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Measuring CEX-DEX Extracted Value and Searcher Profitability: The Darkest of the MEV Dark Forest

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  • Fei Wu
  • Danning Sui
  • Thomas Thiery
  • Mallesh Pai

Abstract

This paper provides a comprehensive empirical analysis of the economics and dynamics behind arbitrages between centralized and decentralized exchanges (CEX-DEX) on Ethereum. We refine heuristics to identify arbitrage transactions from on-chain data and introduce a robust empirical framework to estimate arbitrage revenue without knowing traders' actual behaviors on CEX. Leveraging an extensive dataset spanning 19 months from August 2023 to March 2025, we estimate a total of 233.8M USD extracted by 19 major CEX-DEX searchers from 7,203,560 identified CEX-DEX arbitrages. Our analysis reveals increasing centralization trends as three searchers captured three-quarters of both volume and extracted value. We also demonstrate that searchers' profitability is tied to their integration level with block builders and uncover exclusive searcher-builder relationships and their market impact. Finally, we correct the previously underestimated profitability of block builders who vertically integrate with a searcher. These insights illuminate the darkest corner of the MEV landscape and highlight the critical implications of CEX-DEX arbitrages for Ethereum's decentralization.

Suggested Citation

  • Fei Wu & Danning Sui & Thomas Thiery & Mallesh Pai, 2025. "Measuring CEX-DEX Extracted Value and Searcher Profitability: The Darkest of the MEV Dark Forest," Papers 2507.13023, arXiv.org, revised Jul 2025.
    • Handle: RePEc:arx:papers:2507.13023
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