Ethermine mining pool added support for the MEV arbitrage strategy

Ethereum’s mining pool Ethermine has implemented a Miner Extracted Value (MEV) arbitrage strategy that will allow miners to compensate for the decline in profits following the implementation of a “burn commission” system.

The Austrian mining pool Ethermine, which controls about 20% of the hashing power of the Ethereum network, was the first large pool to implement the MEV arbitrage strategy. According to records Bitfly on Twitter, this will offset “the upcoming decrease in mining rewards caused by the implementation of EIP 1559.”

As a reminder, Ethereum developers recently made the decision to include EIP 1559 in the London hard fork, scheduled for July. EIP 1559 implies burning ETH when paying commissions. This will significantly reduce the constantly growing transaction fees, but will affect the income of miners, who can lose up to 50% of their profits.

To express their disagreement with the proposal, some of the Ethereum miners are planning to unite on April 1 for a “show of strength” and send the hash rate to the Ethermine pool for 51 hours. Following this announcement, Ethereum developers published EIP 3368, which implies an immediate increase in block reward to 3 ETH and then a decrease to 1 ETH within two years after the implementation of EIP 1559.

MEV allows miners to use their arbiter position to be included in blocks of profitable trades. As a reminder, trading bots capitalizing on the flaws in Ethereum’s infrastructure made a profit of $ 107 million in February and $ 314 million since the beginning of 2020. Last fall, an anonymous researcher accused Ethereum miners of manipulating transactions for arbitrage on DeFi.

The MEV strategy can really help miners offset the decline in commission profit. According to the tracker MEV Flashbots, in the last 24 hours alone, a profit of about $ 3.8 million was made.

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