Abstract
The rise of cryptocurrencies has brought with it new math problems with new sets of constraints. The MEV problem entails solving for the ordering of pending trades that maximizes a block creator's profit. In decentralized finance, time is a big constraint, so an exhaustive search of all possible orderings is impossible. I propose a solution to the MEV problem that gives a near optimal result that can be solved in a reasonable amount of time. I layout the method and the formulas required for my solution. Additionally, I test my solution on synthesized data to show that it works as desired.
Degree
MS
College and Department
Physical and Mathematical Sciences; Mathematics
Rights
https://lib.byu.edu/about/copyright/
BYU ScholarsArchive Citation
White, Granton Michael, "Optimal Ordering to Maximize MEV Arbitrage" (2023). Theses and Dissertations. 9994.
https://scholarsarchive.byu.edu/etd/9994
Date Submitted
2023-06-09
Document Type
Thesis
Handle
http://hdl.lib.byu.edu/1877/etd12832
Keywords
arbitrage, cryptocurrency, blockchain, mev, maximal extractable value, miner extractable value, front-running, decentralized finance, defi, optimization, ordering
Language
english
