How Does a Trader’s Slippage Tolerance Enable a Sandwich Attack?
Slippage tolerance is the range a trader allows the final executed price to deviate from the quoted price. A high slippage tolerance signals to a front-running bot that the trader is willing to accept a significant price change.
The bot exploits this by executing a trade that pushes the price to the edge of the victim's tolerance before the victim's trade, and then executes a trade after the victim's trade to profit from the manipulated price range.