Unpacking Maximum Extractable Value on Polygon: A Study on Atomic Arbitrage

Fuente: arXiv
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Autores principales: Vostrikov, Daniil, Madhwal, Yash, Seoev, Andrey, Smirnova, Anastasiia, Yanovich, Yury, Smirnov, Alexey, Gorgadze, Vladimir
Formato: Preprint
Publicado: 2025
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author Vostrikov, Daniil
Madhwal, Yash
Seoev, Andrey
Smirnova, Anastasiia
Yanovich, Yury
Smirnov, Alexey
Gorgadze, Vladimir
author_facet Vostrikov, Daniil
Madhwal, Yash
Seoev, Andrey
Smirnova, Anastasiia
Yanovich, Yury
Smirnov, Alexey
Gorgadze, Vladimir
contents The evolution of blockchain technology, from its origins as a decentralized ledger for cryptocurrencies to its broader applications in areas like decentralized finance (DeFi), has significantly transformed financial ecosystems while introducing new challenges such as Maximum Extractable Value (MEV). This paper explores MEV on the Polygon blockchain, with a particular focus on Atomic Arbitrage (AA) transactions. We establish criteria for identifying AA transactions and analyze key factors such as searcher behavior, bidding dynamics, and token usage. Utilizing a dataset spanning 22 months and covering 23 million blocks, we examine MEV dynamics with a focus on Spam-based and Auction-based backrunning strategies. Our findings reveal that while Spam-based transactions are more prevalent, Auction-based transactions demonstrate greater profitability. Through detailed examples and analysis, we investigate the interactions between network architecture, transaction sequencing, and MEV extraction, offering comprehensive insights into the evolution and challenges of MEV in decentralized ecosystems. These results emphasize the need for robust transaction ordering mechanisms and highlight the implications of emerging MEV strategies for blockchain networks.
format Preprint
id arxiv_https___arxiv_org_abs_2508_21473
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Unpacking Maximum Extractable Value on Polygon: A Study on Atomic Arbitrage
Vostrikov, Daniil
Madhwal, Yash
Seoev, Andrey
Smirnova, Anastasiia
Yanovich, Yury
Smirnov, Alexey
Gorgadze, Vladimir
Distributed, Parallel, and Cluster Computing
The evolution of blockchain technology, from its origins as a decentralized ledger for cryptocurrencies to its broader applications in areas like decentralized finance (DeFi), has significantly transformed financial ecosystems while introducing new challenges such as Maximum Extractable Value (MEV). This paper explores MEV on the Polygon blockchain, with a particular focus on Atomic Arbitrage (AA) transactions. We establish criteria for identifying AA transactions and analyze key factors such as searcher behavior, bidding dynamics, and token usage. Utilizing a dataset spanning 22 months and covering 23 million blocks, we examine MEV dynamics with a focus on Spam-based and Auction-based backrunning strategies. Our findings reveal that while Spam-based transactions are more prevalent, Auction-based transactions demonstrate greater profitability. Through detailed examples and analysis, we investigate the interactions between network architecture, transaction sequencing, and MEV extraction, offering comprehensive insights into the evolution and challenges of MEV in decentralized ecosystems. These results emphasize the need for robust transaction ordering mechanisms and highlight the implications of emerging MEV strategies for blockchain networks.
title Unpacking Maximum Extractable Value on Polygon: A Study on Atomic Arbitrage
topic Distributed, Parallel, and Cluster Computing
url https://arxiv.org/abs/2508.21473