A recent research paper reveals that max-extractable value (MEV) arbitrageurs on Ethereum are becoming more centralized, negatively impacting the network's decentralization. It discusses how these arbitrageurs, referred to as 'searchers,' are increasingly linked to builders, the entities responsible for constructing blocks on the Ethereum network. The research highlights the exploitation of price differences between centralized (CEX) and decentralized (DEX) exchanges, with consequences including monopoly pricing and increased vulnerability to censorship. Concerns arise with the vertical integration of searchers and builders, leading to a concentration of power and resources. The authors warn that with 80% of blocks proposed by just two entities, decentralization is compromised, threatening Ethereum's future. They suggest that the current Proposer-Builder Separation system may unintentionally foster these centralization pressures. Ethereum co-founder Vitalik Buterin has acknowledged the risks of MEV and advocated for alternative solutions to promote network fairness and security.

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