• This thread breaks down how over $4B in MEV (Maximal Extractable Value) has been captured on Layer 2 (L2) networks like Arbitrum, Optimism, and zkSync, highlighting the impact of transaction sequencing policies such as Arbitrum's FCFS, Optimism's Priority Gas Auction (PGA), and FastLane. These policies influence how MEV opportunities like arbitrage and sandwich attacks are handled, with solutions like Timeboost aiming to balance fairness and efficiency by introducing auctions and reducing latency races.