In on-chain high-frequency trading, the broad concept of MEV is an unavoidable topic. MEV not only worsens the trading experience for users but also leads market makers (whether active or LP) to encounter more toxic flow. In a first-come, first-served scenario, once a normal trade is broadcasted to public nodes, scanning bots will identify trades with arbitrage or front-running opportunities and then insert their own trades. As a result, the execution price for users will naturally suffer, regardless of how short the gap is between inputting the trade and executing it; it cannot be faster than the speed of the scanning bots. This is an inherent flaw of the first-come, first-served fee market. Batch auctions, similar to Flashbots/Jito's bundles, gather trades privately in an off-chain location and then bid on this arbitrage opportunity for redistribution to traders, returning part of the searcher’s arbitrage profits to the traders. However, this has the downside of slowing down...
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