You who swear allegiance to Meituan, today I heard from my friend that a local dog that goes against the sky is going to pull a hundred times

I went home at night and recharged 1000 U, ready to go

Others say, "Life only requires two ten times."

I, Li Ergou, only need 1 night to

Tonight, I will change my destiny against the will of heaven!

Buy now, don’t be afraid, Mancang Shuo!

As a result, Ergou’s transaction records are as shown in the following two pictures.

It was clearly a deal at the current price, but it took a 3x increase in price to get my money back.

Li Ergou collapsed directly, Gou’s blockchain scam! The computer monitor was smashed to pieces

Hey... In the currency circle, scientists have a hundred ways to kill us, and what Li Ergou encountered today is the famous one: clip robot/sandwich attack

In simple terms, it is the moment when Li Ergou places an order to buy a large amount of Tugou coins.

The Clip Robot discovered his transaction, used higher gas to preemptively pack it with self-built nodes, trade in advance faster, and then sold the coins bought at a low price to Li Ergou at a high price. All this happened in a few seconds. Within (a block), you can only see the three transaction records that occurred when you check the transaction records.

One buys and one sells, the two dogs are caught in the middle and become a bitter melon sandwich.

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This is not an isolated case of Li Ergou. Sandwich attacks occur frequently in the currency circle every day:

1. In 2020, an attack known as the "eating sandwich" occurred on Uniswap, causing losses of more than $38 million.

2. Several sandwich attacks occurred on Mochiswap in early 2022, resulting in a loss of approximately US$20 million.

3. In April 2022, a team used a sandwich robot to attack and arbitrage NFT transactions in the Axie Infinity game, resulting in a loss of US$5.5 million.

4. In 2023, data shows that more than 100 sandwich attacks occur every day on the Ethereum blockchain.

The practice of front-end operation to manipulate transactions is still prohibited, and the fairness and stability of the decentralized trading system still need to be improved.

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Let’s start learning what a sandwich attack is and how to prevent it #LearnwithCIAN

A sandwich attack is a form of front-running that commonly occurs on decentralized exchanges (DEXs).

It occurs when malicious actors exploit the transparency and mechanics of blockchain transactions to gain an unfair advantage.

working principle

1. Discovering large transactions: The attacker monitors the blockchain to find large buy and sell orders that have not yet been processed.

2. Execute orders around large transactions

3⃣ Before the large transaction: The attacker places a buy order for the same asset before the large transaction, with a slightly higher gas fee to ensure that it will be processed first.

4⃣ After a large transaction: Once a large transaction is executed, it usually increases the price of the asset, and the attacker immediately sells the asset to profit from the price difference.

5⃣ Result: Large transactions are sandwiched between the attacker’s buy and sell orders, resulting in increased slippage and poor prices obtained by the original trader.

Influence

Market Impact: These attacks can cause significant market volatility and impact price discovery.

Trader losses: The original trader gets a worse trade, often with increased slippage and unfavorable execution prices.

Ethical concerns: Sandwich attacks are seen as exploitative and raise questions about fairness and market manipulation in DeFi.

💎Prevent sandwich attacks

Slippage Tolerance: Setting a lower slippage tolerance may help, although it may result in failed trades.

Private Transactions: Some platforms offer ways to hide transaction details until execution.

Improved DEX mechanisms: Some DEXs are developing solutions to mitigate these types of attacks, such as using batch auctions.

This knowledge point is provided by @CIAN_protocol Defi class

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I hope that learning from this article will help you develop your survival skills in the cryptocurrency world.

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