The development of decentralized finance (DeFi) has provided fertile soil for the operation of MEV Bots. DeFi protocols provide efficient and low-cost trading mechanisms through smart contracts and decentralized exchanges (DEX), and these platforms have become the main operating objects of MEV Bots.

Many protocols in the DeFi ecosystem have the characteristics of large price volatility and dispersed liquidity, which provides arbitrage space for MEV Bot. By monitoring the changes in liquidity pools, price fluctuations and other information in real time, MEV Bot can execute strategies such as flash loans and arbitrage to make profits. For example, when the asset price of a DeFi platform is temporarily unbalanced, MEV Bot can obtain low-priced assets through instant transactions and sell them at a higher price on another platform.
In addition to arbitrage, MEV Bot can also provide liquidity between exchanges to help maintain market stability, especially when the market fluctuates violently, providing an effective price discovery mechanism.