How Do Newer AMM Designs, like Uniswap V3, Attempt to Mitigate Sandwich Attacks?

Uniswap V3 introduced Concentrated Liquidity, allowing liquidity providers (LPs) to allocate capital within specific price ranges. While this increases capital efficiency, it doesn't directly prevent sandwich attacks.

However, V3's architecture, combined with MEV mitigation services, can help. The primary mitigation is often the implementation of a transaction batching or a private transaction submission layer, rather than a feature of the V3 formula itself.

The increased complexity of the liquidity profile also makes generalized sandwich bots less effective.