Research Note: Review of Maximal Extractable Value and Blockchain Oracles

This research provides technical insights and market perspectives on important elements of blockchain technology, and broader considerations for industry, academia and regulators.

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We have identified various elements at the technical level of blockchain technology that are altering the way in which cryptoasset services and Decentralised Finance (DeFi) are provided.

This research analyses two novel concepts of blockchain technology, Maximal Extractable Value (MEV) and blockchain oracles. As well as expanding functionality of decentralised financial applications, these features have been identified as introducing risks and potential sources of vulnerability. This review has helped to inform our understanding and build regulatory expertise on emerging aspects of blockchain technology.

Cryptoassets remain a high-risk investment, and consumers should be aware of the risks. Cryptoasset firms marketing to UK consumers will now be required to comply with the UK financial promotions regime. Consumers who choose to purchase cryptoassets should be prepared to lose all their money and are unlikely to be covered by financial protections such as the Financial Services Compensation Scheme. 


Rebecca Humphry, Pavle Avramovic, Francis Acevedo, Sami Alkhair and Dr Arthur Gervais from University College London.

With thanks to Futuresight Business Intelligence Ltd for undertaking the interviews used in this Research Note.


Research notes contribute to our work by providing rigorous research results and stimulating debate. While they may not necessarily represent the position of the FCA, they are one source of evidence we may use to discharge our functions and inform our views. We strive to ensure research outputs are accurate, through checks including independent referee reports, but the nature of such research and choice of research methods is a matter for the authors using their expert judgement. To the extent that research notes contain any errors or omissions, they should be attributed to the individual authors, rather than the FCA.