DeFiCoders Team

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Frontrunners and MEV Bots Explained: How it works

On most blockchains, miners (on Proof-of-Work chains) or nodes (on Proof-of-Stake chains) typically generate revenue from two main sources — block rewards and transaction fees. But with the recent advent of decentralized finance (DeFi), a new revenue stream has been unlocked — which comes from the way transactions are ordered within a newly mined/validated block. Given that miners/nodes have a great deal of control over transaction ordering, they also …

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