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What Is the Primary Difference in Front-Running Risk between CEXs and DEXs?

CEX risk is internal (insider information), while DEX risk is external (mempool visibility and transaction ordering).
Greeks.Live13.11.25

What Is the Primary Difference in Front-Running Risk between CEXs and DEXs?

Centralized Exchanges (CEXs) primarily face front-running risks from internal actors, such as employees or high-frequency traders with privileged data access. This is a traditional market integrity issue, often illegal.

Decentralized Exchanges (DEXs) face risk from external, automated bots that exploit the public visibility of the mempool (pending transactions). These bots use high gas fees to force their trade to execute before the target transaction.

The transparency of the blockchain is the core vulnerability for DEX front-running.

How Do Private Transaction Relays Prevent the Visibility Required for Front-Running?
How Does a Decentralized Exchange (DEX) Differ from a Centralized Exchange (CEX)?
How Does the Transparency of a Public Order Book on a DEX Enable Front-Running?
How Does a ‘Revert’ Transaction on a DEX Differ from a Simple Cancellation on a CEX?

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