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How Does Network Latency Contribute to Slippage in Decentralized Exchange (DEX) Trading?

Network latency in DEX trading allows for price changes or MEV front-running between transaction broadcast and on-chain execution, resulting in slippage.
Greeks.Live08.11.25

How Does Network Latency Contribute to Slippage in Decentralized Exchange (DEX) Trading?

In DEX trading, network latency (the time for a transaction to be mined and confirmed) is a major contributor to slippage. The price on the DEX's automated market maker (AMM) or order book can change significantly between the time a user broadcasts a transaction and when it is executed on-chain.

This time gap allows for front-running by 'MEV' bots or simple price movement, leading to execution at a worse price.

How Does the Execution Risk in a Mempool-Based DEX Differ from a CLOB-based Options Exchange?
What Are the Differences between Front-Running in Traditional Finance and on DEXs?
How Does Front-Running Relate to MEV and Fair Transaction Ordering?
How Can MEV (Maximal Extractable Value) Be Exploited through Latency Advantages?

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