With MEV bots optimizing transaction ordering, how are smaller DeFi participants truly impacted? Is it mostly a tax on their transactions, or are there strategies for retail to mitigate being front-run or sandwich attacked effectively without resorting to private RPCs?
It's definitely a tax, no doubt about it. For small trades, the gas fees already eat into profits, and then MEV just adds another layer. It's frustrating to see your order getting sandwiched.
Has anyone actually tried using those 'MEV protection' services or decentralized sequencers? I'm curious if they make a noticeable difference for smaller accounts, or if they're just adding another layer of complexity.
I'd argue it pushes smaller traders towards less liquid pools or exchanges where MEV isn't as prevalent, or at least less aggressive. It's not ideal, but it's a way to avoid the worst of it.
I think 'tax' is a bit strong. While MEV certainly extracts value, it's more about understanding the mechanics. Using limit orders instead of market orders can help, and being strategic about when you trade can reduce exposure.
Private RPCs are pretty much the only real mitigation for front-running if you're making substantial trades. For small retail, it's just part of the game unfortunately. You either accept it or you don't play.