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.