Have you noticed that the Binance wallet transaction interface has a default option called 'MEV Protection'?
Many users who are new to DEX (decentralized exchanges) may not understand what this protection is for, and there are even some 'malicious individuals' inciting everyone to turn it off. Today, I will explain in the simplest way why MEV protection should not be disabled.
🥪 First, the conclusion:
If you turn off MEV Protection, you might be getting 'clamped' every time you trade.
This 'clamp' refers to a type of MEV attack called 'Sandwich Attack'.
🚨 What is MEV and Sandwich Attack?
(1) When initiating a transaction on the blockchain, your transaction first enters a 'public pool' (mempool) waiting to be packed.
(2) All technically skilled players, including 'MEV bots', can see your transaction in advance, such as what coin you want to buy, how much, and what the slippage is.
(3) The packaging of blocks is determined by miners (or validators), who can arbitrarily adjust the execution order of transactions.
(4) The 'clamp' will place a large buy order in front of you, pushing the price up; once your transaction is completed, they will immediately sell out for profit.
(5) On the surface, it seems like you completed the transaction, but the buying price was artificially inflated, and all the extra money went into someone else's pocket.
This is the most typical MEV sandwich attack.
🛡️ How does MEV Protection protect you?
The 'MEV Protection' feature provided by the Binance wallet is actually:
(1) By cooperating with 'friendly miners', your transaction does not enter the public pool.
(2) Your transaction will be privately sent to trusted miners, where others cannot see it, and naturally cannot rush or cut in line in advance.
(3) Simply put, it means 'quiet transactions, giving no chance to the clamps'.
🐷 If you still don't understand, consider this analogy:
(1) When you go to the market to buy pork, the market price is 15 yuan per jin, and the highest price you are willing to accept is 20 yuan;
(2) You wrote a note and placed it in the vendor's box, saying: I want to buy 1 jin, and any price below 20 yuan is fine;
(3) A 'bad person' sneaks a peek at your note and rushes to buy 2 tons first, pushing the market price up to 20 yuan;
(4) Then your order is completed, but the price has been pushed to the highest—20 yuan.
(5) Then the 'bad person' sells the 2 tons they bought at a high price, profiting from the extra 5 yuan you paid.
You felt nothing throughout the process, but you were 'clamped'.
📣 Final reminder:
If you are trading on DEX in the Binance wallet, make sure MEV Protection is enabled.
This is not a trivial setting, but a 'cloak of invisibility' in your fight against the dark forest.
Flipping Alpha can rely on luck, but not on mechanisms.
Not understanding MEV means you won't even know how you lost when you get clamped.
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PS: If you still have questions, feel free to leave a message, and I will answer everyone.