On-chain profit strategies and MEV extraction

The development of the DeFi sector (especially over The Summer of DeFi) has created a wide variety of profitable opportunities that are not possible in the traditional financial market. The emergence of various MEV solutions has further increased the number of trading strategies, mainly by harming other ecosystem users rather than exploiting market inefficiencies.

Currently, the lower estimate of the volume of profit from such strategies is $738M+ according to Flashbots. However, this amount only includes MEV (Miner or Maximum Extractable Value) on Ethereum and does not include new DeFi protocols and many sophisticated strategies that have emerged since the creation of the Flashbots dashboard.