet is compromised, and goes looking for a thief in their accounts.

You can reason better than that now. Read the worse-than-quoted swap through the poker table, and say what most likely happened and what you would change.

Scenario
Your swap succeeded but filled well below the quote, with no error. What most likely happened, and what do you change next time?
10 · Is it theft to ban?

Having felt the sandwich from the victim's seat, the natural verdict is simple: this is theft, outlaw it. It is a fair instinct, and like most blanket verdicts it is too clean for the real thing. Pressure-test it before you carry it out the door.

Limit test
A friend says: "MEV is theft, plain and simple. The whole thing should be banned." Where is this too clean?
11 · Act 3 closes

So that is the invisible game. Your trade sits face up in the public waiting room, the mempool. Searchers and bots read it and play the order around it: front-running runs in front of you, a sandwich wraps you on both sides, and the slippage you allowed becomes their profit. The whole family has one umbrella name, maximal extractable value, MEV, and your defenses are real: tight slippage limits, private routes, and knowing some networks order trades differently. And the verdict is calibrated, not absolute, because some of this is the arbitrage that keeps prices honest and some of it simply preys on you.

Look back at the whole act. You can spot the five predators on sight, you run the four questions before signing, you understand how even audited protocols lose money, you can evaluate a project in ten minutes, you read markets without being the casino's business model, and now you see the games played on top of your own transactions. That is not beginner knowledge. That is the instinct of someone who has lived here for years, built deliberately, one judgment at a time.

Which raises the only question left. You understand where you are. So where is all of this going, and what is your place in it? Next: where it is all going.

your balance2,400
BANK_DBowner: the bank
you2,400
what the app is actually showing you
BANK_DBowner: the bank
you2,400their pen
you hold a claim. they hold the pen.
your digital life
BANK · you2,400the bank ✍
INSTAGRAM · you2.1M followersMeta ✍
STEAM · you134 gamesValve ✍
AIRLINE · you58,200 milesthe airline ✍
four tables. zero pens that are yours.
BANK_DBowner: the bank
you2,400
DENIED
try both pens
PLATFORM_DBowner: the platform
her · 8 years2,000,000 followers
one automated decision away
BANK_DB · you · 2,400intentcompetencecontinuity
your row stands on all three
FTX_DBowner: FTX
you5 BTC
the backing vault●●●●●
the row stayed. the backing did not.
CARD_DBowner: your bank ✍
TV you never bought−1,100
fraud reversal+1,100
someone holds the pen, so someone can fix it
?_DBowner: nobody
youstill yours?
?
can a table exist that nobody owns?
?
?_DBowner: ̶n̶o̶b̶o̶d̶y̶
you100
no owner, no pen, no trust?
keeper 1
you100
keeper 2
you100
keeper 3
you100
keeper 4
you100
keeper 5
you100
no THE copy, only copies.
keeper 2
you100
keeper 3
you100
keeper 4
you100
keeper 5
you100
your copy
you100
five copies. one of them is yours.
one attacker
one attacker, ten thousand faces.
real machinesburned wattsnext page, sealed
writing costs watts. faking voters buys nothing.
cost paid OUTSIDE: hardware and power
proof of work, burn energy to vote.
page 1you · 100page 2you · 100page 3you · 100page 4you · 100
rewrite one line, break every lock after it.
office lunchtrusted keeperconsensusfive keepers, real cost
the price buys trustlessness. the office already has trust.
?
ownerless ledger
you?
a key, not a login?
nobody owns the table. so who owns your row?
mevfront-runningslippage

Three new nodes on your map

mev · front-running · slippage · +10 Lynx