How Can Users Protect Themselves from Sandwich Attacks in DeFi?
Users can protect themselves by using private transaction relays (like Flashbots Protect) to prevent their transaction from entering the public mempool. They should also set a low, but realistic, slippage tolerance to limit the potential profit of an attacker.
Using DEX aggregators that automatically route trades through private pools or use anti-MEV mechanisms can also offer protection.
Glossar
Private Transaction Relays
Relay ⎊ Private Transaction Relays (PTRs) represent a paradigm shift in cryptographic transaction routing, particularly relevant within decentralized finance (DeFi) and options trading ecosystems.
Sandwich Attacks
Execution ⎊ Sandwich attacks, within cryptocurrency derivatives and options trading, represent a sophisticated market manipulation tactic exploiting order book dynamics.
Anti-Mev Mechanisms
Mechanism ⎊ Anti-MEV mechanisms represent a suite of technical and protocol-level designs implemented within decentralized finance to mitigate the extraction of value by block producers or arbitrageurs.