Chapter 8

MEV on Layer 2

Layer 2 rollups have their own MEV dynamics. Sequencers order transactions before batches post to L1 — centralized sequencers today capture ordering profit similarly to L1 builders.

Some MEV migrates to L2 where users actually trade — arbitrage between L2 DEXs, L2 liquidations, and depeg trades. Bridge latency makes cross-domain opportunities harder but not absent.

Projects like Espresso, Astria, and rollup-native upgrades pursue fairer ordering markets. How sequencing evolves will shape whether L2 feels safer for retail or simply moves extraction closer to the app layer.