Decentralized exchange aggregator 1inch is highlighting a growing issue across DeFi markets, Maximal Extractable Value (MEV), describing it as a “hidden tax” that impacts nearly every public onchain swap.
In a recent X post, 1inch explained how bots continuously monitor blockchain mempools to identify pending transactions before they are finalized, allowing attackers to front-run, back-run, or sandwich user trades for profit.
According to the company, this architecture leaves many DeFi users exposed to worse execution prices and increased slippage without realizing it.
“Most DeFi users don’t see it happening, but they pay for it on every swap,” 1inch stated.
How MEV exploits DeFi swaps
1inch explained that standard decentralized exchange transactions become vulnerable the moment they broadcast publicly to the mempool. Bots can detect pending trades before block confirmation and execute competing transactions around them to extract value.
The company noted that common MEV strategies include front-running user transactions, sandwich attacks, and back-running profitable trades
According to 1inch, the delay between transaction broadcast and final execution creates an exploitable window where bots can manipulate trade outcomes.
1inch moves swaps to off-mempool based execution
To reduce this exposure, 1inch said it uses an intent-based execution model instead of relying on public mempool broadcasting.
Under this system, users simply define the desired outcome of a trade — such as swapping one token for another at the best available rate — while external resolvers compete to execute the order.
The final transaction is then bundled and submitted off-mempool, limiting visibility to MEV bots.
“The attack surface for bots disappears,” the company stated.
1inch added that resolver competition can also improve execution quality by sourcing liquidity from decentralized exchanges, centralized exchanges, and private inventory simultaneously.
Gasless swaps and better trade execution
The resolver-based structure also enables gasless execution for users. The resolvers cover transaction fees internally and factor those costs into execution pricing, allowing users to complete swaps without holding native gas tokens.
The company said this model not only reduces MEV exposure but can also improve pricing efficiency and lower slippage across trades.
The process itself remains simple for users to connect a wallet, choose tokens, sign a swap order, resolvers compete for execution, and assets arrive directly in the wallet.
1inch emphasized that MEV protection operates automatically in the background without requiring additional settings or tools.
The discussion around MEV protection has intensified as decentralized trading volumes continue growing across crypto markets.
Earlier this week, KuCoin Web3 Wallet integrated with 1inch to offer gasless and MEV-protected swaps, enabling users to execute trades without needing to hold native gas tokens.
The partnership reflected a broader industry trend toward improving execution quality, reducing bot exploitation, and making DeFi trading more accessible for mainstream users.
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