Batch Swap Attack

Definition ∞ A batch swap attack involves manipulating transaction ordering within a block to gain an unfair advantage in decentralized exchanges. This attack capitalizes on the ability to see pending transactions and insert malicious swaps before or after them. The attacker profits by front-running or sandwiching legitimate trades, exploiting temporary price shifts. Such actions undermine fair market execution and user trust in decentralized finance platforms.
Context ∞ News reports often cover batch swap attacks in the context of MEV (Maximal Extractable Value) exploits and network congestion. These incidents raise concerns about transaction fairness and the integrity of automated market makers (AMMs). Protocols are developing countermeasures like batch auctions and specialized mempools to mitigate the impact of such predatory trading strategies.