What Is a “Just-in-Time” (JIT) Liquidity Attack in the Context of Concentrated Liquidity?
A JIT attack is an advanced MEV strategy where a bot detects a large incoming swap, quickly deposits a concentrated liquidity position just before the swap executes, captures the trading fees from the large swap, and then immediately withdraws the liquidity. This happens within the same block.
JIT providers earn a disproportionate share of the fees without taking on any long-term impermanent loss risk, effectively front-running long-term LPs who have provided the continuous liquidity.