Mev

📘 Concept: Mev

🧩 ELI5 Allegory:

Imagine you're at a restaurant with friends. You all order food and drinks, but instead of paying individually, you decide to create a shared tab. Each of you adds a little bit of money to the tab, and then the bill is split equally among you. This is similar to how Mev works in the context of decentralized finance (DeFi). Mev is a type of decentralized lending protocol that allows multiple borrowers to borrow from a single pool of funds, with each borrower contributing a portion of the total amount.

📖 Standard Definition:

Mev is a decentralized lending protocol that enables multiple borrowers to borrow from a single pool of funds, with each borrower contributing a portion of the total amount. This allows for more efficient use of capital and reduces the risk for individual lenders. Mev protocols typically operate on a decentralized network, using smart contracts to facilitate the lending process and ensure that borrowers and lenders are held accountable.

Keywords: Mev, decentralized lending, protocol, borrowers, lenders, smart contracts