Does Reducing Slippage Tolerance Completely Prevent a Sandwich Attack?

Reducing slippage tolerance significantly mitigates the profitability and likelihood of a sandwich attack, but it does not completely prevent it. A very low tolerance forces the attack to fail if the price moves too much.

However, an attacker could still attempt the attack if the market conditions are volatile or if they believe they can move the price just enough to profit without causing the victim's trade to revert. It serves as a strong deterrent by drastically narrowing the attacker's profit margin and increasing their risk of a failed attack.

Does Slippage Affect the Profitability of an Arbitrage Trade?
What Is “Slashing” and How Does It Secure the Network in a PoS System?
How Does “Slashing” in PoS Function as a Deterrent against Malicious Actors?
How Can a Trader Use a Low Slippage Setting to Mitigate a Sandwich Attack?
What Role Does Slippage Tolerance Play in Protecting a Trader from Being Front-Run?
What Is Slippage Tolerance and How Does Adjusting It Mitigate Front-Running Risk?
What Is a “Sandwich Attack” and How Is It a Form of MEV?
Does the MTM Process Eliminate All Systemic Risk?

Glossar