Why are sandwich assaults so frequent in DeFi?
DeFi operates on distributed public ledgers, that means anybody can monitor pending transactions. This transparency, mixed with the mechanics of AMMs, creates splendid circumstances for malicious bots to detect weak trades and execute sandwich assaults.
Key components that make customers inclined:
- Public transaction mempools: Pending transactions are seen to everybody, together with bots.
- AMM mechanics: Liquidity pooled between tokens on a bonding curve affords minimal management over commerce execution and exposes customers to slippage.
- Lack of information: Many customers chalk up losses to market volatility, unaware they’ve been exploited.
