How Does the Depth of a Liquidity Pool Influence the Effectiveness of a Sandwich Attack?

The depth of a liquidity pool, meaning the total value of assets locked (TVL), is inversely proportional to the effectiveness of a sandwich attack. A deeper pool requires a much larger trade to cause a significant price impact.

In a shallow pool, a front-runner can use a smaller amount of capital to execute their buy and sell orders, causing a larger price swing and thus a more profitable sandwich. Deep pools are more resilient to price manipulation.