How Can a Protocol Use Slippage Tolerance Settings to Prevent Front-Running Attacks?
Users set a slippage tolerance (e.g. 0.5%) for their trade.
If the final executed price is worse than the initial price by more than this tolerance, the transaction is automatically reverted. Front-running bots attempt to insert a transaction before the user's to profit from the price change.
By setting a low tolerance, the user ensures that the front-runner's transaction will cause their own to revert, making the attack unprofitable.