Can a DEX Protocol Be Designed to Be Inherently Resistant to Front-Running?
Yes, a DEX can be designed to be more resistant to front-running. Techniques include using frequent batch auctions, which group trades together and execute them at a single price, neutralizing speed advantages.
Another method is implementing commit-reveal schemes, where users first submit a hidden (committed) version of their trade and later reveal the details, preventing front-runners from seeing the trade's content beforehand. Encrypted mempools that hide transaction details until they are finalized by a validator also serve as a powerful preventative measure.