DEX Labs CEO: MEV is pushing institutional investors away from DeFi

Maximum Extractable Value (MEV) refers to the process by which miners or validators rearrange transactions in a block to extract profits, which hinders the adoption of decentralized finance (DeFi) by Financial Institution Groups to the detriment of retail users. According to Aditya Palepu, CEO of DEX Labs, DEX Labs is a major contributor to decentralized crypto derivatives exchange DerivaDEX. All electronic trading markets have Maximum Extractable Value or similar issues, which stem from information asymmetry in the ordering of transaction data. Financial Institution Groups are unable to adopt DeFi due to the lack of transaction privacy, as it exposes them to the risk of market manipulation and preemptive trading, as transactions are made public before execution.