Why are sandwich assaults so widespread in DeFi?
DeFi operates on distributed public ledgers, which means anybody can monitor pending transactions. This transparency, mixed with the mechanics of AMMs, creates splendid situations for malicious bots to detect susceptible trades and execute sandwich assaults.
Key elements that make customers vulnerable:
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 understanding: Many customers chalk up losses to market volatility, unaware they’ve been exploited.
