Front-running BOTs

in crypto •  3 years ago 

These bots, known as "front runners," examine a mempool of pending transactions, taking advantage
of the validation period between two blocks on Ethereum to profit from a future huge transaction
that would affect the price. One well-known sort of front-running is when a bot makes a buy order
ahead of the target transaction at a greater fee to get priority. Then the front-runner places a sell
order with a slightly lower fee than the target transaction to sell right after. In short, these frontrunning bots make the value that the user wants to receive not equal to the real value he will
receive. This process is called a "sandwich attack" because the target order is taken between the two
orders.
We can also mention various other types of front-running such as the basic front-run, the insertion
attack, or the suppression attack. It is good to know that if you use Kromatika to make your trades,
you place and pull liquidity to achieve a trade and avoid a traditional swap! So you can also avoid
swap fees, front running bots, slippage.

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