MEV Capture Efficiency on Bitcoin

Bitcoin System

Moderate

Protocol & Architecture

Confidence Score

74%

Last updated 19 days ago

Current Thesis

Bitcoin MEV is captured inefficiently today (builder/miner extraction ~40-60% of available value). Arch's transparent ordering and FIFO guarantees reduce unnecessary MEV by 60-70%, enabling lower slippage for users. This is Arch's principal UX advantage vs centralized AMM competitors.

Evolution of Belief

Aug 1, 2025

MEV on Bitcoin is inevitable and unavoidable.

Reason: Ethereum MEV history

Feb 15, 2026

Arch's design can reduce MEV exposure by 60-70% vs opaque systems.

Reason: Testnet MEV analysis; FIFO ordering testing

Key Data Inputs

Avg Slippage (Arch)

Average slippage on median trade

0.18%

Trend: Down

Avg Slippage (Ethereum)

Ethereum DEX average

0.45%

Trend: Stable

MEV Capture (Arch)

% of theoretical MEV captured by validators

12-15%

Trend: Down

Linked Research Nodes

depends on

Bitcoin Fee Market Dynamics

Open Questions

•Can we reduce MEV below 10% even with majority-malicious validator set?
•How does competitive MEV racing affect our UX advantage?

Downstream Decisions

Product

High Impact

Use lower slippage as headline UX advantage in marketing; 2-3x better than Ethereum DEXs

Engineering

High Impact

Invest in FIFO ordering guarantees; critical to product differentiation

Change Log

19 days ago

Updated slippage benchmarks from latest testnet data

Protocol & Architecture Researcher