AI

The Bidding Games: Reinforcement Learning for MEV Extraction on Polygon Blockchain

A team of researchers has developed a reinforcement learning framework for extracting Maximal Extractable Value (MEV) on the Polygon Atlas blockchain. MEV is profit made by strategically ordering transactions within blocks. The current auction mechanism, while reducing network congestion, introduces complex challenges in making optimal bidding decisions under time constraints and incomplete information. The new framework includes a simulation environment that models real-worl
A team of researchers has developed a reinforcement learning framework for extracting Maximal Extractable Value (MEV) on the Polygon Atlas blockchain. MEV is profit made by strategically ordering transactions within blocks. The current auction mechanism, while reducing network congestion, introduces complex challenges in making optimal bidding decisions under time constraints and incomplete information. The new framework includes a simulation environment that models real-world auction dynamics and a bidding agent optimized for real-time performance. Empirical results show the agent achieves 49% Maximum-Profit Capture when deployed alongside existing searchers and outperforms static bidding strategies. --- Why it matters: This research matters to AI engineers because it demonstrates the application of reinforcement learning in a real-world, high-stakes environment, showcasing its potential for improving decision-making under uncertainty. The framework's ability to adapt to changing auction dynamics could have implications for other domains where strategic decision-making is crucial. Source: https://arxiv.org/abs/2510.14642

This article was originally published at: https://arxiv.org/abs/2510.14642