What Is a ‘Just-in-Time’ (JIT) Liquidity Provision Attack on an AMM?
A JIT attack involves a market maker observing a large incoming trade, quickly depositing liquidity to profit from the trade's fees, and then immediately withdrawing the liquidity. This action extracts value from the user's trade by temporarily monopolizing the fee, effectively harming long-term liquidity providers who are diluted and miss out on the fee.