What is MEV?

What is MEV, and how does tSOL benefit from it?

Maximum Extractable Value (MEV) refers to profit opportunities that arise due to the specific ordering of transactions on the blockchain. These profits are captured by certain participants when they detect opportunities in how transactions are executed. For example, a large trade on an automated market maker like Orca may cause the price to dip, creating arbitrage opportunities compared to other platforms like Raydium or Serum. Traders will rush to exploit this price difference—this race for profit is what we call MEV.

Another example is when a large account on Solend is close to liquidation. Bots race to liquidate the account once the price crosses a threshold, competing for the profit that comes with executing this transaction first.

MEV is a natural part of any financial system, including decentralized ones like Solana. It’s similar to real-life scenarios: imagine when a concert is announced and fans rush to buy tickets to avoid reseller markups—this is also a form of MEV.

At Toby, we aim to capture MEV efficiently and share the rewards with our stakers and validators. By doing so, we improve the decentralization and performance of the Solana network, while offering additional rewards to those who participate in staking with us.

The Problem of MEV Spam

With the growth of Solana, the network has occasionally been bogged down by MEV-related spam. Since Solana’s transaction fees are low, traders deploy bots that send the same transaction hundreds of times, hoping one gets through and profits from an MEV opportunity.

Think of it like a ticketing website crashing when fans refresh it non-stop to secure concert tickets—except here, the network is spammed by bots trying to land a profitable trade.

This kind of MEV spam will only increase as Solana grows and traders become more sophisticated, posing a real problem for network performance.

Toby’s MEV Marketplace Solution

At Toby, we’ve addressed MEV spam with an auction-based system designed to benefit both stakers and the Solana network. Here’s how it works: instead of spamming transactions, traders bid for priority in transaction ordering. These bids are assessed by third-party block engines running simulations to determine which sequence of transactions delivers the highest value. The winning bids are then passed along to validators and stakers (those holding tSOL).

By using this Open-MEV marketplace, Toby reduces spam while maximizing MEV profits for the network’s participants. And the best part? All rewards from these auctions are passed back to stakers and validators, with only a modest commission.

tSOL MEV Rewards

As a tSOL holder, you benefit directly from these MEV rewards. The profits from the MEV auctions are distributed to stakers, providing an extra source of yield. What makes tSOL unique is that these rewards come from guaranteed auction proceeds, so you’re not exposed to the risks associated with MEV trading itself.

At Toby, we’re committed to giving you the best returns while ensuring Solana's network remains secure and efficient. With our Open-MEV marketplace, you’re not just staking—you’re staking smarter.