What is MEV, and How Can It Benefit AVADO Users?
One increasingly popular way for users to maximize the amount of passive income that they can earn from staking Ethereum is through MEV extraction. AVADO is now making it possible for all its users to decide whether or not they want to make use of MEV when staking.
AVADO makes MEV accessible to everyone
AVADO offers plug-and-play devices that are designed to give everyone access to the exciting opportunities offered by the Web3 landscape. Whether you are a complete beginner or a crypto OG, an AVADO device will allow you to earn passive income by staking on different blockchains such as Ethereum in just a few easy steps.
As part of our core mission, we want to give users the freedom to choose how they take part in this landscape. As a result, we are giving device holders the ability to easily opt-in or out of using MEV when staking Ethereum.
While earning additional passive income through MEV extraction has typically been a luxury afforded only to people with significant experience in the blockchain world, it is now possible for anyone to benefit by simply opting in on their AVADO device.
But what is MEV, and how can it benefit everyday users?
What does the term “maximal extractable value” (MEV) mean?
As a concept, MEV has actually existed for quite a few years. Recently, however, it has enjoyed a significant uptick in popularity and user interest. It can be traced back to 2014, when a user on an online forum observed that there could be a way for miners to earn more money by exploiting the order in which transactions in a blockchain are processed.
When the term MEV was coined, it stood for “miner extractable value” — as it originally applied to Proof-of-Work (PoW) networks. Since networks like Ethereum are now transitioning to new consensus mechanisms such as Proof-of-Stake (PoS), it is generally agreed that MEV stands for “maximum extractable value”.
At its most basic level, MEV is just a way of validating pending transactions in an order that is most profitable for the miner or staker. True to its name, it is a way of “maximizing” the amount that can be earned from validating blocks.
While MEV extraction occurs in many blockchains today, the term is most often used in the Ethereum community. This is largely due to the fact that Ethereum is one of the world’s most popular cryptocurrencies and platforms.
What are the pros and cons of MEV?
MEV can be quite a contentious concept in the Web3 community. For critics of the concept, it can be seen as a reduction of a network’s decentralization. In addition, many of the methods used to employ this concept are critiqued as being exploitative practices and/or are seen as a selfish approach to being part of the landscape.
MEV extraction also typically requires significant technical proficiency on the user’s end in order to be effective while avoiding potential risks. While MEV becoming significantly more popular last year has improved its accessibility somewhat, the fact of the matter is that there have traditionally been many barriers for entry that prohibit ordinary users from taking part. This, in turn, could be seen as giving an unfair advantage to a small sector of users in a landscape that was designed to be an even playing field.
On the other end of the argument, however, many people point out that MEV is simply a way for participants in Web3 networks to earn more money for the vital role they play in keeping networks safe and decentralized. Effective MEV extraction means easily getting to earn more passive income, which ultimately means having even more of a reason to support projects by running a mining or staking device.
In addition, the term has gained far more legitimacy in recent years as projects have begun to widely acknowledge the potential applications of this concept. Currently, there are ongoing initiatives designed to ensure that MEV can coexist with the community-driven nature of decentralized networks.
AVADO lets you select the type of MEV you participate in
Using a parameter in the software, users can select the pool they want to participate in or even select multiple pools. There are pools that maximize for profit, pools that strive to be more ethical, and more pools will be added in the future, such as US law compliant pools. All these can be selected by the user. For more info look at the relay list on the flashbots site.
To find out more about AVADO or find the perfect device for your needs, check out our range of plug-and-play devices today.