What Is the Role of Slippage Tolerance in Protecting against Front-Running?
Slippage tolerance is the maximum percentage difference a trader is willing to accept between the expected price and the executed price of their trade. Setting a low slippage tolerance can protect against front-running and sandwich attacks because it makes the attack less profitable or even impossible.
If the front-runner's price manipulation exceeds the victim's set tolerance, the victim's transaction will fail, preventing the attacker from completing the sandwich.