Glossary
MEV
Maximal Extractable Value — profit taken by controlling the order of transactions in a block.
MEV is the profit available to whoever decides the order of transactions in a block. Validators and searchers can front-run, back-run or sandwich other people's trades.
The visible cost to normal users is worse execution: your swap gets filled at a slightly worse price because a bot inserted itself around it. Sandwich attacks on retail swaps are the most common form.
Related terms
Airdrop
Free tokens distributed to wallet addresses, usually to reward early users of a protocol.
AMM
Automated Market Maker — a protocol that prices assets with a formula instead of an order book.
APR vs APY
APR is the yearly rate without compounding; APY includes compounding and is always higher.
ATH
All-Time High — the highest price an asset has ever traded at.
Bear Market
A prolonged decline, conventionally 20% or more from recent highs.
Bull Market
A prolonged rise driven by new demand, easy credit and rising confidence.