Balancer V3 Introduces MEV-Cap Hook to Benefit Liquidity Providers

🤖 MEV Bots Pay Their Dues

By Balancer
May 1, 2025, 4:18 PM
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Balancer V3 launches MEV-Cap Hook, a new feature that redirects Maximal Extractable Value (MEV) back to liquidity providers.​ The system works by dynamically adjusting pool fees based on priority fees paid by MEV bots on OP Stack chains like Base and Optimism.​

Key features:

  • Higher priority fees trigger higher dynamic pool fees
  • Captured value stays within the pool
  • Works across all pool types, not just ETH pairs

The mechanism allows MEV bots to operate while ensuring value flows back to LPs instead of leaking out.​ Currently live on Base, with plans to expand MEV protection offerings through collaboration with CoW Protocol.​

Sources
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