MEV driving institutions away from DeFi, costing users dearly: Crypto exec

Aditya Palepu, CEO of DEX Labs, asserts that Maximal Extractable Value (MEV)—the practice of reordering transactions for profit by miners or validators—is a significant barrier preventing financial institutions from adopting Decentralized Finance (DeFi). This exclusion ultimately harms retail users. Palepu explains that the visibility of transaction order flow data before execution exposes institutions to market manipulation, such as front-running and "sandwich attacks." The proposed solution involves processing transactions privately within trusted execution environments, where orders are encrypted client-side and decrypted only inside a secure enclave after sequencing, making front-running impossible. The absence of institutional participation, which typically provides essential trading infrastructure, leads to reduced liquidity, increased volatility, greater market manipulation, and surging transaction costs for everyone in the DeFi ecosystem.

(Source：Cointelegraph)