SANDWICH
Updated 20 days ago
The problem: Crypto traders lose millions every month because their transactions are being sandwich-attacked. There are dozens of bots continuously monitoring the mempool to find transactions they can frontrun. So far it was difficult for traders to estimate whether their swaps on decentralized exchanges were susceptible to sandwich attacks or not...
The attack: If a victim swaps asset A for asset B, this will increase the price of A in the respective liquidity pool. Bots spot the victim transaction before it executes. They then release two transactions that surround the victim trade (frontrunning and backrunning it). In their first transaction, 'Attacker Tx1', they swap A for B. After the victim transaction executes, they swap B for A, and make a profit due to the price increase after the victim transaction...
Check whether your Uniswap trade can be sandwich-attacked, and get an optimal order split.