Preventing Sandwich Attacks: MEV & Front-Running Defense in DeFi
Gokul Alex and Tejaswa Rastogi dissect Maximal Extractable Value (MEV) sandwich attacks on decentralized exchanges, presenting defensive anti-frontrunning protocols.
Summary
The Rise of Maximal Extractable Value (MEV)
Public blockchain mempools allow predatory bots to monitor pending decentralized exchange transactions and front-run high-value trades for guaranteed profit.
Deconstructing Sandwich Attacks on AMMs
Gokul Alex and Tejaswa Rastogi explain how sandwich bots execute a front-run buy order to inflate asset prices, allow the victim's trade to clear at maximum slippage, and back-run sell.
Measuring the Economic Impact on DeFi Traders
The speakers quantify the millions of dollars extracted from retail traders daily across Uniswap and SushiSwap liquidity pools.
Architecting Private Mempools and Slippage Guards
The authors review mitigation solutions—including Flashbots Protect private RPC endpoints, dynamic slippage tolerance algorithms, and MEV-resistant AMM designs.
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