# How Does the "Front-Running" Issue Manifest Differently in AMMs versus CLOBs? ⎊ Path

**Published:** 2025-12-05
**Author:** Greeks.live
**Categories:** Path

---

## How Does the “Front-Running” Issue Manifest Differently in AMMs versus CLOBs?

In CLOBs, front-running typically involves seeing a large pending order and placing an order ahead of it to profit from the expected price movement. In AMMs, front-running is often executed by MEV bots that observe a pending transaction in the mempool and submit a transaction with a higher gas fee to execute an arbitrage or a sandwich attack immediately before the original transaction, profiting from the price shift it causes.

- [Contrast the AMM Model with the Traditional Central Limit Order Book (CLOB)](https://learn.greeks.live/path/contrast-the-amm-model-with-the-traditional-central-limit-order-book-clob/)

- [How Do Private Transaction Relays like Flashbots Mitigate MEV?](https://learn.greeks.live/path/how-do-private-transaction-relays-like-flashbots-mitigate-mev/)

- [How Do Private Transaction Relays Prevent the Visibility Required for Front-Running?](https://learn.greeks.live/path/how-do-private-transaction-relays-prevent-the-visibility-required-for-front-running/)

- [How Do Different Nodes’ Mempool Sizes and Policies Affect Transaction Visibility?](https://learn.greeks.live/path/how-do-different-nodes-mempool-sizes-and-policies-affect-transaction-visibility/)

- [What Is the Difference between an AMM and a Central Limit Order Book (CLOB)?](https://learn.greeks.live/path/what-is-the-difference-between-an-amm-and-a-central-limit-order-book-clob/)

- [What Is the Primary Difference in How Slippage Is Calculated on an AMM versus a CLOB?](https://learn.greeks.live/path/what-is-the-primary-difference-in-how-slippage-is-calculated-on-an-amm-versus-a-clob/)

- [Explain the Role of the ‘Mempool’ in Preventing or Causing Front-Running in DeFi](https://learn.greeks.live/path/explain-the-role-of-the-mempool-in-preventing-or-causing-front-running-in-defi/)

- [How Does the Public Mempool Enable Front-Running in DeFi?](https://learn.greeks.live/path/how-does-the-public-mempool-enable-front-running-in-defi/)

## Glossar

### [Amms](https://learn.greeks.live/area/amms/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Framework ⎊ Automated Market Makers (AMMs) represent a foundational shift in decentralized finance (DeFi), providing liquidity and price discovery mechanisms without traditional order books.

## Discover More

### [How Does the Public Nature of the Blockchain Mempool Create a Unique Vulnerability for Front-Running?](https://learn.greeks.live/path/how-does-the-public-nature-of-the-blockchain-mempool-create-a-unique-vulnerability-for-front-running/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Public Nature of the Blockchain Mempool Create a Unique Vulnerability for Front-Running?](https://learn.greeks.live/wp-content/uploads/2025/10/Microcosmic-Analysis-Of-Encapsulated-Digital-Asset-Futures-Settlement-Mechanism-Dynamics.webp)

The mempool's public transparency allows bots to see pending trades and use higher gas fees to exploit the first-come, first-served execution model.

### [How Do Centralized Exchanges (CEXs) Manage Slippage Differently than AMMs?](https://learn.greeks.live/path/how-do-centralized-exchanges-cexs-manage-slippage-differently-than-amms/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do Centralized Exchanges (CEXs) Manage Slippage Differently than AMMs?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetric-Collateralized-Futures-Contract-Mechanism-Visualized-Through-Pleated-Material-Structures.webp)

CEXs rely on an Order Book and market makers. AMMs use a mathematical curve and pool size.

### [Is Slippage a Concern in Limit Orders, or Is It Primarily a Market Order Issue?](https://learn.greeks.live/path/is-slippage-a-concern-in-limit-orders-or-is-it-primarily-a-market-order-issue/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Is Slippage a Concern in Limit Orders, or Is It Primarily a Market Order Issue?](https://learn.greeks.live/wp-content/uploads/2025/10/Beige-Surveillance-Casing-Aperture-Representing-Blockchain-Transaction-Monitoring-Mechanisms.webp)

Slippage affects market orders due to immediate execution, but limit orders are protected by the set price threshold.

### [How Does 'Settlement Risk' Manifest in a Two-Party Crypto Derivatives Trade?](https://learn.greeks.live/path/how-does-settlement-risk-manifest-in-a-two-party-crypto-derivatives-trade/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does 'Settlement Risk' Manifest in a Two-Party Crypto Derivatives Trade?](https://learn.greeks.live/wp-content/uploads/2025/10/Exotic-Derivatives-Hedging-Utilizing-A-Smooth-Ivory-Sphere-Against-Teal-And-Indigo-Substrates.webp)

Settlement risk is the failure of one party to deliver after the other has, heightened in bilateral crypto trades due to the lack of a CCP guarantee against counterparty default.

### [What Is "Front-Running" and How Is It Related to DEX Exploitation?](https://learn.greeks.live/path/what-is-front-running-and-how-is-it-related-to-dex-exploitation/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is "Front-Running" and How Is It Related to DEX Exploitation?](https://learn.greeks.live/wp-content/uploads/2025/10/Analyzing-Solid-State-Module-Integrity-for-Decentralized-Finance-Infrastructure-Security-Protocols.webp)

A bot or miner sees a large pending transaction and executes a trade before it, profiting from the victim's price impact.

### [How Does the Size of the Mempool Relate to the Risk of Front-Running?](https://learn.greeks.live/path/how-does-the-size-of-the-mempool-relate-to-the-risk-of-front-running/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Size of the Mempool Relate to the Risk of Front-Running?](https://learn.greeks.live/wp-content/uploads/2025/10/Teal-Encapsulation-of-Digital-Asset-Securitization-Mechanism-and-Option-Hedging-Exposure.webp)

A large mempool increases the number of targets and competition, while a small mempool offers fewer but potentially easier-to-exploit opportunities.

### [What Is the "Best Execution" Obligation and How Does It Relate to Preventing Front-Running?](https://learn.greeks.live/path/what-is-the-best-execution-obligation-and-how-does-it-relate-to-preventing-front-running/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the "Best Execution" Obligation and How Does It Relate to Preventing Front-Running?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Autonomous-Organization-Governance-Token-Structure-Encapsulating-Cross-Chain-Derivative-Swap-Execution.webp)

Best execution requires intermediaries to get the best possible terms for the client; front-running violates this by executing the client's trade at a worse price.

### [How Does 'Front-Running' Violate the Principle of Market Integrity?](https://learn.greeks.live/path/how-does-front-running-violate-the-principle-of-market-integrity/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does 'Front-Running' Violate the Principle of Market Integrity?](https://learn.greeks.live/wp-content/uploads/2025/10/XRay-Visualization-of-Collateralized-Debt-Obligation-Tranches-Securing-Perpetual-Futures-Swaps.webp)

Allows unfair profit from non-public trade information, creating an uneven playing field and resulting in a worse price for the victim.

### [Why Are Illiquid Crypto Options Often Traded on RFQ Platforms Instead of CLOBs?](https://learn.greeks.live/path/why-are-illiquid-crypto-options-often-traded-on-rfq-platforms-instead-of-clobs/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Why Are Illiquid Crypto Options Often Traded on RFQ Platforms Instead of CLOBs?](https://learn.greeks.live/wp-content/uploads/2025/10/Intertwined-Digital-Assets-and-Option-Volatility-Surfaces-Modeling-Abstract-Representation.webp)

RFQ guarantees a quote for illiquid options and allows for block negotiation without disrupting the thin market on a CLOB.

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