Maximum Extractable Value for Crypto

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  • All Major CEX and DEX Supported
  • Simple Monthly Pricing Structure
  • No Deposits or Fund Lockups

What is Maximum Extractable Value?

Maximum Extractable Value (MEV) refers to the potential profits that can be gained by project owners by creating artifical pricing levels. Specifically for tokens, MEV encompasses strategies that change the order book in a way so certain price levels become more dominant for buyers.

Volatilex does not engage in manipulative value extraction methods such as front-running, back-running, and sandwich attacks. Our algorithms simply create artificial price levels for certain periods of time to maximize the amount and value of sellable tokens.

Order Book Management

Volatilex can place large buy orders that we do not intend to execute to create the illusion of demand, which drives up the price. Once the price is sufficiently high, the large holder can sell their tokens and then the orders are cancelled.

Layering involves placing multiple orders at different price levels to create more convincing market depth and demand. This strategy aims to signal other market participants that there is more buying or selling interest than there actually is, thereby influencing the price levels of the asset.

This process requires constant monitoring and adjustment of orders to react to price changes, trading volumes, and other market signals. Order book management also includes risk management techniques to protect against adverse price movements that could result in significant losses.

Does MEV work on a DEX?

Maximum Extractable Value doesn't work on a decentralized exchange (DEX) since there is no order book. Most DEXs use Automated Market Makers (AMMs) instead of traditional order book systems. AMMs use smart contracts to create liquidity pools where users can trade against the liquidity provided by other users.

Market making on a DEX involves providing liquidity to AMM-based pools rather than managing order books. It has high capital requirements, and comes with unique challenges such as impermanent loss and gas fees. It also requires the liquidity provider to outright own tokens from both sides of the trade.

Volatilex is FinTech company specializing in Token Market Making for Crypto Projects, established Web3 Companies, and Blockchain Startups.

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