Miner-extracted Value (MEV) has been a hot topic more and more lately, especially with the future adoption of EIP-1559 which would make the miners’ profits lower (as there will be no high-priced transactions in the blocks). Therefore, each and every mining pool is seeking opportunities to make up for the decreased revenue — and we are no exception.
How does MEV work? In essence, it is an automated process when some additional income may be made by arbitraging certain transactions — mostly for the p2p exchange platforms when the funds swap is done without a centralized exchange. Specialized software can watch the incoming transactions in the blocks to seek opportunities to step in the middle of a chain of token exchanges and profit from the exchange rate difference. For this to work, the intercepting transaction has to be executed early in the block so it takes over the exchange process and gains an advantage.
As you may guess, this requires two sides of the story — first, a miner (or a mining pool) with a high enough hash rate that could execute the insertion of the transaction, and second, a sophisticated algorithm that seeks for such exchange opportunities and prepares such transactions for the mining pool.
Of course, 2Miners has been closely following the topic for quite some time now, and now there are several different solutions available for the MEV integration for the miners — the most known, perhaps, is FlashBots. However, the most known does not necessarily mean the most profitable or smart. Therefore, we have been carefully surveying the scene to find the MEV partner for our pool to work with.
For several months already we have been closely working with Archer DAO, our chosen partner for the MEV extraction, and are deeply impressed by the algorithms they carry and the agility of the team behind it. As you’re reading this, we are already including some of the MEV transactions in our blocks, bringing the increased revenue for the miners. Of course, like any emerging technology, there are still questions to be solved to make MEV mining at 2Miners be up to par with everything else we make — transparent, useful, and totally open, but please be assured that by the time EIP-1559 lands, we will be making every effort in having our miners benefit from each and every MEV transaction executed through our pool — with no additional work required to be done by individual miners.
MEV rewards are already being distributed among our Ethereum miners. Ethereum Pool Blocks tab shows now MEV-rewards if they were included in the block. These extra rewards are distributed like the normal ETH rewards according to the PPLNS-scheme.
Please follow our blog in the coming months as we keep improving the reporting and unveil the way for our miners to see and track the additional MEV profit. With the help of Archer DAO we are also working on adding the new MEV-providers to our blocks right now.
If you have not yet tried our pools, today is a great opportunity to try and see why we are the platform of choice for thousands of loyal miners — from relatively big enterprise farms to hobbyists with just a couple of GPUs. They value us for great monitoring options, transparency, live support in Telegram, and more.
Learn how to make your mining more effective in our article “How To Overclock Nvidia and AMD Graphics Cards on Different Algorithms”.