In the world of trading, there’s a term that traders are increasingly paying attention to: Maximal Extractable Value (MEV).

But what is it, and why does it matter to you?

MEV refers to the extra profit that blockchain miners or validators can earn by strategically reordering, including, or excluding transactions from the blocks they validate. 

Essentially, it’s a way for validators to maximize their earnings by manipulating transaction order, often at the expense of regular traders.

What are MEV Bots?

MEV Bots are sneaky, high-speed programs designed to exploit Maximal Extractable Value (MEV) opportunities on blockchain networks like Solana or Ethereum.

These bots strategically manipulate the order and execution of transactions within a block to maximize their own profit. 

They often act faster than human traders, taking advantage of inefficiencies or vulnerabilities in decentralized finance (DeFi) ecosystems.

How Do MEV Bots Work?

MEV bots are like crafty opportunists, always on the lookout for ways to exploit blockchain transactions in real time. 

Here’s how they pull off their tricks:

Transaction Front-Running

Imagine you're about to buy a token, but just as your transaction is being processed, a bot swoops in and gets ahead of you:

• The bot spots a profitable transaction, like a large token purchase, and quickly submits its own with a higher gas fee to get priority.

  
  

• It buys the token first, causing the price to rise.

  
  

• Your transaction goes through, but now you’re paying a higher price—while the bot pockets the difference.

  
  

Back-Running

Once the bot sees a big transaction move the market:

• It waits until the price spikes, then immediately sells the token at the inflated price.

  
  

• This allows the bot to cash in on the market movement, leaving others with the leftovers.

  
  

Sandwich Attacks

This is where things get devious:

• The bot places a buy order just before your transaction and a sell order right after.

  
  

• This creates artificial slippage, forcing you to pay more for your trade while the bot profits from the price manipulation.

  
  

Liquidation Arbitrage

MEV bots also hunt for vulnerable positions on DeFi platforms:

• They track undercollateralized loans or liquidation opportunities.

  
  

• When a loan is about to be liquidated, the bot steps in, profiting from the process before anyone else can react.

  
  

Why Are MEV Bots a Problem?

Think of MEV bots as cunning predators in a blockchain jungle. They prioritize their profits at the expense of everyday traders, leading to a host of issues:

• Higher Costs: Bots manipulate token prices, making trades more expensive for everyone else.

  
  

• Unfair Playing Field: Honest users are left scrambling while bots dominate with speed and precision.

  
  

• Network Congestion: Bots flood the blockchain with priority transactions, driving up gas fees for everyone.

  
  

How To Beat MEV Bots

While MEV bots might seem unstoppable, there are ways to outsmart them:

• Use MEV Protection Tools: Platforms like Bonkbot offer MEV Protect, a feature designed to shield your trades from bot interference.

  
  

• Lower Your Slippage Settings: Adjusting your slippage tolerance makes it harder for bots to exploit your trades. By default, Bonkbot is set to 10% slippage and Turbo Mode because most users value speed. However, you can easily adjust these settings based on your preferences.

  
  

• Go Private: Some DeFi platforms support private transactions, bypassing the mempool entirely to keep bots out of your business.

  
  

BONKbot MEV Protect

To shield users from MEV bots, Bonkbot has introduced a feature called MEV PROTECT, which offers two different settings: Secure Mode and Turbo Mode. 

These options give users the flexibility to balance speed and protection based on their trading needs.

Turbo vs. Secure Mode: Which One Should You Choose?

Choosing between Turbo and Secure Mode depends largely on your trading strategy and risk tolerance. Here’s a breakdown:

1. Secure Mode: Maximum Protection

• Who it’s for: Traders using extremely high slippage (up to 50%).

  
  

• What it does: Offers the highest level of protection against MEV bots.

  
  

• Why use it: If you trade with high slippage, Secure Mode helps you avoid massive losses that can occur when MEV bots exploit your settings.

  
  

2. Turbo Mode: Speed Over Protection

• Who it’s for: Traders with low to medium slippage who prioritize speed.

  
  

• What it does: While still offering some MEV protection, Turbo Mode prioritizes sending transactions faster, even if it means occasionally allowing unprotected transactions.

  
  

• Why use it: If getting into a coin a few seconds faster is worth the potential risk of a slightly worse price (up to 10% default slippage), Turbo Mode is your best bet.

It’s important to note that even in Turbo Mode, some level of MEV protection is still in place. However, the trade-off is speed versus price security.

The Trade-Off: Speed vs. Security

Ultimately, MEV Protection is about balancing the risk of two scenarios:

1. A worse price due to slippage exploitation (Secure Mode minimizes this risk).

   
   

2. A worse price due to slower transaction speeds (Turbo Mode prioritizes speed).

   
   

Understanding this trade-off can help you choose the best MEV Protection setting for your trading style.