How Does the Public Mempool Enable Front-Running in DeFi?
The mempool is a public waiting area for pending blockchain transactions. Attackers monitor this pool for large, profitable transactions, like a big buy order.
By observing a pending order, a bot can quickly submit its own transaction with a higher gas fee. This higher fee incentivizes validators to prioritize the bot's transaction, ensuring it executes first and profits from the price movement caused by the original order.
This transparency is a core vulnerability exploited by front-runners.