Skip to main content

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.

How Do Transaction Ordering Mechanisms on Blockchains Enable Front-Running?
What Regulatory Frameworks Govern Front-Running in Traditional Options and Derivatives Markets?
How Does Front-Running Occur in the Context of Smart Contracts?
Can Private Mempools Effectively Prevent Front-Running Attacks?