Maximal extractable value (MEV) is the value that can be extracted during the block production process over the standard block reward and gas fees by reordering, inserting, or censoring the order of transactions within a block.
Broadcaster extractable value (BEV) refers to MEV profits that originated based on a broadcaster’s transactions flow.
Currently, transaction originators (non-custodial wallets, node providers, dapps, bridges, etc.) are missing out on an extra revenue stream that could be used to advance user experience through MEV-powered rebates, front-run protection, transaction propagation accelertion, and much more.
Below you can find visualizations for non-MEV transaction order flow, MEV transaction order flow, and BEV transaction order flow.
The user submits a transaction in a non-custodial wallet and broadcasts it to the public mempool. Miners/validators scan the public mempool to find the highest gas price and create a block based on economic incentives.
In this case, a searcher (algorithmic bot running specific trading strategies) scans public mempool seeking transactions with MEV profit potential according to his strategy. It could be on-chain arbitrage, position liquidation, or cross-domain trades). Once such a transaction is detected, a searcher adds an extra transaction to create a bundle with the original transaction and submits that bundle to the chain miners/validators privately.
Upon this transaction order flow, MEV profits are distributed between miners/validators and searchers.
Kolibrio BEV Relay allows broadcasters and their users to own the order flow they create and be able to monetize it.
a) transactions are checked for MEV opportunities before they land in a public mempool. b) when an MEV-positive transaction is detected, Kolibrio BEV Relay will share that transaction with the network of searchers. c) the searcher with the highest broadcaster payment bid wins the auction.
In this case, MEV profits will be distributed between the user, the broadcaster, and the miner.