What Is the Role of a “Maximum Extractable Value” (MEV) Bot in Exploiting Slippage?

MEV bots monitor the mempool for pending transactions that will cause high slippage. They then execute a "sandwich attack" by placing a small buy order before the victim's trade (to increase the price) and a sell order immediately after (to profit from the victim's high slippage and the subsequent price reversion).

MEV bots profit from the price movement caused by the victim's trade, which is amplified by low liquidity.