How Does the Transparency of a Public Order Book on a DEX Enable Front-Running?
A public order book, especially on a DEX where pending transactions are visible in the mempool, reveals a large order before it is executed. Front-runners can see this impending order, which they anticipate will move the market price.
They then place their own order ahead of it to profit from the subsequent price change, which is the core mechanic of front-running.
