All the MEV Myth Busters You Can't Miss
Dissect the real transactions that shatter people's comforting stories about DeFi.
Behind every transaction is a battle-tested supply chain of searchers, builders, and validators—an ecosystem that rewards speed, creativity, and, sometimes, downright audacity. In this MEV Myth Busters series, we’ll dissect the real transactions that shatter people's comforting stories about DeFi.
One by one, we’ll place a popular belief under the microscope, replay the raw on-chain evidence, and show exactly how value was extracted.
MEV Myth Buster #1: Why Your Passive Limit Orders Are Actually Active Targets
In DeFi, even your passive intent can be exploited.
MEV Myth Buster #2: Adding Liquidity Is NOT Safe From Sandwich Bots
Most DeFi users think only active traders get sandwiched—swap too much slippage, and you pay the price. Don't think like that if you are a whale providing liquidity to DEXes.
MEV Myth Buster #3: Sandwich Attacks Still Loom Large Above Traders’ Heads
Private mempools, smart routing, MEV blockers—these protections make us feel like it’s a problem of the past.
Myth Buster #4: No Trade is Too Small To Be Exploited
Many of you must have heard of jaredfromsubway.eth, the most notorious Sandwich chef who has been the top 1 gas spender.
Most users assume that sandwich bots like Jared go after big trades—whale-size swaps with big slippage.
Myth Buster #5: You Need Better Tools to Comprehend MEV
Does Etherscan present the full account regarding transaction costs?
Gas used × gas price = fee paid. Easy.
However, Etherscan only provides basic data. You can’t understand MEV without figuring out the builder tips in some transactions.
Myth Buster #6: Impact of Exploits Ripples Across the Board via Composability
Many traders assume that when an exploit drains one pool, the damage—and any MEV—stops there.
They fail to understand that DeFi’s composability causes chain reactions in unexpected ways, like what we observed after the $1.5 billion ByBit hack.
Myth Buster #7: Mega Profits Can Be Built on Sequenced Multi-Pool Trades
People picture a record-setting MEV haul as a lucky snipe on one wildly mis-priced pool—hit it fast, scoop the spread, and you’re done.
But that story ignores how DeFi’s composability generates the biggest payouts. A liquidation distorts multiple derivative tokens at once, and the true windfall goes to the searcher who maps those distortions across pools, then chains them into a carefully ordered sequence.
Myth Buster #8: Bad Sandwich Can Be Combined with Token Scams
Some people think MEVs like frontrunning are more tech-prone risks, while scam tokens and rug-pulls belong to a whole different category: social engineering.
But what if the same actor controls both? This triple-evil sandwich would show you the damning ramifications, making it the thickest sandwich we have ever observed.
Myth Buster #9: Defaulted Debts Can’t Bankrupt a Lending Protocol — Flash Loans Can
Most users believe that lending protocol risk is primarily related to borrower behavior, including collateral ratios, liquidation thresholds, and missed repayments.
However, this case reveals a deeper truth: Flash loans render repayment irrelevant.
Myth Buster #10: The Best MEV Bot Is a Jack-of-All-Trades
Most users believe that lending protocol risk is primarily related to borrower behavior, including collateral ratios, liquidation thresholds, and missed repayments.
However, this case reveals a deeper truth: Flash loans render repayment irrelevant.
You can click this link or open https://bit.ly/hfdefi to download the free ebook Head First DeFi, Decoding the DNA of Crypto Transactions & Strategies. We are adding more intriguing cases in 2024. Let us know if you want to be part of it.
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