MEV isn’t just extracted value—it’s an unaccounted attack surface. For example:

1⃣ Exploit slippage tolerance in AMMs to drain LP value.

2⃣Bots manipulate oracle prices to trigger unnecessary liquidations.

3⃣Reorgs to reverse transactions (see Ethereum’s post-merge risks).

4⃣ MEV creates protocol-level arbitrage where attackers profit by destabilizing the system itself.

Mitigation Frameworks for Protocols

• Time-locked orders: Batch auctions (e.g., @CoWSwap) or delay tx visibility (e.g., encrypted mempools like SUAVE).

• Slippage recalibration: Dynamic fees based on MEV risk (e.g., UniswapX’s fill-or-kill orders).

• Oracle hardening: Use ZK proofs for price attestations (e.g., =nil; Foundation’s zkOracle).

• Simulate MEV pre-launch: Tools like @flashbots_x MEV-Explore to stress-test contracts.

• MEV redistribution: Redirect extracted value to LPs/users (e.g., Osmosis’s threshold encrypted mempool).

• Circuit breakers: Pause contracts if MEV spikes indicate an attack (e.g., Synthetix’s SIP-267).

• Insurance funds: Pre-funded pools to cover MEV-related losses (e.g., @dYdX's safety module).