What Are “Just-in-Time” (JIT) Liquidity Provision Attacks?
JIT attacks are a form of front-running where a malicious actor provides a large amount of liquidity just before a large swap, collects the trading fees from that single swap, and then immediately withdraws their liquidity. This allows them to capture a disproportionate amount of fees for a very short period, essentially stealing potential fee revenue from long-term LPs.
This exploit is common in high-throughput, low-latency environments.
Glossar
Jit Attack
Exploitation ⎊ A Jit Attack, within cryptocurrency and derivatives, represents a targeted manipulation of just-in-time (JIT) compilation processes in smart contracts to induce unintended execution paths.
Jit Liquidity
Momentum ⎊ The concept of Jit Liquidity, particularly within cryptocurrency derivatives and options markets, reflects the immediate availability of funds to satisfy margin requirements or execute trades, crucially differentiating it from traditional liquidity assessments.
Block Builders
Role ⎊ Block Builders play a critical role in proof-of-stake blockchain networks, particularly in the context of Ethereum's post-Merge architecture.